Ternium SA (TX) AI Stock Analysis

• Market Cap: $7.10B
• Dividend Yield: 7.47%
• Average Volume (3M): 178.60K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.47
• Revenue Growth: -16.83%
• EPS Growth: N/A
• Country: US
• Employees: 33,949
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 196,307,680
• 10 Day Avg. Volume: 152,899
• 30 Day Avg. Volume: 178,600
• PEG Ratio: 0.60
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 140.13
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 5.04
• 1Y Price Target: $37.25
• Price Target Upside: -0.56% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $41.00 ▲(9.45% Upside)

Ternium SA's overall stock score is driven by its strong valuation and positive technical indicators. Financial performance shows mixed results with strong balance sheet but cash flow concerns. The earnings call provided a positive outlook despite some regional challenges. The stock's attractive dividend yield further supports its investment appeal.

Ternium SA Business Overview & Revenue Model

Company Description

Ternium S.A. manufactures, processes, and sells various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador, and Nicaragua. It operates through two segments, Steel and Mining. The Steel segment offers slabs, billets and round bars, hot rolled flat products, merchant bars, reinforcing bars, stirrups and rods, tin plate and galvanized products, tubes, beams, insulated panels, roofing and cladding, roof tiles, steel decks, pre-engineered metal building systems, and pig iron products; and sells energy. The Mining segment sells iron ore and pellets. The company also provides medical and social; scrap; and engineering and other services, as well as operates as a distribution company. It serves various companies and small businesses in the construction, automotive, home appliances, agro, packaging, transport, and energy industries. The company was founded in 1961 and is based in Luxembourg City, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.

How the Company Makes Money

Ternium generates revenue primarily through the sale of steel products to various sectors, including construction, automotive, and consumer goods. The company operates on a revenue model that includes both direct sales to end-users and sales through distributors. Key revenue streams consist of the sale of flat steel products, long steel products, and steel processing services. Additionally, Ternium benefits from strategic partnerships with major industries that require substantial steel supplies, which helps secure long-term contracts and stable revenue. Market conditions, such as demand for steel and raw material prices, significantly influence the company's earnings, alongside its operational efficiencies and capacity utilization rates.

Ternium SA Financial Statement Overview

Summary

Ternium SA is facing financial headwinds with declining revenues and profitability impacting its income statement. Despite a strong balance sheet with manageable leverage, the cash flow statement highlights potential liquidity concerns. Strategic improvements are needed to regain financial stability and enhance profitability.

Income Statement

Ternium SA shows a declining revenue trend over the TTM, with a significant drop in net income, resulting in negative net profit margins. The gross profit margin has also decreased, reflecting increased cost pressures. EBIT and EBITDA margins have deteriorated, indicating operational challenges. However, past years showed stronger profitability, hinting at potential recovery.

Balance Sheet

The balance sheet remains solid with a low debt-to-equity ratio, implying prudent financial leverage. The equity ratio is robust, underscoring strong asset backing. However, the recent decline in stockholders' equity due to net losses could pose future risks if not addressed.

Cash Flow

Recent cash flow performance is concerning, with a negative free cash flow in the TTM reflecting high capital expenditures and declining operating cash flows. The operating cash flow to net income ratio is strong, but the trend of declining free cash flow indicates potential liquidity challenges if the situation persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.24B	17.65B	17.61B	16.41B	16.09B	8.74B
Gross Profit	2.17B	2.89B	5.26B	3.93B	6.20B	1.64B
EBITDA	1.92B	1.67B	2.21B	3.33B	5.96B	1.77B
Net Income	594.93M	-53.67M	676.04M	1.77B	3.83B	778.47M
Balance Sheet
Total Assets	23.92B	23.13B	24.18B	17.49B	17.10B	12.86B
Cash, Cash Equivalents and Short-Term Investments	3.38B	3.85B	3.82B	3.53B	2.57B	1.35B
Total Debt	2.57B	2.44B	1.47B	1.27B	1.74B	2.02B
Total Liabilities	7.34B	7.00B	7.37B	3.72B	4.86B	4.41B
Stockholders Equity	12.00B	11.97B	12.42B	11.85B	10.54B	7.29B
Cash Flow
Free Cash Flow	-309.90M	40.74M	1.04B	2.17B	2.15B	1.20B
Operating Cash Flow	2.03B	1.91B	2.50B	2.75B	2.68B	1.76B
Investing Cash Flow	-1.62B	-1.38B	-1.47B	-1.32B	-1.05B	-1.18B
Financing Cash Flow	-236.10M	-488.38M	-766.36M	-1.02B	-854.38M	-506.25M

Ternium SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TX, the sentiment is Positive. The current price of 37.46 is above the 20-day moving average (MA) of 35.81, above the 50-day MA of 34.63, and above the 200-day MA of 30.34, indicating a bullish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 46.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TX.

Ternium SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TX	―	$7.10B	12.13	4.89%	7.47%	-16.83%	―
GGB	―	$6.39B	12.01	5.77%	3.16%	-6.55%	-37.93%
CMC	―	$6.78B	82.31	1.99%	1.19%	-1.61%	-81.36%
SIM	―	$4.60B	13.12	10.49%	―	-18.58%	-35.32%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CLF	―	$6.50B	-4.05	-27.16%	―	-6.76%	-255.94%
SID	―	$2.12B	-5.60	-15.57%	14.08%	-10.77%	-192.16%

Ternium SA Corporate Events

Ternium S.A. Releases Mid-Year Financial Results Amid Market Challenges

On July 29, 2025, Ternium S.A. released its consolidated financial statements for the period ending June 30, 2025. The report highlights a decrease in net sales and gross profit compared to the previous year, reflecting challenges in the market. The financial results may impact the company’s strategic positioning and stakeholder confidence, as they navigate through a competitive and fluctuating industry environment.

Ternium S.A. Reports Strong Mining Shipments in Q2 2025

On July 29, 2025, Ternium S.A. reported its financial results for the second quarter and first half of 2025, highlighting a shipment of 3.7 million tons of steel products and 2.0 million tons of mining products. The company achieved an adjusted EBITDA of $403 million and a net income of $259 million, with a net cash position of $1.0 billion. Despite a slight decrease in steel shipments compared to the previous quarter, mining shipments increased significantly, reflecting a robust performance in that segment.