Ternium S.A. Ternium S.A. American Depositary Shares (each representing ten shares USD1.00 par value) (TX)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Ternium’s ADS traded at $58.99, giving a market capitalization of $8.3 billion. On supplied FairStock calculations, it sells for 16.39 times earnings and 0.94 times book, with EV/EBITDA of 4.76. That mix is not a classic Graham bargain: the Graham Number is $22.54, so the price carries a -161.71% margin of safety. In the second quarter of 2026, revenue was $4.3 billion and net income was $343.7 million, a 7.92% margin—respectable, but steel is cyclical and one quarter does not prove durable earning power. The company’s returns are modest: ROE of 4.43% and ROCE of 3.08%, which suggests little economic moat. A commodity steel producer generally lacks pricing power unless it has low-cost ore, niche products, or regional dominance. The balance sheet is a positive: debt-to-equity is 0.18, and the dividend yield is 3.84%. Yet trailing free cash flow is -$474.4 million, a -5.7% FCF yield, so reported profits are not converting into cash. Piotroski is 6/9, but Altman Z-Score of 1.18 flags financial stress. The supplied Lynch category is 'none' because only 0 years of filed results are available and three are needed; that lack of history makes consistency hard to judge. I would want to see positive free cash flow, better ROCE, and evidence that second-quarter 2026 margins persist before calling this a margin-of-safety investment.

In plain English: Ternium makes and sells steel products and also mines iron ore, mainly in Mexico, Brazil, and other markets. The business is profitable and has relatively low debt, but it has been burning cash and earns low returns on its assets. At the recent price near $59, the shares look cheaper than their accounting value but not clearly cheap compared with earnings, so this looks like a mixed, cyclical situation.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer