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

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.16, providing financial flexibility
• Attractive 5.1% dividend yield providing steady income returns
• Established organization with 33,253 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($17) with negative 143% margin of safety—limited downside protection
• Revenue declining at 2.6% year-over-year signals potential demand weakness or market share loss

AI Analysis

Ternium S.A. Ternium S.A. American Depositary Shares (each representing ten shares USD1.00 par value) is a small-cap basic materials company valued at $8.3 billion. The business generates $15.6 billion in annual revenue with a 0.8% net margin. From a quality standpoint, Ternium shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is reasonably priced at 19.3x earnings, with trades far above its Graham Number ($17) with no margin of safety. Growth dynamics show revenue growing at -2.6% and profit growth of -56.5%. The 5.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 38/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer