About Ternium S.A.
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.
TX operates in the Manufacturing | Steel Works | approximately 20,100 employees | led by CEO Máximo Vedoya.
$5.8 billion 16.8x P/E 0.5x P/B 5.7x EV/EBITDA 1.1% ROE 1.5% rev. growth 10.7% yield
Ternium S.A. earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #41 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 91/100, which places TX in the top 9 percent of all stocks on this measure. stability at 87/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, TX ranks 21st out of 50 peers, placing it in the 58th percentile. At $5.8 billion, the company is a mid-cap name with room to grow.
Quality Analysis
Ternium S.A.'s quality score of 73/100 reflects solid profitability that ranks above the majority of stocks. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 1.1% exceeds the sector median of -2.0%. Gross margins of 16.3% suggest a commodity-like business with thin pricing power. Operating margins of 5.5% sit above the 3.0% sector average.
Net margins of 1.0% are positive but thin, leaving limited margin for error.
Valuation Assessment
A value score of 91/100 puts TX in the top 9 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 16.8x, an EV/EBITDA of 5.7x, a price-to-book of 0.5x, a price-to-sales of 0.3x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 69/100 shows TX is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of 1.5% provides a moderate fundamental underpinning. A beta of 0.58 means Ternium S.A. moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support Ternium S.A.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
Ternium S.A. earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #41 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position TX above the majority of the market.
Explore the full TX analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
