TX : NYSE : Basic Materials
$31.33 | %
Today's Range: 31.06 - 31.5
Avg. Daily Volume: 358700.0
09/22/17 - 4:02 PM ET

Financial Analysis


TERNIUM SA -ADR's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. TERNIUM SA -ADR has weak liquidity. Currently, the Quick Ratio is 0.54 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 15.50% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)2262.651862.84
EBITDA ($mil)510.47392.35
EBIT ($mil)405.43293.09
Net Income ($mil)249.71153.98


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)331.49382.04
Total Assets ($mil)9095.568146.94
Total Debt ($mil)1614.231527.3
Equity ($mil)4728.764094.02


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin30.3830.01
EBITDA Margin22.5621.06
Operating Margin17.9215.73
Sales Turnover0.880.89
Return on Assets9.431.8
Return on Equity18.153.59
Debt Q2 FY17 Q2 FY16
Current Ratio1.451.35
Debt/Capital0.250.27
Interest Expense24.123.87
Interest Coverage16.8212.28


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)196.31196.31
Div / share1.00.9
EPS1.270.78
Book value / share24.0920.86
Institutional Own % n/a n/a
Avg Daily Volume354288.0497823.0

Valuation


BUY. TERNIUM SA -ADR's P/E ratio indicates a significant discount compared to an average of 40.62 for the Metals & Mining industry and a significant discount compared to the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 1.32 indicates a significant discount versus the S&P 500 average of 3.10 and a discount versus the industry average of 1.90. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, TERNIUM SA -ADR proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TX 7.26 Peers 40.62   TX 10.30 Peers 11.98

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TX is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TX is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TX 9.31 Peers 27.51   TX 0.23 Peers 0.62

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TX is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TX trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TX 1.32 Peers 1.90   TX 482.66 Peers 1398.57

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TX is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TX is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TX 0.78 Peers 3.07   TX 10.10 Peers 23.20

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TX is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TX significantly trails its peers on the basis of sales growth

 

 

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