TX : NYSE : Basic Materials
$30.1 -0.03 | -0.1%
Today's Range: 29.75 - 30.37
Avg. Daily Volume: 486400.0
07/21/17 - 4:02 PM ET

Financial Analysis


TERNIUM SA -ADR's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. TERNIUM SA -ADR has weak liquidity. Currently, the Quick Ratio is 0.56 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 15.02% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)2040.081655.5
EBITDA ($mil)471.97305.35
EBIT ($mil)371.37204.68
Net Income ($mil)261.3494.39


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)437.45418.34
Total Assets ($mil)9061.718014.33
Total Debt ($mil)1432.691429.04
Equity ($mil)4683.044071.48


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin30.9827.59
EBITDA Margin23.1318.44
Operating Margin18.212.36
Sales Turnover0.840.92
Return on Assets8.410.42
Return on Equity16.280.83
Debt Q1 FY17 Q1 FY16
Current Ratio1.461.51
Debt/Capital0.230.26
Interest Expense21.3812.66
Interest Coverage17.3716.17


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)196.31196.31
Div / share0.00.0
EPS1.330.48
Book value / share23.8620.74
Institutional Own % n/a n/a
Avg Daily Volume480973.0425530.0

Valuation


BUY. TERNIUM SA -ADR's P/E ratio indicates a significant discount compared to an average of 29.82 for the Metals & Mining industry and a significant discount compared to the S&P 500 average of 24.41. Conducting a second comparison, its price-to-book ratio of 1.22 indicates a significant discount versus the S&P 500 average of 3.04 and a discount versus the industry average of 1.73. 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 7.52 Peers 29.82   TX 6.04 Peers 11.21

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 significant 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 9.23 Peers 21.16   TX 0.50 Peers 1.42

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 1.22 Peers 1.73   TX 2055.55 Peers 243.36

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.

 

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

TX is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TX 0.75 Peers 2.64   TX 2.72 Peers 6.87

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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