TX : NYSE : Basic Materials
$21.32 | %
Today's Range: 21.03 - 21.41
Avg. Daily Volume: 423,100
07/22/16 - 4:02 PM ET

Financial Analysis


TERNIUM SA -ADR's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. TERNIUM SA -ADR has weak liquidity. Currently, the Quick Ratio is 0.60 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 decreased by 18.52% 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 FY16 Q1 FY15
Net Sales ($mil)1655.52126.08
EBITDA ($mil)305.35309.7
EBIT ($mil)204.68200.41
Net Income ($mil)94.3968.46


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)418.34436.21
Total Assets ($mil)8014.339860.19
Total Debt ($mil)1429.041957.21
Equity ($mil)4071.484997.09


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin27.5923.27
EBITDA Margin18.4414.56
Operating Margin12.369.43
Sales Turnover0.920.88
Return on Assets0.42-2.84
Return on Equity0.83-5.6
Debt Q1 FY16 Q1 FY15
Current Ratio1.511.65
Debt/Capital0.260.28
Interest Expense12.6624.05
Interest Coverage16.178.33


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)196.31196.31
Div / share0.00.0
EPS0.480.35
Book value / share20.7425.46
Institutional Own % n/a n/a
Avg Daily Volume423762.0372094.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 165.02 for the Metals & Mining industry and a significant premium compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 1.03 indicates a significant discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 1.91. 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 118.11 Peers 165.02   TX 3.37 Peers 12.79

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 9.41 Peers 44.32   TX 0.02 Peers 2.15

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 1.03 Peers 1.91   TX 112.67 Peers -163.28

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 0.56 Peers 3.52   TX -14.90 Peers -15.18

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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