TX : NYSE : Basic Materials
$19.37 -0.21 | -1.10%
Today's Range: 19.39 - 19.57
Avg. Daily Volume: 337,700
09/26/16 - 12:12 PM ET

Financial Analysis


TERNIUM SA -ADR's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. TERNIUM SA -ADR has weak liquidity. Currently, the Quick Ratio is 0.57 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 8.29% 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 FY16 Q2 FY15
Net Sales ($mil)1862.841996.07
EBITDA ($mil)392.35210.65
EBIT ($mil)293.09101.52
Net Income ($mil)153.9841.02


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)382.04432.06
Total Assets ($mil)8146.949211.54
Total Debt ($mil)1527.31933.4
Equity ($mil)4094.024464.12


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin30.0120.18
EBITDA Margin21.0610.55
Operating Margin15.735.09
Sales Turnover0.890.92
Return on Assets1.8-3.99
Return on Equity3.59-8.25
Debt Q2 FY16 Q2 FY15
Current Ratio1.351.48
Debt/Capital0.270.3
Interest Expense23.8724.45
Interest Coverage12.284.15


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)196.31196.31
Div / share0.90.9
EPS0.780.21
Book value / share20.8622.74
Institutional Own % n/a n/a
Avg Daily Volume336312.0428817.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 333.17 for the Metals & Mining industry and a value on par with the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 0.94 indicates a significant discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 1.87. 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 26.03 Peers 333.17   TX 3.29 Peers 13.00

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 7.32 Peers 26.27   TX 0.00 Peers 0.81

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 0.94 Peers 1.87   TX 140.10 Peers -140.34

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 0.53 Peers 3.72   TX -14.38 Peers -11.47

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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