TX : NYSE : Basic Materials
$23.1 | %
Today's Range: 22.97 - 24.09
Avg. Daily Volume: 450900.0
01/20/17 - 4:02 PM ET

Financial Analysis


TERNIUM SA -ADR's gross profit margin for the third 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 0.55 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 remained unchanged 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1856.051945.36
EBITDA ($mil)499.44246.38
EBIT ($mil)396.33136.47
Net Income ($mil)228.8524.82


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)339.32351.26
Total Assets ($mil)8332.758834.75
Total Debt ($mil)1399.221691.67
Equity ($mil)4310.554341.31


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin35.2621.69
EBITDA Margin26.912.66
Operating Margin21.357.02
Sales Turnover0.860.93
Return on Assets4.212.12
Return on Equity8.144.31
Debt Q3 FY16 Q3 FY15
Current Ratio1.461.52
Debt/Capital0.250.28
Interest Expense28.7523.41
Interest Coverage13.795.83


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)196.31196.31
Div / share0.00.0
EPS1.170.13
Book value / share21.9622.11
Institutional Own % n/a n/a
Avg Daily Volume449394.0319544.0

Valuation


BUY. TERNIUM SA -ADR's P/E ratio indicates a significant discount compared to an average of 487.40 for the Metals & Mining industry and a significant discount compared to the S&P 500 average of 25.41. Conducting a second comparison, its price-to-book ratio of 1.08 indicates a significant discount versus the S&P 500 average of 2.83 and a discount versus the industry average of 2.02. 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 13.28 Peers 487.40   TX 4.11 Peers 11.83

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 9.22 Peers 27.40   TX 0.00 Peers 1.02

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 1.08 Peers 2.02   TX 86.45 Peers -45.34

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 0.65 Peers 3.18   TX -12.63 Peers -10.69

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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