Ternium S.a Intrinsic Stock Value – TERNIUM S.A Reports 12.8% Decrease in Revenue and 21.6% Decrease in Net Income for Q2 FY2023

August 14, 2023

🌥️Earnings Overview

For the second quarter of FY 2023 ending June 30 2023, TERNIUM S.A ($NYSE:TX) reported total revenue of USD 3871.3 million and net income of USD 626.9 million, which are 12.8% and 21.6% lower respectively than in the same period of the previous year.

Analysis – Ternium S.a Intrinsic Stock Value

GoodWhale is pleased to provide an analysis of TERNIUM S.A‘s financials. After a thorough assessment of the company’s market fundamentals and financial metrics, we have determined that the fair value of a TERNIUM S.A share is approximately $39.5, according to our proprietary Valuation Line. Currently, TERNIUM S.A’s stock is trading at $40.9, a price that is slightly overvalued by 3.6% relative to its fair value. This implies that now may be a good time to consider taking profits from the current position or selling the stock. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Ternium S.a. More…

    Total Revenues Net Income Net Margin
    15.17k 1.19k 9.1%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Ternium S.a. More…

    Operations Investing Financing
    2.73k -1.7k -784.92
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Ternium S.a. More…

    Total Assets Total Liabilities Book Value Per Share
    17.94k 3.63k 63.1
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Ternium S.a are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    20.3% 49.9% 10.9%
    FCF Margin ROE ROA
    13.4% 8.4% 5.8%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items

  • Peers

    In recent years, the Chinese steel industry has been undergoing a period of intense competition, with a number of major players vying for market share. Among them, Ternium SA has emerged as a key competitor, particularly in the production of high-quality steel products. The company has invested heavily in research and development in order to maintain its position as a leading player in the industry, and this has paid off in terms of both market share and profitability. While Ternium faces stiff competition from a number of other major Chinese steel producers, it is well-positioned to continue its growth in the years ahead.

    – Lingyuan Iron & Steel Co Ltd ($SHSE:600231)

    Lingyuan Iron & Steel Co Ltd is a Chinese steel producer with a market cap of $5.88B as of 2022. The company has a Return on Equity of -2.8%. Lingyuan Iron & Steel Co Ltd produces a variety of steel products including pipes, plates, and coils. The company has over 3,500 employees and operates in China, Europe, and the United States.

    – Daehan Steel Co Ltd ($KOSE:084010)

    Daehan Steel Co Ltd is a South Korean steel manufacturer. The company has a market cap of 232.09B as of 2022 and a Return on Equity of 28.52%. Daehan Steel Co Ltd is a leading manufacturer of steel products in South Korea. The company produces a wide range of steel products, including hot rolled coils, cold rolled coils, galvanized steel coils, and pre-painted steel coils.

    – Xinjiang Ba Yi Iron & Steel Co Ltd ($SHSE:600581)

    Xinjiang Ba Yi Iron & Steel Co Ltd is a Chinese steel company with a market cap of 5.72 billion as of 2022. The company has a Return on Equity of -24.16%. The company is involved in the production of iron and steel products.


    Ternium S.A reported lower total revenue and net income for the second quarter of FY2023 compared to the same period in the previous year. Total revenue decreased by 12.8% to USD 3871.3 million, and net income decreased by 21.6% to USD 626.9 million. As a result, Ternium S.A’s stock price dropped on the same day. Investors should analyze Ternium S.A’s financial performance and outlook before investing in order to determine if the company can deliver growth and profitability over the long-term.

    Additionally, investors should assess other factors such as capital structure, competitive landscape, and macro-economic trends when making an investment decision.

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