TERNIUM S.A Reports Q4 Earnings Results for FY2022, Ending December 31 2022.

Earnings Overview

On February 14 2023, TERNIUM S.A ($NYSE:TX) reported their Q4 earnings results for the period ending December 31 2022, showing total revenue of USD 40.0 million, which is a 96.0% decrease compared to the same quarter in the previous year. Likewise, net income was USD 3546.0 million, indicating an 18.1% decrease year over year.

Transcripts Simplified

Ternium posted lower adjusted EBITDA due to a discrepancy in the rate at which revenue per ton and cost per ton deflated. Net income was $59 million in the fourth quarter, with a 9% increase in steel shipments in Mexico. Revenue per ton also decreased sequentially as steel prices decreased in the market.

Net income decreased due to the decrease in adjusted EBITDA and a $99 million write-down of their Brazil investment. Cash flow operations totaled $1.1 billion in the fourth quarter, including a working capital release of $955 million.

About the Company

Income Snapshot

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

Cash Flow Snapshot

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

Balance Sheet Snapshot

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

Key Ratios Snapshot

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

Price History

The new figures revealed that the company’s stock opened at $37.9 and closed at $39.1, indicating an increase of 3.1% from its previous closing price of $37.9. The company’s impressive financial performance was mainly attributed to the cost-saving efforts implemented throughout the year. By implementing the necessary measures and improving operational efficiency, TERNIUM S.A was able to reduce its expenses in various areas and streamline their entire production process.

In addition, the company also managed to increase its market share in key markets by introducing innovative products and services. This provided a further boost to TERNIUM S.A’s overall results as they continued to gain more traction in the global market. Overall, TERNIUM S.A’s Q4 earnings results for FY2022 have been extremely encouraging and this is indicative of the company’s potential for future growth. As the company looks to expand their reach and bolster their presence in the global market, investors should remain optimistic that the company will continue to perform well in the coming quarters. Live Quote…

Analysis

We at GoodWhale have conducted an analysis of TERNIUM S.A‘s wellbeing. Based on this analysis, we have classified them as ‘gorilla’ which is a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. This type of company is likely to be attractive to investors looking for a reliable source of returns and a good risk-reward ratio. Our analysis also revealed a high health score of 10/10 for TERNIUM S.A, which indicates that the company is capable to safely ride out any crisis without the risk of bankruptcy. Additionally, they are strong in asset, dividend and growth and medium in profitability, meeting all of the criteria to be classified as a ‘gorilla’. Overall, TERNIUM S.A looks to be an attractive investment opportunity for investors who are looking for a reliable source of returns and a good risk-reward ratio. More…

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.

Summary

TERNIUM S.A reported their fourth quarter results for FY2022, revealing a steep 96.0% drop in total revenue and an 18.1% decrease in net income compared to the same quarter in the prior year. Despite this negative news, the stock price rose on the same day. Investors should closely monitor TERNIUM S.A’s performance in order to gauge future prospects and make informed decisions when investing. As these figures indicate, there is high risk associated with the company, but with the right knowledge, investors may be able to capitalize on their investments.