Ternium S.a Intrinsic Stock Value – TERNIUM S.A. Struggles to Weather Global Inflationary Pressure and Conflict-Related Headwinds in 2022.
January 30, 2023
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Ternium S.a Intrinsic Stock Value – TERNIUM S.A ($NYSE:TX). is a leading steel manufacturer in Latin America, with a presence in Argentina, Colombia, Mexico, and Brazil. The company is listed on the New York Stock Exchange and has a strong history of profitability and growth.
However, the company is now faced with the challenge of surviving in the face of global inflationary pressure and conflict-related headwinds in 2022. The Russia-Ukraine war has caused a disruption in energy and food supplies, resulting in an inflationary pressure that has been felt throughout the world. China’s lockdowns have had an even more pronounced effect, as they have put a strain on the normalization of supply chains. This has caused a massive imbalance between supply and demand, leading to higher prices for goods and services. The resulting inflationary pressure has had an especially negative effect on TERNIUM S.A., as their products are typically priced in U.S. dollars, which is seeing a significant appreciation in value against other currencies. This appreciation has led to a decrease in the company’s competitiveness in international markets, as their goods become more expensive relative to their competitors. The ongoing Russia-Ukraine war has caused an increase in oil prices, which has led to an increase in transportation costs for the company’s products. This has had a negative impact on the company’s profitability, as they are unable to pass on these increased costs to their customers. Despite these challenges, TERNIUM S.A. remains optimistic about the future. The company is investing heavily in research and development to ensure that they remain competitive in the face of changing market conditions. They are also focusing on efficiency measures to reduce costs and improve their bottom line.
Share Price
Despite the challenging conditions, the company has generally received positive media attention up until now. On Friday, TERNIUM S.A stock opened at $40.4 and closed at $40.2, down by 0.7% from last closing price of 40.5. To compensate for the losses, TERNIUM S.A is diversifying its product portfolio and is exploring new markets to increase its presence in the steel industry. The company is also looking to reduce costs and increase efficiency in production to cut down on losses.
To further strengthen its financial situation, TERNIUM S.A is also exploring possibilities of raising capital by issuing debt or equity securities. Despite the current challenges, TERNIUM S.A is determined to make sure that its investors receive value for their money and that its operations remain profitable. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ternium S.a. More…
| Total Revenues | Net Income | Net Margin |
| 17.2k | 2.73k | 16.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ternium S.a. More…
| Operations | Investing | Financing |
| 2.86k | -1.34k | -968.31 |
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 |
| 17.42k | 3.64k | 59.99 |
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 |
| 17.9% | 51.7% | 23.9% |
| FCF Margin | ROE | ROA |
| 13.4% | 21.7% | 14.7% |
VI Analysis – Ternium S.a Intrinsic Stock Value
VI App is a powerful tool that simplifies the analysis of TERNIUM S.A‘s fundamentals, such as their financial performance, balance sheet, and cash flow. These factors are important in determining the company’s long-term potential. According to VI App, the fair value of a TERNIUM S.A share is around $41.8, calculated by our proprietary VI Line. Currently, the stock is traded at $40.2, meaning it is undervalued by 3.8%. This presents an opportunity for investors to purchase the stock at a discounted price. VI App takes into account many different factors when calculating the fair value of a stock. These include the company’s profitability, liquidity, and debt ratios, as well as the current market conditions. It also looks at the overall market sentiment towards the stock and compares it to the industry averages. With this comprehensive analysis, investors can make more informed decisions on whether to buy or sell TERNIUM S.A shares. Overall, VI App provides an easy and reliable way to assess the value of TERNIUM S.A’s stock. By looking at a company’s financial performance and other key indicators, investors can make more informed decisions about their investments. The fact that TERNIUM S.A’s stock is currently undervalued by 3.8% presents an opportunity to get in on a great deal. More…
VI Peers
In recent years, the Chinese steel industry has been undergoing a period of intense competition, with a number of major players vying for market share. Among them, Ternium SA has emerged as a key competitor, particularly in the production of high-quality steel products. The company has invested heavily in research and development in order to maintain its position as a leading player in the industry, and this has paid off in terms of both market share and profitability. While Ternium faces stiff competition from a number of other major Chinese steel producers, it is well-positioned to continue its growth in the years ahead.
– Lingyuan Iron & Steel Co Ltd ($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. is an attractive investment opportunity for investors despite the global inflationary pressure and conflicts in 2022. The company has seen mostly favorable media coverage and have taken measures to ensure their growth and profitability remain strong. Their financial performance has been stable, with solid balance sheet and debt-to-equity ratios.
Additionally, their business model has proven to be resilient to external factors. With strong management team, shareholders should expect to see a continued positive trend in company performance. Long-term investors should benefit from the current market conditions and should consider Ternium S.A. as part of their portfolio.
