Ternium S.a Intrinsic Value – LPL Financial LLC Reduces Its Investment in Ternium S.A.
November 17, 2023
🌥️Trending News
LPL Financial LLC recently announced that it has reduced its stake in Ternium ($NYSE:TX) S.A., one of the world’s leading steel manufacturing companies. LPL Financial LLC is a large full-service financial services company, offering investment solutions for individuals and businesses. Ternium S.A. is a leading manufacturer of steel products and flat rolled products. The company is also the largest integrated steel producer in Mexico, with operations in Argentina, Guatemala, Colombia, and Costa Rica.
LPL Financial’s move to reduce its ownership of Ternium S.A. shares is the latest in a series of cuts it has made in recent months. This move reflects LPL Financial’s commitment to diversifying its portfolio and reducing its exposure to any one company or sector.
Share Price
On Thursday, TERNIUM S.A stock opened at a price of $36.0 and closed at $36.6, representing an increase of 0.8% from the prior closing price of $36.3. This surge in stock price came despite the news that LPL Financial LLC, a financial services company, had reduced its investment in the company. Despite this, investors appeared to remain confident in TERNIUM S.A stock, resulting in the small increase in share price. 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 |
| 16.23k | 302 | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ternium S.a. More…
| Operations | Investing | Financing |
| 2.64k | -1.46k | -768.67 |
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 |
| 24.29k | 7.42k | 63.35 |
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 |
| 24.5% | 52.6% | 4.8% |
| FCF Margin | ROE | ROA |
| 10.5% | 3.9% | 2.0% |
Analysis – Ternium S.a Intrinsic Value
At GoodWhale, we recently completed a comprehensive analysis of TERNIUM S.A‘s wellbeing, with the aim of determining the fair value of its shares. Our proprietary Valuation Line system indicated that the fair value of TERNIUM S.A’s shares is $42.4. However, at the moment the stock is trading at $36.6 – a fair price that is undervalued by 13.7%. Therefore, if investors are looking for a good value buy, then TERNIUM S.A may be an attractive option right now. More…
Peers
In recent years, the Chinese steel industry has been undergoing a period of intense competition, with a number of major players vying for market share. Among them, Ternium SA has emerged as a key competitor, particularly in the production of high-quality steel products. The company has invested heavily in research and development in order to maintain its position as a leading player in the industry, and this has paid off in terms of both market share and profitability. While Ternium faces stiff competition from a number of other major Chinese steel producers, it is well-positioned to continue its growth in the years ahead.
– Lingyuan Iron & Steel Co Ltd ($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. is a steel manufacturing company based in Luxembourg. Recently, LPL Financial LLC has reduced its stake in Ternium S.A. This is an indication that investors may be wary of the stock. To assess the viability of Ternium S.A. as an investment, investors should consider the company’s financials, industry trends, and competitive landscape. Ternium S.A.’s annual revenue and net income should be evaluated to determine the company’s performance and future prospects.
Industry trends should also be taken into account, such as steel prices, supply and demand, and public opinion. Finally, investors should consider the competitive landscape of the industry to see how Ternium S.A. stands up against its peers. By analysing these factors, investors can make a more informed decision on whether to invest in Ternium S.A. or not.
