Envestnet Asset Management Divests 351337 Shares of Ternium S.A.
December 11, 2023
☀️Trending News
Envestnet Asset Management Inc. recently divested 351337 shares of Ternium ($NYSE:TX) S.A, a leading steel producer in Latin America. Ternium is part of Techint Group, a privately-owned multinational group of companies headquartered in Argentina. The company has several production facilities located in Argentina, Brazil, Mexico, Colombia, Guatemala and the United States. Ternium S.A is the only steel producer listed on the NYSE, where its shares are traded under the symbol TX. Ternium S.A has a diversified portfolio of products that include cold-rolled and hot-rolled coils, pre-painted coils, galvanized coils, sheet piles, beams, merchant bars, and shapes.
The company has also been expanding its presence in other sectors such as automotive, energy, construction and infrastructure. The company is poised to continue its growth trajectory in the upcoming quarters.
Stock Price
Following the divestment, TERNIUM S.A‘s stock opened at $39.2 and closed at $40.1, representing an increase of 2.3% from the previous closing price of $39.2. This transaction is indicative of the growing confidence in the company and its future prospects. Despite the divestment, TERNIUM S.A remains well-positioned to take advantage of the opportunities available in the steel industry and to continue delivering value to its shareholders in the long-term. 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
At GoodWhale, we recently conducted an analysis of TERNIUM S.A.’s financials. After assessing the company, we concluded that they have achieved moderate revenue or earnings growth, and are classified as a ‘rhino’ on the Star Chart. Based on this information, we believe that investors who are looking for a company with strong asset management and a good health score may be interested in investing in TERNIUM S.A. As seen on our Star Chart, TERNIUM S.A has a health score of 9/10, indicating that they are able to pay off their debt and fund future operations. Additionally, TERNIUM S.A is strong in asset management and medium in dividend, growth, and profitability. Therefore, based on our analysis, we believe that investors looking for a company with a good health score and strong asset management may be interested in investing in TERNIUM S.A. 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. Envestnet Asset Management Inc. recently sold 351337 shares of the company. This suggests that they are reducing their investment in the firm. Analyzing the financial health of Ternium shows that their earnings per share and dividend yield are both fairly low. Furthermore, their operating margin and return on equity have been declining in recent years. Ternium’s stock price has also been volatile, making it a risky investment.
However, the company has a strong cash flow, which indicates they have good liquidity. Overall, investors should take a cautious approach when considering investing in Ternium S.A. due to the potential risks associated with the stock.
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