Ternium Reiterates ‘Buy’ Rating After Boosting Stake in Brazilian Steelmaker
December 15, 2023
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Ternium ($NYSE:TX) S.A., a leading steel producer in Latin America, has recently reiterated its ‘buy’ rating after increasing its stake in the Brazilian steelmaker CSP. This move reinforces Ternium’s commitment to the promising South American steel market and is a key signal of the company’s strong outlook. With production sites located in Argentina, Mexico, Colombia, Guatemala and the United States, the company is a leader in the production of flat and long steel products. It boasts a diverse portfolio of assets and operates a global network of customers. It further strengthens their position within the Brazilian market and reinforces their commitment to being a reliable partner to their customers.
By increasing its stake in CSP, Ternium will be able to take full advantage of the growing demand for steel in Brazil. As the leader in Latin American steel production, the company has proven itself to be an attractive investment option for those looking to capitalize on the growing demand for steel in the area. With operations across the region, Ternium is well-positioned to take advantage of any emerging opportunities.
Stock Price
On Wednesday, TERNIUM S.A, a leading integrated steel and mining company, saw its stock open at $38.4 and close at $40.1, representing a 3.7% increase from previous closing price of 38.7. This is primarily due to the company’s decision to increase its stake in Brazilian steelmaker Usiminas. The company believes that this investment allows them to gain access to the local Brazilian market and will benefit Ternium’s overall business strategy. This latest move has been well-received by investors, with the stock price increasing after the news was announced.
In addition, analysts have reiterated their “buy” rating for TERNIUM. As such, Ternium’s stock is expected to continue to perform well in the market. 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
We classify TERNIUM S.A as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This type of company may be attractive to investors who are looking for stability and a moderate level of growth, as opposed to higher risk investments that may offer more potential upside. Additionally, TERNIUM S.A has a high health score of 9/10 with regard to its cashflows and debt, which indicates that it is capable of sustaining future operations in times of crisis. 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 production company that operates across Latin America and the Caribbean. Analysts recently reaffirmed their “Buy” rating on Ternium after the company increased its stake in a Brazilian steelmaker. Ternium stock reacted positively to the news, with prices rising the same day. Investors are optimistic about the potential of the company, as it stands to benefit from a stronger presence in the Brazilian market. Analysts believe that this move should help Ternium to further expand its presence and benefit from a more efficient way of producing steel.
Additionally, the company is expected to take advantage of economies of scale, thereby reducing costs and increasing profitability. Therefore, analysts recommend taking a long-term view on Ternium stock and maintaining a Buy rating.
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