Ternium S.A. (TX) AI Stock Analysis

Ternium S.A. is a manufacturer, processor, and distributor of steel products across Latin America and the United States, including Mexico, Argentina, and Brazil. Operating through Steel and Mining segments, the company produces slabs, billets, hot rolled flat products, tubes, galvanized steel, and construction materials like roofing and cladding. It also extracts iron ore and pellets to support vertical integration, supplies pre-engineered metal building systems, and sells energy resources. Headquartered in Luxembourg City and founded in 1961, Ternium serves customers in construction, automotive, home appliances, packaging, transportation, and energy as a subsidiary of Techint Holdings S.à r.l.

Ternium achieved a 5-year revenue CAGR of 12.3% from FY2020 to FY2025. After revenue reached $17.65B in FY2024, it fell 11.6% to $15.61B in FY2025 as net income dropped from $3.83B in FY2021 to $425.2M in FY2025. Gross margin contracted from 38.5% in FY2021 to 15.0% in FY2025, while operating margin fell from 32.8% to 4.5%. However, performance rebounded in the trailing twelve months ending June 30, 2026, generating $16.00B in revenue with a 12.2% operating margin. In the latest quarter, revenue grew 10.0% year-over-year and earnings expanded 59.5%.

As of June 30, 2026, Ternium held $2.73B in cash and short-term investments against $3.00B in total debt, leaving net debt at $272.6M. The company maintains a current ratio of 2.58 and a debt-to-equity ratio of 0.24 on $12.30B in shareholders' equity. In FY2025, operating cash flow was $2.31B, but capital expenditures of $2.50B pushed free cash flow to -$187.2M. Ternium paid $530.0M in dividends in FY2025, while its 5-year share count change was 0.0%.

Ternium holds a market cap of $11.21B and an enterprise value of $11.72B. The stock trades at a trailing P/E of 15.9x and a forward P/E of 8.5x, below the median of its US-listed Basic Materials peers at 19.7x and 13.4x, respectively. Its EV/EBITDA multiple of 5.6x is also lower than the peer median of 10.5x, and its price-to-sales ratio stands at 0.7x versus the peer median of 1.8x. Over the past year, TX gained 70.7%, outpacing the S&P 500 return of 16.8%.

Ternium pays a semiannual dividend with an annual forward payout of $2.20 per share, representing a 3.85% dividend yield. The company has paid dividends for 17 consecutive years and achieved a 5-year annualized dividend growth rate of 17.6%. Its payout ratio stands at 67.5%, and the last ex-dividend date was May 14, 2026.

Wall Street analysts hold 4 Strong Buy, 4 Buy, and 5 Hold ratings on Ternium, with 0 Sell or Strong Sell ratings. The mean price target is $61.15, implying a 7.1% upside compared to the last close of $57.10. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $6.62 on revenue of $17.41B. Ternium has exceeded EPS estimates in 1 of its last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Ternium S.A. (TX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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