Ternium Stock Analysis, Valuation (NYSE:TX)
View the Ternium stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for TX stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Ternium SA (ADR) Stock Rating 3.8/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for TX stock analysis. Ternium valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our Ternium stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy TX stock?
- Ternium's revenue growth came in at 45.2% in 2018-03.
- The company saw a significant growth in revenue with a 5 year CAGR of 4.1.
- Ternium's average operating margin of 15.43 was exceptional.
- LTM Net margins were good at 9.5% for Ternium.
- The price to earnings multiple of 5.5 is attractive when compared with the sector average PE ratio of 17.4.
- The lower PS ratio 0.5 for TX stock versus Basic Materials sector average of 1.3 is a positive for the company.
- Ternium generates a high return on invested capital of 14.5.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Ternium at 17.2.
Should you sell TX stock?
- Cash flow from operations is 0.5239 times net income which is a negative signal.
Amigobulls Ternium stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.
Among the financials of the company, Ternium revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of TX technical analysis to check whether the fundamental story is reflected in the market sentiment.