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Ternium S.A (TXR) Fair Value & Analysis

Basic Materials · AR · Market cap 13.3T ARS

TS Ternium S.A TXR · BA
Price17,780 ARS
Fair Value27,210 ARS
Upside+53.0%
Quality46/100
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Expensive Growth
Thin margins · 3.7% net margin
Low debt · negative free cash flow
Mixed vs. peers (8/14)
Narrow moat 28/100
Evidence: Medium Range 20,411 ARS – 34,024 ARS Share as image

Fair value as of: Jul 19, 2026

From 13 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from 32,586 ARS to 27,210 ARS (−16.5%) since Jun 24, 2026. Share price +11.7% over the past month.

Below-average quality, screening 53% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (20,411 ARS). The market is more pessimistic than our downside scenario.
  • Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

25,429 ARS 2,090 ARS Fair Value 27,210 ARS Feb 2021 Jun 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range 2,090 ARS – 25,429 ARS · fair‑value band 20,411 ARS – 34,024 ARS · the 17,780 ARS price screens below the 27,210 ARS fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Ternium S.A (TXR) currently trades at 17,780 ARS, while our model-based Fair Value estimate is 27,210 ARS, implying the stock looks roughly 53.0% undervalued today. The Quality Score stands at 46/100 (below-average quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Ternium S.A generated revenue of 15.6B ARS at a net margin of 3.7%. It earns a return on equity of 3.2%. Net debt stands at 317M ARS. The stock trades on a trailing P/E of 8.3. Fundamentals as of Jul 19, 2026

Our scenario range runs from 20,411 ARS (bear case) to 34,024 ARS (bull case); at 17,780 ARS, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 111% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -25% fair-value upside, at 53%, TXR screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income 33,610 ARS 33,181 ARS 29,649 ARS 76
ROIC Compounder 12,548 ARS 14,943 ARS 17,086 ARS 72
Growth-Adj P/E 16,022 ARS 22,894 ARS 29,752 ARS 68
All 13 models by family
Earnings-Based
Graham-Dodd 10,878 ARS 27,269 ARS 35,383 ARS 54
PEG = 1.0 4,996 ARS 7,139 ARS 9,282 ARS 46
EPV 12,548 ARS 14,943 ARS 17,086 ARS 59
Multiples
P/E Multiple 20,411 ARS 27,210 ARS 34,024 ARS 63
P/S Multiple 20,411 ARS 27,210 ARS 34,024 ARS 58
P/B Multiple 20,411 ARS 27,210 ARS 34,024 ARS 55
EV/EBIT 27,535 ARS 37,068 ARS 46,601 ARS 53
EV/EBITDA 41,606 ARS 55,839 ARS 70,072 ARS 54
EV/Revenue 23,722 ARS 34,334 ARS 44,961 ARS 43
Asset-Based
NCAV (Graham) 22,480 ARS 30,122 ARS 44,961 ARS 50
Economic Profit
Residual Income 33,610 ARS 33,181 ARS 29,649 ARS 76
ROIC Compounder 12,548 ARS 14,943 ARS 17,086 ARS 72
Growth Earnings
Growth-Adj P/E 16,022 ARS 22,894 ARS 29,752 ARS 68

Widest divergence: Asset-Based (30,122 ARS) versus Earnings-Based (14,943 ARS). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 15.6B ARS
Net margin 3.7%
Return on equity 3.2%
Free cash flow −187M ARS FY2025
P/E ratio 8.3
Operating margin 7.4%
More key figures
EPS (TTM) 2,144 ARS
Dividend yield 0.0%
EPS growth (YoY) +218%
Net debt 317M ARS FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 47 · Market factors (momentum, volatility) 75

Profitability 27
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 82
Price trend over the last 3–12 months (market factor)
52W Momentum 92
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Ternium S.A., together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. The company operates through two segments, Steel and Mining.

Full company description

Ternium S.A., together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. The company operates through two segments, Steel and Mining. The Steel segment offers slabs, heavy plates, hot and cold rolled products, coated products, stamped steel parts for the automotive industry, roll-formed and tubular products, billets, bars, and other products, including sales of energy. Its Mining segment sells iron ore and pellets. It also provides medical and social; scrap; and engineering and other services. In addition, the company engages in the exploration, exploitation, and pelletizing of iron ore. Ternium S.A. was founded in 1961 and is based in Luxembourg, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ternium S.A reported revenue of 15.6B ARS in FY2025 versus 16.1B ARS in FY2021, a compound −0.8%/yr. Reported net income was 425M ARS in FY2025, compounding −42.3%/yr from FY2021.

Growth Quality 48/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
15.6B ARS
Latest YoY
−11.6%
Avg. growth/yr (3Y)
−1.7%
Avg. growth/yr (5Y)
+12.3%
Avg. growth/yr (9Y)
+8.9%
Revenue −0.8%/yr
FY21 16.1B ARS
FY22 16.4B ARS
FY23 17.6B ARS
FY24 17.6B ARS
FY25 15.6B ARS
Net income −42.3%/yr
FY21 3.8B ARS
FY22 1.8B ARS
FY23 676M ARS
FY24 −53.7M ARS
FY25 425M ARS

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Cite: Fair Value Calculator (2026). "Ternium S.A Fair Value". https://www.fairvalue-calculator.com/stock/TXR

Peer Group

Steel · 378 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 46 · Below median
Fair Value upside +53% · Top 25%
Return on equity (TTM) 3% · Below median
Return on assets 2% · Above median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth 0% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.15× · Higher than median

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 8.3× · Cheaper than 75% of peers
P/B 0.78× · Cheaper than median
P/S (TTM) 0.60× · Pricier than median
EV/EBITDA 6.2× · Cheaper than median
PEG 0.03× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 20
FUTURE 0 · sector 4
PAST 13 · sector 15
HEALTH 92 · sector 95
DIVIDEND 0 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Tata Steel Limited TTST $0.2010 $0.2000 -0%
JSW Steel Limited JSWSTEEL ₹1,227 ₹1,140 -7%
Baoshan Iron & Steel Co 600019 ¥5.89 ¥8.07 +37%
China Steel Corporation 2002A 38.55 TWD 8.74 TWD -77%
POSCO Holdings 005490 313,500 KRW 155,270 KRW -50%
Companhia Siderúrgica Nacional, SID 13,670 ARS 15,940 ARS +17%
Jindal Steel Limited JINDALSTEL ₹1,028 ₹545.12 -47%
Lloyds Metals and Energy Limited LLOYDSME ₹1,844 ₹1,098 -40%
SSAB AB SSABA kr 96.04 kr 72.43 -25%
Gerdau S.A GGBN 83.50 MXN 42.64 MXN -49%

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Frequently asked questions

Is Ternium S.A (TXR) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of 27,210 ARS versus a price of 17,780 ARS, about +53% (undervalued).
What is the fair value of TXR?
Our model-based fair value for Ternium S.A is 27,210 ARS (as of Jul 19, 2026), built from audited fundamentals. The current price is 17,780 ARS.
What is the quality score of TXR?
Ternium S.A has a Quality Score of 46/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Ternium S.A (TXR)?
Ternium S.A reported trailing-twelve-month revenue of about 15.6B ARS (latest available figure, as of Jul 19, 2026).
What is the net profit margin of TXR?
The net profit margin of Ternium S.A is about 3.7%, meaning it keeps roughly 3.7% of revenue as net income. Based on the latest reported figures.
Does Ternium S.A pay a dividend?
Ternium S.A currently shows a dividend yield of about 0.01% relative to its recent price (as of Jul 19, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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