Latest Ratios: P/E Ratio 20.2x · EV/EBITDA 7.0x · ROE 2.6%. (2004–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.7B | $7.5B | $5.7B | $8.3B | $6.0B | $8.5B | $5.7B | $4.3B | $5.3B | $6.2B | $4.7B |
| Enterprise Value | $9.8B | $8.6B | $5.8B | $8.0B | $5.1B | $8.2B | $7.2B | $6.3B | $7.2B | $9.2B | $5.8B |
| P/E Ratio → | 20.20 | 17.36 | — | 12.49 | 3.37 | 2.24 | 7.34 | 7.56 | 3.53 | 7.02 | 7.97 |
| P/S Ratio | 0.56 | 0.48 | 0.32 | 0.47 | 0.37 | 0.53 | 0.65 | 0.42 | 0.46 | 0.64 | 0.66 |
| P/B Ratio | 0.54 | 0.46 | 0.35 | 0.50 | 0.44 | 0.70 | 0.68 | 0.56 | 0.71 | 1.06 | 0.92 |
| P/FCF | — | — | 140.13 | 8.01 | 2.76 | 3.97 | 4.75 | 7.25 | 4.36 | — | 7.14 |
| P/OCF | 3.77 | 3.24 | 2.99 | 3.33 | 2.18 | 3.19 | 3.24 | 2.62 | 3.06 | 16.16 | 4.31 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.55 | 0.33 | 0.45 | 0.31 | 0.51 | 0.82 | 0.62 | 0.63 | 0.94 | 0.80 |
| EV / EBITDA | 6.99 | 6.12 | 2.90 | 2.79 | 1.54 | 1.40 | 4.20 | 4.15 | 2.64 | 4.75 | 3.74 |
| EV / EBIT | 13.89 | 11.84 | 6.29 | 5.32 | 1.89 | 1.41 | 5.96 | 6.92 | 3.32 | 6.21 | 4.88 |
| EV / FCF | — | — | 142.72 | 7.66 | 2.36 | 3.80 | 5.98 | 10.63 | 5.89 | — | 8.70 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.0% | 15.0% | 16.4% | 29.8% | 23.9% | 38.5% | 18.7% | 17.1% | 25.9% | 23.7% | 25.5% |
| Operating Margin | 4.5% | 4.5% | 7.2% | 12.5% | 16.4% | 32.8% | 12.4% | 8.5% | 18.4% | 15.0% | 15.8% |
| Net Profit Margin | 2.7% | 2.7% | -0.3% | 3.8% | 10.8% | 23.8% | 8.9% | 5.5% | 13.2% | 9.1% | 8.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 2.6% | 2.6% | -0.3% | 4.4% | 13.6% | 37.0% | 9.6% | 7.4% | 22.6% | 16.1% | 11.9% |
| ROA | 1.8% | 1.8% | -0.2% | 3.2% | 10.2% | 25.5% | 6.0% | 4.4% | 12.2% | 8.7% | 7.3% |
| ROIC | 3.2% | 3.2% | 5.8% | 11.2% | 16.4% | 36.3% | 8.2% | 6.8% | 17.4% | 14.6% | 13.8% |
| ROCE | 3.6% | 3.6% | 6.4% | 12.3% | 18.5% | 42.4% | 9.7% | 7.9% | 21.1% | 18.5% | 17.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.16 | 0.16 | 0.11 | 0.09 | 0.06 | 0.07 | 0.24 | 0.33 | 0.28 | 0.56 | 0.24 |
| Debt / EBITDA | 1.86 | 1.86 | 0.89 | 0.52 | 0.23 | 0.16 | 1.18 | 1.66 | 0.78 | 1.71 | 0.79 |
| Net Debt / Equity | — | 0.07 | 0.01 | -0.02 | -0.06 | -0.03 | 0.18 | 0.26 | 0.25 | 0.51 | 0.20 |
| Net Debt / EBITDA | 0.77 | 0.77 | 0.05 | -0.13 | -0.27 | -0.06 | 0.86 | 1.32 | 0.69 | 1.54 | 0.67 |
| Debt / FCF | — | — | 2.59 | -0.36 | -0.41 | -0.17 | 1.23 | 3.37 | 1.53 | — | 1.56 |
| Interest Coverage | 3.37 | 3.37 | 4.72 | 8.10 | 57.66 | 215.39 | 25.92 | 10.24 | 15.93 | 12.98 | 13.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.49 | 2.49 | 2.88 | 3.16 | 3.99 | 2.68 | 2.46 | 2.36 | 2.42 | 1.55 | 1.47 |
| Quick Ratio | 1.45 | 1.45 | 1.65 | 1.86 | 2.42 | 1.46 | 1.37 | 1.14 | 0.95 | 0.65 | 0.57 |
| Cash Ratio | 0.80 | 0.80 | 1.00 | 1.00 | 1.59 | 0.80 | 0.73 | 0.41 | 0.16 | 0.17 | 0.18 |
| Asset Turnover | — | 0.66 | 0.76 | 0.73 | 0.94 | 0.94 | 0.68 | 0.79 | 0.91 | 0.80 | 0.87 |
| Inventory Turnover | 3.24 | 3.24 | 3.11 | 2.50 | 3.60 | 2.53 | 3.51 | 3.92 | 3.15 | 2.90 | 3.27 |
| Days Sales Outstanding | — | 35.91 | 49.38 | 65.66 | 39.96 | 47.39 | 49.07 | 35.03 | 37.07 | 38.98 | 33.43 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 6.1% | 7.1% | 10.7% | 6.8% | 8.8% | 6.7% | — | 5.5% | 4.1% | 3.2% | 3.7% |
| Payout Ratio | 124.6% | 124.6% | — | 84.2% | 30.0% | 14.9% | — | 41.7% | 14.3% | 22.2% | 29.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.0% | 5.8% | — | 8.0% | 29.7% | 44.6% | 13.6% | 13.2% | 28.3% | 14.2% | 12.5% |
| FCF Yield | — | — | 0.7% | 12.5% | 36.2% | 25.2% | 21.0% | 13.8% | 22.9% | — | 14.0% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 6.1% | 7.1% | 10.7% | 6.8% | 8.8% | 6.7% | 0.0% | 5.5% | 4.1% | 3.2% | 3.7% |
| Shares Outstanding | — | $196M | $196M | $196M | $196M | $196M | $196M | $196M | $196M | $196M | $196M |
Cyclical Margin Compression
According to recent market data, Ternium trades at a forward P/E of 8.83, which, when compared to the broader steel sector, suggests that investors are heavily discounting the company's earnings potential due to persistent volatility in global steel pricing and regional macroeconomic risks in Latin America.
The significant gap between the TTM P/E of 20.20 and the forward multiple indicates that the market anticipates a recovery in earnings, yet the low P/B of 0.54 suggests deep skepticism regarding the long-term return on invested capital. This valuation profile implies that the market is pricing the stock as a distressed commodity play rather than a strategic USMCA-integrated manufacturer.
Based on reported financial statements, Ternium's ROIC has struggled to maintain momentum, hovering at a modest 1.2% in 2026Q1, which indicates that the company's massive capital investments in downstream facilities have yet to yield the compounding returns necessary to justify its current asset-heavy industrial footprint.
The decay in ROIC from 2.9% in 2024Q1 to current levels reflects the difficulty of maintaining margins in a high-cost input environment. Investors should monitor whether the ongoing transition to internal slab production can improve these returns or if the capital intensity will continue to dilute shareholder value.
As evidenced by the quarterly data, Ternium's cash conversion cycle reached 104 days in 2026Q1, a figure that highlights the structural challenges of managing high inventory levels and extended collection periods within the complex North American and Latin American industrial supply chains compared to domestic U.S. peers.
The persistent DIO of 115 days suggests that the company is carrying significant inventory risk, which may be a strategic choice to ensure supply chain reliability for automotive OEMs. However, this inefficiency ties up substantial liquidity that could otherwise be deployed for more productive capital allocation or shareholder returns.
According to recent balance sheet filings, Ternium maintains a debt-to-equity ratio of 0.18, which, when contrasted with the higher leverage profiles of global peers like ArcelorMittal, confirms the company's conservative financial posture and its ability to navigate cyclical downturns without immediate risk of covenant breaches.
This minimal leverage provides a critical defensive buffer, allowing the company to sustain its aggressive capital expenditure program despite the current margin compression. The interest coverage ratio, while volatile, remains sufficient to suggest that debt service is not a primary concern for the firm's near-term solvency.
The P/E ratio is frequently misapplied to Ternium's business model because it fails to account for the significant non-cash accounting distortions, particularly those arising from hyperinflationary accounting in Argentina, which can artificially depress reported net income and create a misleading picture of the company's true earning power.
Analysts should instead focus on EV/EBITDA or normalized free cash flow, as these metrics better capture the operational cash generation of the steel mills before the impact of currency-related non-operating items. Relying on P/E in this context likely leads to an overestimation of the company's risk and an underappreciation of its underlying cash-generating capacity.
Includes 30+ ratios · 22 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TX stock.
Ternium S.A.'s current P/E ratio is 20.2x. The historical average is 9.7x. This places it at the 94th percentile of its historical range.
Ternium S.A.'s current EV/EBITDA is 7.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.0x.
Ternium S.A.'s return on equity (ROE) is 2.6%. The historical average is 12.1%.
Based on historical data, Ternium S.A. is trading at a P/E of 20.2x. This is at the 94th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ternium S.A.'s current dividend yield is 6.08% with a payout ratio of 124.6%.
Ternium S.A. has 15.0% gross margin and 4.5% operating margin.
Ternium S.A.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.