TX - Ternium: Trading At Less Than 3 Times EBITDA
2024-03-07 10:30:00 ET
Summary
- Ternium S.A. ADR EACH REPR 10 ORD NPV's investments in growth are starting to pay off, with a total return of over 400% since 2019.
- The demand for steel and margins remained robust in Latin America in 2023, contributing to Ternium's strong financial performance.
- Despite high capex commitments in the next few years, Ternium's healthy balance sheet and anticipated cash flows make it an interesting investment opportunity.
Introduction
I turned bullish on Ternium S.A. ADR EACH REPR 10 ORD NPV ( TX ) in 2019, when I argued the company’s investments in growth would start to pay off from 2021 on. Unfortunately the COVID pandemic delayed things, but the total return since my article in 2016 with a Buy rating exceeds 400%....
Ternium: Trading At Less Than 3 Times EBITDA