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Ternium SA (TX) is a flat steel producer operating in Mexico, Brazil, Argentina, Colombia, the southern United States, and Central America.It produces finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers and steel processors or end-users.The company operates in two segments: Steel, Usiminas and Mining. In its steel segment, the company produces slabs, billets & round bars, hot-rolled coils & sheets, bars & stirrups, wire rods, steel pipes, and other products.The Mining segment sells iron ore as concentrates (fines) and pellets. The Usiminas segment include iron ore extraction, steel transformation, production of capital goods and logistics.The vast majority of its revenue comes from the steel segment and geographically from Mexico.Ternium S.A. was founded in 1961 and is based in Luxembourg City, Luxembourg.Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.Three key data points gauge Ternium or any dividend paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys also best tell whether any company has made, is making, and will make money.
TX Price
Over the past year, Ternium share price fell about 10% from $38.82 to $37.46 as of Tuesday’s market close.If Ternium shares trade in the range of $25.00 to $55.00 this next year, its recent $37.46 share price might rise to $45.00 by next year. Of course, TX price could also drop about the same $7.54 estimated amount, or more.My $7.54 upside estimate is $5.09 under the median of 1 year target estimates from 11 analysts tracking Ternium for brokers.TX DividendTernium has paid Annual dividends since June, 2007 and converted to Semi-annual variable dividends since May 2022.Ternium’s most recent SA dividend of $2.20 was declared February 20thfor shareholders of record May 2nd and the dividend was paid May 13th.A forward looking $3.30 annual dividend yields 8.81% at Tuesday’s closing share price.
TX Returns
To put it all together, add the Ternium projected annual dividend of $3.30 to the estimated price upside of $7.54 to get a $10.84 estimated gross gain per share for the coming year.At Tuesday’s $37.46 share price, a little over $1000 would buy 27 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, could cost us about $0.37 per share.Subtracting that likely $0.37 brokerage cost from the $10.84 estimated gross gain reveals a net gain of $10.47 X 27 shares = $282.69 for about a 28% estimated net gain on the year.Furthermore, the $88.10 annual dividend income from $1K invested is over 2.35 times more than the $37.46 single share price. By these numbers,TX is an ideal dividend dog.You might choose to pounce on Ternium. It is a 63 year-old dividend-paying Luxembourg- based steel and iron-ore company that has an 17 year track record paying annual and semi-annual variable dividends.The exact track of Ternium future price and dividend will entirely be determined by market action.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: Suzano
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