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Is this Large Market Cap Stock target price reasonable for Ternium S.A. (NYSE:TX)?

The company in question is, Ternium S.A. (NYSE:TX) currently with a stock price of 20.06 (1.93% today). The market cap for Ternium S.A. is 3957.65, and is in the sector Basic Materials, and Steel & Iron industry. The target price for Ternium S.A. is 24.78. Currently Ternium S.A. is trading with a P/E of 26.28, and a forward P/E of 8.05. Average volume for Ternium S.A. is 318.35 and so far today it is 83417.

Performance in the last year for Ternium S.A. has been 39.29%. For EPS growth, Ternium S.A. has seen a growth of 104.10%, and is looking to grow in the next year to -3.86%. More long term stats show that EPS growth has been -57.80% over the last five years and could be 1.90% for the next five years. Ternium S.A. has seen sales growth quarter over quarter at -6.70%, with EPS growth quarter over quarter at 275.30%. The 20-day simple moving average is -1.80%, with the 200-day simple moving average coming to 13.79%.

Since the IPO date for Ternium S.A. on the 02/01/2006, Ternium S.A. has seen performance year to date to be 66.29%. With Ternium S.A. trading at 20.06, the dividend yield is 4.57%, and the EPS is 0.75.

So could Ternium S.A., be undervalued? Well as said before P/E is 26.28. The PEG is 13.83, P/S is 0.54 and the P/B is at 0.94. The P/cash is 10.36, with P/free cash flow at 6.24.

Ternium S.A. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 0.6. This is with long term debt/equity at 0.12, and total debt/equity at 0.37.

In terms of margins, Ternium S.A. has a gross margin of 21.10%, an operating margin of 11.40% and a profit margin of 2.00%.Payout ratio for Ternium S.A. is 120.20%. Return on assets come to 1.80% with return on investment coming to 7.80%.

Insider ownership for Ternium S.A., is at 0.10% and institutional ownership comes to 22.70%. Outstanding shares are at 201.1. While shares float is 198.51. The float short is currently 0.15%, and short ratio is 0.95.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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