Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Ternium S.A. (NYSE: TX) is a producer of steel products. The Company produces finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers, steel processors or end users. The Company operates in two segments: Steel and Mining.

Kalkine’s US Dividend Income Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

  Stock Performance:

• TX has been corrected by 10.71% in the past three months, on the other hand 5.46% of return in the past six months.

• The stock is leaning towards its lower band of its 52-week range of USD 45.81 and 52-week low price of USD 28.47. Post the announcement of Q3FY23 results the stock has corrected by around 3.37%, with currently price near a support zone of USD 35-USD 36.
• The price is currently trading below its long-term (200-day) SMA and its short-term (50-day) SMA, with the current oversold RSI of around 41.36.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

A higher current ratio for the company denotes better short-term working capital liquidity. It also proves that a business has access to sufficient liquid short-term assets to pay down all current short-term debt, if necessary.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~10.16% of the total shareholding, signifying concentrated shareholding. Operadora Inbursa de Sociedades de Inversión, S.A. de C.V. and Acadian Asset Management LLC, Inc. are the biggest shareholders, holding the maximum stake in the company at ~2.18% and ~2.08%, respectively.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q3FY23:

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

  Stock Performance:

• TX has been corrected by 10.71% in the past three months, on the other hand 5.46% of return in the past six months.

• The stock is leaning towards its lower band of its 52-week range of USD 45.81 and 52-week low price of USD 28.47. Post the announcement of Q3FY23 results the stock has corrected by around 3.37%, with currently price near a support zone of USD 35-USD 36.
• The price is currently trading below its long-term (200-day) SMA and its short-term (50-day) SMA, with the current oversold RSI of around 41.36.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 07, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.