Nucor Corporation (NUE) vs Ternium S.A. (TX)

Nucor Corporation and Ternium S.A. are both Steel companies. Nucor Corporation is the larger, with a market value of $55.7B against $9.6B — 5.8× the size. Ternium S.A. trades at the lower P/E: 9.1× against 15.1×. Nucor Corporation grew revenue faster over the last twelve months: 21.8% against 6.25%. Nucor Corporation has the higher net margin (9.24% vs 5.74%) and the higher return on invested capital (11.7% vs 5.65%). Both pay a dividend; Ternium S.A. yields more (4.51% vs 0.91%). Across the 22 metrics below, Ternium S.A. leads on 13 and Nucor Corporation on 9.

Valuation

Metric NUE TX Steel median
P/E 15.05 9.14 16.37
P/S 1.44 0.57 0.70
P/B 2.32 0.57 1.10
Price to free cash flow 20.77 n/m 22.15
EV/EBITDA 10.46 4.92 8.16
EV/Sales 1.53 0.58 0.79
Earnings yield 6.64% 10.94% 5.02%
Free cash flow yield 4.81% (0.88%) 0.00%

Profitability

Metric NUE TX Steel median
Gross margin 17.31% 19.57% 13.96%
Operating margin 13.29% 9.31% 6.93%
Net margin 9.24% 5.74% 3.14%
Free cash flow margin 6.94% (0.50%) 0.00%
Return on equity 15.59% 0.00% 2.21%
Return on assets 9.81% 3.93% 1.83%
Return on invested capital 11.71% 5.65% 3.18%

Growth

Metric NUE TX Steel median
Revenue growth (TTM) 21.79% 6.25% 15.40%
EPS growth (last fiscal year) (11.11%) 903.70% (18.80%)
Revenue growth, 5-year CAGR 10.04% 12.31% 7.46%
Net income growth, 5-year CAGR 19.36% (11.39%) 0.00%

Health

Metric NUE TX Steel median
Debt to equity 0.29 0.19 0.25
Current ratio 2.46 2.55 2.56
Net debt to EBITDA 1.07 (0.41) 0.10

Dividend

Metric NUE TX Steel median
Dividend yield 0.91% 4.51% 1.20%
Payout ratio 0.14 0.41 0.36

Size

Metric NUE TX Steel median
Market cap 55.74b 9.55b 2.07b

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