Grupo Simec, S.A. de C.V. (SIM) vs Ternium S.A. (TX)

Grupo Simec, S.A. de C.V. and Ternium S.A. are both Steel companies. Ternium S.A. is the larger, with a market value of $10.9B against $5.0B — 2.2× the size. Ternium S.A. trades at the lower P/E: 15.6× against 24.0×. Grupo Simec, S.A. de C.V. grew revenue faster over the last twelve months: 7.58% against −1.43%. Grupo Simec, S.A. de C.V. has the higher net margin (11.2% vs 4.37%) and the higher return on invested capital (9.61% vs 4.39%). Across the 21 metrics below, Grupo Simec, S.A. de C.V. leads on 12 and Ternium S.A. on 9.

Valuation

Metric SIM TX Steel median
P/E 24.04 15.58 21.10
P/S 2.78 0.68 0.70
P/B 1.39 0.65 1.39
Price to free cash flow n/m n/m 23.71
EV/EBITDA 9.19 5.64 10.71
EV/Sales 1.88 0.70 0.85
Earnings yield 4.16% 6.42% 4.56%
Free cash flow yield (1.22%) (4.32%) 0.00%

Profitability

Metric SIM TX Steel median
Gross margin 25.34% 17.75% 13.91%
Operating margin 16.91% 7.45% 4.77%
Net margin 11.21% 4.37% 3.40%
Free cash flow margin (3.37%) (2.94%) 0.00%
Return on equity 6.01% 4.20% 2.21%
Return on assets 5.03% 2.89% 1.83%
Return on invested capital 9.61% 4.39% 2.52%

Growth

Metric SIM TX Steel median
Revenue growth (TTM) 7.58% (1.43%) 11.33%
EPS growth (last fiscal year) (87.37%) 903.70% —
Revenue growth, 5-year CAGR (1.23%) 12.31% 6.73%
Net income growth, 5-year CAGR (9.86%) (11.39%) 0.00%

Health

Metric SIM TX Steel median
Debt to equity 0.00 0.18 0.22
Current ratio 5.78 2.58 2.58
Net debt to EBITDA (4.54) (0.41) 0.10

Dividend

Metric SIM TX Steel median
Dividend yield — 7.42% 2.48%
Payout ratio 0.00 0.44 0.04

Size

Metric SIM TX Steel median
Market cap 4.96b 10.90b 1.46b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack