Steel Dynamics, Inc. (STLD) vs Ternium S.A. (TX)

Steel Dynamics, Inc. and Ternium S.A. are both Steel companies. Steel Dynamics, Inc. is the larger, with a market value of $33.7B against $10.9B — 3.1× the size. Ternium S.A. trades at the lower P/E: 15.6× against 21.1×. Steel Dynamics, Inc. grew revenue faster over the last twelve months: 19.8% against −1.43%. Steel Dynamics, Inc. has the higher net margin (7.83% vs 4.37%) and the higher return on invested capital (10.0% vs 4.39%). Both pay a dividend; Ternium S.A. yields more (7.42% vs 1.44%). Across the 22 metrics below, Steel Dynamics, Inc. leads on 11 and Ternium S.A. on 11.

Valuation

Metric STLD TX Steel median
P/E 21.10 15.58 21.10
P/S 1.64 0.68 0.70
P/B 3.65 0.65 1.39
Price to free cash flow 35.24 n/m 23.71
EV/EBITDA 13.94 5.64 10.71
EV/Sales 1.82 0.70 0.85
Earnings yield 4.74% 6.42% 4.56%
Free cash flow yield 2.84% (4.32%) 0.00%

Profitability

Metric STLD TX Steel median
Gross margin 14.65% 17.75% 13.91%
Operating margin 10.01% 7.45% 4.77%
Net margin 7.83% 4.37% 3.40%
Free cash flow margin 4.65% (2.94%) 0.00%
Return on equity 17.94% 4.20% 2.21%
Return on assets 9.84% 2.89% 1.83%
Return on invested capital 10.01% 4.39% 2.52%

Growth

Metric STLD TX Steel median
Revenue growth (TTM) 19.77% (1.43%) 11.33%
EPS growth (last fiscal year) (18.80%) 903.70% —
Revenue growth, 5-year CAGR 13.61% 12.31% 6.73%
Net income growth, 5-year CAGR 16.57% (11.39%) 0.00%

Health

Metric STLD TX Steel median
Debt to equity 0.45 0.18 0.22
Current ratio 3.18 2.58 2.58
Net debt to EBITDA 1.70 (0.41) 0.10

Dividend

Metric STLD TX Steel median
Dividend yield 1.44% 7.42% 2.48%
Payout ratio 0.09 0.44 0.04

Size

Metric STLD TX Steel median
Market cap 33.71b 10.90b 1.46b

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