Ternium S.A. (TX) vs Worthington Steel, Inc. (WS)

Ternium S.A. and Worthington Steel, Inc. are both Steel companies. Ternium S.A. is the larger, with a market value of $9.6B against $1.8B — 5.2× the size. Worthington Steel, Inc. has negative trailing earnings, so its P/E is not meaningful; Ternium S.A. trades at 9.1×. Worthington Steel, Inc. grew revenue faster over the last twelve months: 69.1% against 6.25%. Ternium S.A. has the higher net margin (5.74% vs −0.72%) and the higher return on invested capital (5.65% vs 0.11%). Both pay a dividend; Ternium S.A. yields more (4.51% vs 1.76%). Across the 19 metrics below, Ternium S.A. leads on 15 and Worthington Steel, Inc. on 4.

Valuation

Metric TX WS Steel median
P/E 9.14 n/m 16.37
P/S 0.57 0.34 0.70
P/B 0.57 1.11 1.10
Price to free cash flow n/m 22.15 22.15
EV/EBITDA 4.92 38.56 8.16
EV/Sales 0.58 0.71 0.79
Earnings yield 10.94% (2.10%) 5.02%
Free cash flow yield (0.88%) 4.51% 0.00%

Profitability

Metric TX WS Steel median
Gross margin 19.57% 10.37% 13.96%
Operating margin 9.31% 0.12% 6.93%
Net margin 5.74% (0.72%) 3.14%
Free cash flow margin (0.50%) 1.55% 0.00%
Return on equity 0.00% (2.67%) 2.21%
Return on assets 3.93% (0.93%) 1.83%
Return on invested capital 5.65% 0.11% 3.18%

Growth

Metric TX WS Steel median
Revenue growth (TTM) 6.25% 69.13% 15.40%
EPS growth (last fiscal year) 903.70% (92.24%) (18.80%)
Revenue growth, 5-year CAGR 12.31% — 7.46%
Net income growth, 5-year CAGR (11.39%) — 0.00%

Health

Metric TX WS Steel median
Debt to equity 0.19 1.35 0.25
Current ratio 2.55 1.81 2.56
Net debt to EBITDA (0.41) 2.15 0.10

Dividend

Metric TX WS Steel median
Dividend yield 4.51% 1.76% 1.20%
Payout ratio 0.41 1.81 0.36

Size

Metric TX WS Steel median
Market cap 9.55b 1.84b 2.07b

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