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Ternium S.A., with the ticker TX, is a mid-cap steel company operating in the materials business sector. This is my second report on Ternium S.A. for my Viital portfolio. I last reported on TX on April 14th.

Ternium S.A. is a flat steel producer operating in Mexico, Brazil, Argentina, Colombia, the southern United States, and Central America.

It produces finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers and steel processors, or to end-users. The company operates in two segments: Steel and Mining.

In its steel segment, the company produces slabs, billets & round bars, hot-rolled coils & sheets, bars & stirrups, wire rods, steel pipes, and other products.

The Mining segment sells iron ore as concentrates (fines) and pellets. The vast majority of its revenue comes from the steel segment.

Its geographical segments are Mexico, the Southern region, Brazil & Other markets.

It serves various companies and small businesses in the construction, automotive, home appliances, agro, packaging, transport, and energy industries.

The company was founded in 1961 and is based in Luxembourg City, Luxembourg. Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.

Three key data points gauge any dividend equity or fund such as Ternium S.A. (TX).

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

TX Price

Ternium’s price per share was $35.05 as of yesterday's market close. One year ago its price was $39.26. Thus, Ternium’s share price fell $4.21 or about 10.7% in the past year.

If Ternium’s stock trades in the range of $25.00 to $55.00 this next year, its recent $35.05 share price might rise by $1.65 to reach $36.70 by July 6, 2023. My $1.65 upside estimate is  equal to the average annual price increase for TX shares over the past ten years. It is also $17.76 under the median of one year price estimates from thirteen analysts covering TX.
 

TX Dividends

Ternium’s most recently declared semi-annual dividend of $1.80 was paid May 16, to shareholders on record as of May 5th.

Since 2010 Ternium has paid annual variable dividends, ranging from $0.50 to $2.10 in 2021. The recent forward looking dividend of $2.60 equates to an annual yield of 7.42% as of yesterdays share price of $35.05.
 

TX Returns

Adding the $2.60 Ternium annual forward dividend to my estimated one-year price upside estimate of $1.65 shows a $4.25 potential gross gain, per share, to be reduced by any costs to trade TX shares.

At Friday's $35.05 closing price, a little over $1000 would buy 29 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.34 per share.

Subtract that maybe $0.34 brokerage cost from my estimated $4.25 gross gain estimate per share results in a net gain of $3.91 X 29 shares = $113.39. for a 11.3% net gain including a 7.42% forward looking annual dividend yield.

So is that Ternium S.A. shows a possible 11.3% net gain including a 7.42% forward-looking dividend yield.

Over the next year at this time our $1000 investment in Ternium S.A. shares would generate $74.20 in cash dividends. Of course, a single share of TX stock bought at yesterday's $35.05 price less that half  the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up TX shares based on their forward looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 2.12 times  more than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Ternium S.A. Only time and money invested in this stock will determine its market value.

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