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TX, Ternium S.A. Ternium S.A.

Steel capital-intensive Capital build-outCyclical

We cannot predict whether the central bank or the Brazilian government will continue to let the real float freely or will intervene in the exchange rate market through the return of a currency band system or otherwise.

Many of the countries which are important markets for us or in which we have substantial assets have a history of substantial government intervention in currency markets, volatile exchange rates and government-imposed currency controls.

While currently there are no significant exchange controls in Brazil, in the past, the Brazilian central bank has intervened occasionally to control unstable movements in foreign exchange rates including through the introduction of different exchange markets.

Latest annual: FY2025 20-F

TX · Ternium S.A. Ternium S.A.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$15.6B

−11.6% YoY · 12% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $15.6B 5-yr avg $16.7B

Gross margin 15% 5-yr avg 23%

Operating margin 4.5% 5-yr avg 14.7%

ROIC 3% 5-yr avg 19%

Owner-earnings margin 10% 5-yr avg 11%

Free cash flow margin −2% 5-yr avg 6%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is led by Hot rolled (41%) and Coated (34%), with 3 more lines behind.
Situation: Capital build-out. Capital spending has surged to 17% of sales, today's earnings are charged less depreciation than tomorrow's will be. Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 20% and operating margin about 12% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. The margin is cyclical, swinging between 4.5% and 33% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Inventory runs near 23% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the commodity price and the cost position. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 13%). By owner earnings: roughly 10% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 20-F →

Revenue spreads across 7 lines, the largest Hot rolled at 41%.

Revenue by product line, FY2025

Hot rolled41%$6.4B
Coated34%$5.3B
Cold rolled15%$2.4B
Other products6%$874M
Roll-formed and tubular3%$507M
Slabs1%$80M
Billets, round bars and others0%$57M

By geographyMexico47%Brazil26%Southern region15%Other markets13%

From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMDec 2025
											Income statement
$7.2B	$9.7B	$11.5B	$10.2B	$8.7B	$16.1B	$16.4B	$17.6B	$17.6B	$15.6B	$15.6B	RevenueRevenue
25%	24%	26%	17%	19%	39%	24%	20%	16%	15%	15%	Gross marginGross mgn
$1.1B	$1.5B	$2.1B	$865M	$1.1B	$5.3B	$2.7B	$2.2B	$1.3B	$705M	$705M	Operating incomeOp. inc.
15.8%	15.0%	18.4%	8.5%	12.4%	32.8%	16.4%	12.5%	7.2%	4.5%	4.5%	Operating marginOp. mgn
$596M	$886M	$1.5B	$564M	$778M	$3.8B	$1.8B	$676M	($54M)	$425M	$425M	Net incomeNet inc.
41%	28%	20%	26%	27%	27%	25%	33%	—	45%	45%	Effective tax rateTax rate
											Cash flow & returns
$1.1B	$384M	$1.7B	$1.6B	$1.8B	$2.7B	$2.8B	$2.5B	$1.9B	$2.3B	$2.3B	Operating cash flowOp. cash
$407M	$474M	$589M	$661M	$631M	$592M	$616M	$658M	$743M	$788M	$788M	DepreciationDeprec.
$97M	($977M)	($357M)	$422M	$352M	($1.7B)	$369M	$1.2B	$1.2B	$1.1B	$1.1B	Working capital & otherWC & other
$435M	$409M	$520M	$1.1B	$560M	$524M	$581M	$1.2B	$1.8B	$2.7B	$2.7B	CapexCapex
6.0%	4.2%	4.5%	10.3%	6.4%	3.3%	3.5%	6.8%	10.3%	17.0%	17.0%	Capex / revenueCapex/rev
$664M	($26M)	$1.2B	$987M	$1.2B	$2.2B	$2.2B	$1.8B	$1.2B	$1.5B	$1.5B	Owner earningsOwner earn.
9.2%	−0.3%	10.6%	9.7%	13.8%	13.4%	13.2%	10.5%	6.6%	9.8%	9.8%	Owner earnings marginOE mgn
$664M	($26M)	$1.2B	$595M	$1.2B	$2.2B	$2.2B	$1.3B	$85M	($345M)	($345M)	Free cash flowFCF
9.2%	−0.3%	10.6%	5.8%	13.8%	13.4%	13.2%	7.4%	0.5%	−2.2%	−2.2%	Free cash flow marginFCF mgn
$177M	$196M	$216M	$236M	$0	$569M	$530M	$569M	$609M	$530M	$569M	Dividends paidDiv. paid
12%	13%	21%	8%	9%	36%	18%	—	—	3%	3%	ROICROIC
14%	18%	24%	9%	11%	36%	15%	5%	-0%	4%	4%	Return on equityROE
10%	14%	20%	5%	11%	31%	10%	1%	−6%	−1%	−1%	Retained to equityRetained/eq
											Balance sheet
$328M	$471M	$295M	$732M	$1.4B	$2.6B	$3.5B	$3.8B	$3.9B	$3.1B	$3.1B	Cash & investmentsCash+inv
$634M	$1.0B	$1.1B	$950M	$918M	$1.8B	$1.2B	$2.1B	$1.6B	$1.5B	$1.5B	ReceivablesReceiv.
$1.6B	$2.6B	$2.7B	$2.2B	$2.0B	$3.9B	$3.5B	$4.9B	$4.8B	$4.1B	$4.1B	InventoryInvent.
$2.3B	$3.6B	$3.8B	$3.1B	$2.9B	$5.7B	$4.7B	$7.0B	$6.3B	$5.6B	$5.6B	Operating working capitalOper. WC
$2.7B	$4.4B	$4.4B	$4.2B	$4.6B	$8.6B	$8.8B	$12.0B	$11.1B	$9.8B	$9.8B	Current assetsCur. assets
$1.8B	$2.8B	$1.8B	$1.8B	$1.9B	$3.2B	$2.2B	$3.8B	$3.8B	$3.9B	$3.9B	Current liabilitiesCur. liab.
1.5×	1.6×	2.4×	2.4×	2.5×	2.7×	4.0×	3.2×	2.9×	2.5×	2.5×	Current ratioCurr. ratio
$8.3B	$12.1B	$12.5B	$12.9B	$12.9B	$17.1B	$17.5B	$24.2B	$23.1B	$23.6B	$23.6B	Total assetsAssets
$1.2B	$3.2B	$2.0B	$2.2B	$1.7B	$1.5B	$1.0B	$2.1B	$2.2B	$2.4B	$2.4B	Total debtDebt
$890M	$2.8B	$1.7B	$1.5B	$371M	($1.1B)	($2.5B)	($1.7B)	($1.6B)	($712M)	($712M)	Net debt / (cash)Net debt
12.7×	12.7×	16.1×	9.8×	23.1×	195.2×	57.8×	17.5×	6.4×	3.3×	3.3×	Interest coverageInt. cov.
$4.4B	$5.0B	$6.4B	$6.6B	$7.3B	$10.5B	$11.8B	$12.4B	$12.0B	$11.9B	$11.9B	Shareholders’ equityEquity
											Per share
1.96B	1.96B	1.96B	1.96B	1.96B	1.96B	1.96B	1.96B	1.96B	1.96B	1.96B	Shares out (diluted)Shares
$3.68	$4.94	$5.84	$5.19	$4.45	$8.20	$8.36	$8.97	$8.99	$7.95	$7.95	Revenue / shareRev/sh
$0.30	$0.45	$0.77	$0.29	$0.40	$1.95	$0.90	$0.34	$-0.03	$0.22	$0.22	EPS (diluted)EPS
$0.34	$-0.01	$0.62	$0.50	$0.61	$1.10	$1.11	$0.94	$0.59	$0.78	$0.78	Owner earnings / shareOE/sh
$0.34	$-0.01	$0.62	$0.30	$0.61	$1.10	$1.11	$0.66	$0.04	$-0.18	$-0.18	Free cash flow / shareFCF/sh
$0.09	$0.10	$0.11	$0.12	$0.00	$0.29	$0.27	$0.29	$0.31	$0.27	$0.29	Dividends / shareDiv/sh
$0.22	$0.21	$0.27	$0.54	$0.29	$0.27	$0.30	$0.61	$0.93	$1.35	$1.35	Cap. spending / shareCapex/sh
$2.24	$2.55	$3.26	$3.37	$3.71	$5.37	$6.03	$6.33	$6.10	$6.08	$6.08	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+8.9%/yr	+12.3%/yr
Owner earnings / share	+9.7%/yr	+4.9%/yr
EPS	−3.7%/yr	−11.4%/yr
Dividends / share	+13.0%/yr	—
Capital spending / share	+22.3%/yr	+36.6%/yr
Book value / share	+11.8%/yr	+10.4%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

2Bpeak FY2016

ROIC

3%low FY2025

Gross margin

15%low FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$1.5Bowner earningsvs.$425Mnet incomelow FY2017

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $1.5B of owner earnings, the operating cash left after the $788M it takes just to hold its position. It put $1.9B more into growth; free cash flow, after that spending, was ($345M).

Reported net income$425M

Owner earnings$1.5B · 10% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$425M	($54M)	$676M	$1.8B	$3.8B
Depreciation & amortizationnon-cash charge added back	+$788M	+$743M	+$658M	+$616M	+$592M
Working capital & othertiming of cash in and out, other non-cash items	+$1.1B	+$1.2B	+$1.2B	+$369M	−$1.7B
Cash from operations	$2.3B	$1.9B	$2.5B	$2.8B	$2.7B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$788M	−$743M	−$658M	−$581M	−$524M
Owner earnings	$1.5B	$1.2B	$1.8B	$2.2B	$2.2B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$1.9B	−$1.1B	−$544M	—	—
Free cash flow	($345M)	$85M	$1.3B	$2.2B	$2.2B
Owner-earnings marginowner earnings ÷ revenue	10%	7%	10%	13%	13%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $788M, roughly its depreciation, the rate its assets wear out). The other $1.9B of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 3.3×

Adequate

Operating income $705M ÷ interest expense $214M

What this means
Comfortable in a normal year, but below the margin of safety Graham looked for. Worth checking how stable the coverage has been across a full cycle.
How heavy is the debt, net of cash? +$712M

Net cash

Cash $1.5B + ST investments $1.6B − debt $2.4B

What this means
Cash and short-term investments exceed every dollar of debt by $712M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 12%

Solid through the cycle

8-yr median, range 3%–36%; 3% latest = NOPAT $389M ÷ invested capital $12.8B

Industry peers: median 6%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 8 years (it ran 3% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 10%

Solid through the cycle

10-yr median margin, range -0%–14%; latest $1.5B = operating cash $2.3B − maintenance capex $788M

Industry peers: median 6%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 10% of revenue this year, a 10% median across 10 years. It chose to put $1.9B more into growth, so free cash flow this year was ($345M) — the gap is investment, not weakness.
Are earnings backed by cash? 5.44×

Cash-backed

Cash from ops $2.3B ÷ net income $425M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 37%

Reinvests most of it

Dividends + buybacks $569M ÷ Owner Earnings $1.5B

What this means
Of $1.5B Owner Earnings, $569M (37%) went back to shareholders, $569M dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 3.37×

Expanding

Capex $2.7B ÷ depreciation $788M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $15.6B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.49×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $2.4B vs $5.9B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Near

A profit every year (10-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Near

Uninterrupted dividends · 9 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Miss

Earnings +33% over the record · −65%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.17/share (latest year $0.21), the averaged base the calculator's gate runs on, and book value is $5.96/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 10

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 3 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 16% → 8% (3-yr avg ends)

What this means
Through the cycle the operating margin slipped — about 16% early to 8% lately, median 12% — competition or costs are biting in.
Reinvestment, incremental ROIC −6%

What this means
Reinvested capital came back at a negative incremental return over this window — the invested base grew while operating profit did not. The filings show where it went.
Owner earnings growth +17%/yr

What this means
Owner earnings grew about 17% a year over the record.
Worst year 2025 · 4.5% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count +0.0%/yr

What this means
Roughly flat share count, little dilution, little buyback.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.
How management talks about it Owner’s terms

What this means
The record and the register agree: capital is compounding and the filing reasons in an owner’s terms — per-share value, return on capital, the long term — not a promoter’s.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2025

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$9.8B

Cash & short-term investments$3.1B
Receivables$1.5B
Inventory$4.1B
Other current assets$1.0B

Current liabilities$3.9B

Debt due within a year$604M
Other current liabilities$3.3B

Current ratio2.49×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.45×stricter: inventory excluded

Cash ratio0.80×strictest: cash alone against what's due

Working capital$5.9Bthe cushion left after near-term bills

Debt due this year vs. cash$604M due · $3.1B cash covered by cash on hand, no refinancing forced · both figures from the Dec 31, 2025 balance sheet

Deeper floors

Tangible book value$11.9Bequity stripped of goodwill & intangibles

Net current asset value$2.3BGraham's net-net: current assets less all liabilities

Debt incl. operating leases$2.6B$187M of it operating leases

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $18.8B of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$9.8B · 52%
Dividends$3.6B · 19%
Retained (debt / cash)$5.4B · 29%

Returned to owners$3.6B
28% of the owner earnings the business produced over the span, $3.6B as dividends and $0 as buybacks.
Net change in share count0.0%
The diluted count barely moved (1963M to 1963M): buybacks roughly offset the stock issued to staff.
Dividend record$0.27/sh
Paid in 9 of the years on record, the per-share dividend growing about 13% a year. It was cut at least once along the way.
Return on what it retained12%
Of the earnings it kept rather than paid out ($7.3B over the span), annual owner earnings (first three years vs last three) grew $891M, so each retained $1 added about 0.12 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Inverting the record

Invert: instead of why Ternium S.A. Ternium S.A. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

None of the 5 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Steel

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
NUENucor Corporation	$32.5B	13%	9.2%	12%	9%
STLDSteel Dynamics Inc.	$18.2B	16%	11.2%	17%	9%
XUnited States Steel	$15.6B	8%	3.0%	3%	3%
GLWCorning Incorporated	$15.6B	36%	12.7%	6%	7%
TXTernium S.A. Ternium S.A.	$15.6B	22%	13.7%	13%	10%
AAAlcoa	$12.8B	—	4.6%	5%	2%
CMCCommercial Metals	$7.8B	16%	5.7%	9%	6%
CRSCarpenter Technology	$2.9B	17%	6.0%	5%	5%
Group median	—	16%	7.6%	7%	6%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the home-market price, not the US ADR quote. Ternium S.A. Ternium S.A. reports in USD, and every figure here (owner earnings, book value, the share count) is on that ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share. A US ADR price in dollars bundles the ADR-to-ordinary ratio, so it will not reconcile with these figures and would throw the multiple off.

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Ternium S.A. Ternium S.A. has delivered.

Ternium S.A. Ternium S.A.’s latest year shows negative owner earnings, the mark of a build-out: total capital spending outruns the cash the business throws off today. So the tool opens on the steady-state base (maintenance capex in place of the build-out spend), the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Ternium S.A. Ternium S.A. earns about $1.6B on its 10.1% median owner-earnings margin. This year’s 9.8% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($1.6B) Net of stock comp Steady-state · maintenance capex ($1.5B)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−11%/yr

Owner-earnings growth · ’16→’25+17%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow ($345M) on 2005M shares outstanding, per the 20-F cover, as of 2025-12-31; net cash $712M. The base opens on the steady-state figure (the latest year is negative on total capex mid-build-out); clear Steady-state to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($2.7B) runs well above depreciation ($788M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $1.5B, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh TX against another business →

Cite: Owner Scorecard, "Ternium S.A. Ternium S.A. (TX), the owner's record," https://ownerscorecard.com/c/TX, data as of 2026-07-09.

Manual order: ← TWG its page in the Manual UCAR →

Industry order: ← TWI the Steel chapter WS →