Ternium S.A. (NYSE:TX) Raises Dividend to $1.80 Per Share

Ternium S.A. (NYSE:TX) declared a semi-annual dividend on Wednesday, February 19th,Wall Street Journal reports. Investors of record on Friday, May 9th will be given a dividend of 1.80 per share by the basic materials company on Wednesday, May 14th. This represents a yield of 10.3%. The ex-dividend date of this dividend is Friday, May 9th. This is a boost from Ternium’s previous semi-annual dividend of $0.09.

Ternium has increased its dividend by an average of 2.3% per year over the last three years. Ternium has a payout ratio of 28.0% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Ternium to earn $4.37 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 41.2%.

Ternium Price Performance

NYSE TX traded down $1.27 during trading on Wednesday, hitting $30.10. 436,324 shares of the stock traded hands, compared to its average volume of 245,065. Ternium has a 12-month low of $28.00 and a 12-month high of $44.44. The company has a market capitalization of $5.91 billion, a P/E ratio of 75.25, a price-to-earnings-growth ratio of 0.39 and a beta of 1.76. The firm has a 50-day simple moving average of $29.57 and a 200-day simple moving average of $32.66. The company has a quick ratio of 1.67, a current ratio of 2.92 and a debt-to-equity ratio of 0.11.

Ternium (NYSE:TX) last announced its earnings results on Tuesday, February 18th. The basic materials company reported ($0.42) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.97 by ($1.39). The business had revenue of $3.88 billion for the quarter, compared to analysts’ expectations of $4.18 billion. Ternium had a net margin of 0.42% and a return on equity of 4.70%. As a group, analysts predict that Ternium will post 3.58 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on TX shares. StockNews.com downgraded shares of Ternium from a “buy” rating to a “hold” rating in a research note on Thursday, November 14th. The Goldman Sachs Group dropped their price objective on shares of Ternium from $45.00 to $39.00 and set a “buy” rating on the stock in a report on Thursday, February 6th.

About Ternium

Ternium SA, together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products.