Ternium Argentina (BUE:TXAR) Interest Coverage: 10.35 (As of Mar. 2026) — 13% Above Median

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BUE:TXAR Ternium Argentina SA BUE:TXAR
82 GF Score
Price ARS664.50
GF Value ARS1,420.58
Valuation Significantly Undervalued
! 5 Warning Signs
View Full Analysis

What is Ternium Argentina Interest Coverage?

Ternium Argentina BUE:TXAR -0.97% 82 Interest Coverage is 10.35 as of Mar. 2026, which is 13% above its 10-year median of 9.13. GuruFocus rates BUE:TXAR with a GF Score™ of 82/100 and a GF Value™ of ARS1,420.58 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 457 Steel companies, Ternium Argentina ranks better than 61.05% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ternium Argentina's Operating Income for the three months ended in Mar. 2026 was ARS15,465 Mil. Ternium Argentina's Interest Expense for the three months ended in Mar. 2026 was ARS-1,494 Mil. Ternium Argentina's interest coverage for the quarter that ended in Mar. 2026 was 10.35. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ternium Argentina's Interest Coverage or its related term are showing as below:

BUE:TXAR' s Interest Coverage Range Over the Past 10 Years
Min: 1.35   Med: 9.13   Max: 166.61
Current: 7.26


BUE:TXAR's Interest Coverage is ranked better than
61.05% of 457 companies
in the Steel industry
Industry Median: 4.41 vs BUE:TXAR: 7.26

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Ternium Argentina  (BUE:TXAR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Ternium Argentina Interest Coverage Related Terms


Ternium Argentina Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ternium Argentina's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Ternium Argentina Interest Coverage Chart

Ternium Argentina Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 166.61 81.46 97.51 0.00 4.16

Ternium Argentina Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.53 14.44 28.68 10.35

BUE:TXAR vs NUE, STLD, RS: Interest Coverage Comparison

For the Steel subindustry, Ternium Argentina's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ternium Argentina Interest Coverage vs Steel Industry

For the Steel industry and Basic Materials sector, Ternium Argentina's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ternium Argentina's Interest Coverage falls into.


BUE:TXAR
82GF Score
Ternium Argentina SA BUE:TXAR
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ternium Argentina Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ternium Argentina's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Ternium Argentina's Interest Expense was ARS-16,053 Mil. Its Operating Income was ARS66,719 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS61,096 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*66719/-16053
=4.16

Ternium Argentina's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Ternium Argentina's Interest Expense was ARS-1,494 Mil. Its Operating Income was ARS15,465 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS77,727 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*15465/-1494
=10.35

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 10.35 mean?
Ternium Argentina (BUE:TXAR) has a Interest Coverage of 10.35 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ternium Argentina and its competitors. This is 13% above median its historical median of 9.13. Over the past decade, Ternium Argentina's Interest Coverage has ranged from 1.35 to 166.61. According to the industry distribution chart, Ternium Argentina ranks #178 out of 457 companies in the Steel industry, placing it in the top 38.9%.
Is Ternium Argentina's Interest Coverage too high?
Ternium Argentina's current Interest Coverage of 10.35 is 13% above median its 10-year median of 9.13. Over the past 10 years, this metric has ranged from a low of 1.35 to a high of 166.61. The Steel industry median Interest Coverage is 4.41. Ternium Argentina's value of 10.35 is 134.7% above this industry median. Based on the distribution chart, Ternium Argentina ranks #178 out of 457 companies in the Steel industry, which is above the industry midpoint. Overall, Ternium Argentina has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ternium Argentina's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Ternium Argentina ranks #178 out of 457 companies for Interest Coverage. This puts Ternium Argentina in the upper half of its industry. The industry median Interest Coverage is 4.41. Ternium Argentina's value of 10.35 is 134.7% above this benchmark. Historically, Ternium Argentina's own Interest Coverage has ranged from 1.35 to 166.61 over the past decade. While the company's 10-year median is 9.13 vs. the industry median of 4.41, Ternium Argentina has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Steel company?
The median Interest Coverage among Steel companies is 4.41, based on 457 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ternium Argentina's current Interest Coverage of 10.35 is 134.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ternium Argentina and its competitors. For the Steel industry, the median Interest Coverage is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ternium Argentina's current Interest Coverage is 10.35, which is 13% above median its own 10-year median of 9.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ternium Argentina stock overvalued right now?
Based on GuruFocus' analysis, Ternium Argentina (BUE:TXAR) is currently considered Significantly Undervalued. The stock's GF Value™ is ARS1,420.58, compared to a current price of ARS664.50 — trading 53.2% below its estimated fair value. The current Interest Coverage is 10.35, which is 13% above median its 10-year median of 9.13 and 134.7% above the Steel industry median of 4.41. Ternium Argentina's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Ternium Argentina (BUE:TXAR), the current Interest Coverage is 10.35 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ternium Argentina (BUE:TXAR) Overvalued in 2026?

Based on GuruFocus' analysis, Ternium Argentina stock appears to be undervalued. The current stock price of ARS664.50 is trading 53.2% below its estimated GF Value™ of ARS1,420.58. GuruFocus considers Ternium Argentina to be Significantly Undervalued.

Key valuation signals for BUE:TXAR:

  • Interest Coverage: 10.35 (13% above median its 10-year median of 9.13)
  • GF Value™: ARS1,420.58 vs. price of ARS664.50 (53.2% below fair value)
  • GF Score™: 82/100 with 5 warning signs
  • Industry Position: 134.7% above the Steel median (#178 of 457)

No single metric tells the full story. See the BUE:TXAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ternium Argentina Business Description

Address Avenida Leandro N. Alem 1067, Building AAF, Buenos Aires, ARG, C1001
Ternium Argentina SA manufactures and processes a broad range of steel products. Its products include hot and cold rolled, hot-dip galvanized & electro-galvanized and pre-painted steel sheets and tinplate. Geographically the group is based in Argentina.
82GF Score

Get the complete analysis for BUE:TXAR

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

ARS664.50
Price
ARS1,420.58
GF Value