TerniumTX +0.91%84 Interest Coverage is 5.78 as of Mar. 2026, which is 60% below its 10-year median of 14.38. GuruFocus rates TX with a GF Score™ of 84/100 and a GF Value™ of $36.54 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 458 Steel companies, Ternium ranks worse than 52.84% 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's
Operating Income
for the
three
months ended in Mar. 2026 was $290 Mil. Ternium's Interest Expense for the
three
months ended in Mar. 2026 was $-50 Mil.
Ternium's interest coverage for the quarter that ended in Mar. 2026 was 5.78.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Ternium's Interest Coverage or its related term are showing as below:
TX'
s Interest Coverage Range Over the Past 10 Years
Min: 3.38 Med: 14.38 Max: 195.68
Current: 4.2
TX's Interest Coverage is ranked worse than 52.84% of 458
companies
in the Steel industry
Industry Median: 4.445
vs TX: 4.20
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 Interest Coverage Related Terms
Ternium Interest Coverage Historical Data
* Premium members only.
The historical data trend for Ternium'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.
For the Steel subindustry, Ternium'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 Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Ternium's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ternium's Interest Coverage falls into.
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:
* 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.
Ternium (TX) has a Interest Coverage of 5.78 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ternium and its competitors. This is 60% below median its historical median of 14.38. Over the past decade, Ternium's Interest Coverage has ranged from 3.38 to 195.68. According to the industry distribution chart, Ternium ranks #242 out of 458 companies in the Steel industry, placing it in the top 52.8%.
Is Ternium's Interest Coverage too high?
Ternium's current Interest Coverage of 5.78 is 60% below median its 10-year median of 14.38. Over the past 10 years, this metric has ranged from a low of 3.38 to a high of 195.68. The Steel industry median Interest Coverage is 4.45. Ternium's value of 5.78 is 30% above this industry median. Based on the distribution chart, Ternium ranks #242 out of 458 companies in the Steel industry, which is below the industry midpoint. Overall, Ternium has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ternium's Interest Coverage compare to CLF and WS?
According to the Steel industry distribution chart, Ternium ranks #242 out of 458 companies for Interest Coverage. This places Ternium in the lower half of its industry. The industry median Interest Coverage is 4.45. Ternium's value of 5.78 is 30% above this benchmark. Historically, Ternium's own Interest Coverage has ranged from 3.38 to 195.68 over the past decade. While the company's 10-year median is 14.38 vs. the industry median of 4.45, Ternium 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 4.45, based on 458 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's current Interest Coverage of 5.78 is 30% 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 and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ternium's current Interest Coverage is 5.78, which is 60% below median its own 10-year median of 14.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ternium stock overvalued right now?
Based on GuruFocus' analysis, Ternium (TX) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.54, compared to a current price of $45.37 — trading 24.2% above its estimated fair value. The current Interest Coverage is 5.78, which is 60% below median its 10-year median of 14.38 and 30% above the Steel industry median of 4.45. Ternium's overall GF Score™ is 84/100 with 12 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 (TX), the current Interest Coverage is 5.78 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 (TX) Overvalued in 2026?
Based on GuruFocus' analysis, Ternium stock appears to be overvalued.
The current stock price of $45.37 is trading 24.2% above its estimated GF Value™ of $36.54.
GuruFocus considers Ternium to be Modestly Overvalued.
Key valuation signals for TX:
Interest Coverage: 5.78 (60% below median its 10-year median of 14.38)
GF Value™: $36.54 vs. price of $45.37 (24.2% above fair value)
Industry Position: 30% above the Steel median (#242 of 458)
No single metric tells the full story. See the TX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ternium SA 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 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 and geographically from Mexico.
84GF Score
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