TX (Ternium) Moat Score: 4/10 (As of Jun. 27, 2026)


TX Ternium SA TX
84 GF Score
Price $44.44
GF Value $36.54
Valuation Modestly Overvalued
! 10 Warning Signs
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What is Ternium Moat Score?

Ternium TX -2.05% 84 Moat Score is 4 as of Jun. 27, 2026. GuruFocus rates TX with a GF Score™ of 84/100 and a GF Value™ of $36.54 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 647 Steel companies, Ternium ranks better than 95.83% on this metric.

Ternium has the Moat Score of 4, which implies that the company might have Narrow Moat - Discernible but modest moat.

Ternium has Narrow Moat: Ternium SA benefits from economies of scale and a strong distribution network in the steel industry. However, it faces intense competition and lacks significant pricing power, resulting in a modest moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Ternium might have Narrow Moat - Discernible but modest moat.

Ternium  (NYSE:TX) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Ternium Moat Score Related Terms

TX vs CLF, WS, NWPX: Moat Score Comparison

For the Steel subindustry, Ternium's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Steel Industry

For the Steel industry and Basic Materials sector, Ternium's Moat Score distribution charts can be found below:

* The bar in red indicates where Ternium's Moat Score falls into.


TX
84GF Score
Ternium SA TX
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 4 mean?
Ternium (TX) has a Moat Score of 4 as of Jun. 27, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Ternium ranks #27 out of 647 companies in the Steel industry, placing it in the top 4.2%.
Is Ternium's Moat Score too high?
Ternium's current Moat Score is 4. Based on the distribution chart, Ternium ranks #27 out of 647 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. 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 Moat Score compare to CLF and WS?
According to the Steel industry distribution chart, Ternium ranks #27 out of 647 companies for Moat Score. This places Ternium in the top 4% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Steel company?
A good Moat Score depends on the Steel industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Ternium's current Moat Score is 4. 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 $44.44 — trading 21.6% above its estimated fair value. The current Moat Score is 4. Ternium's overall GF Score™ is 84/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Ternium (TX), the current Moat Score is 4 as of Jun. 27, 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 $44.44 is trading 21.6% above its estimated GF Value™ of $36.54. GuruFocus considers Ternium to be Modestly Overvalued.

Key valuation signals for TX:

  • Moat Score: 4
  • GF Value™: $36.54 vs. price of $44.44 (21.6% above fair value)
  • GF Score™: 84/100 with 10 warning signs

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 Business Description

Address 26 Boulevard Royal, 4th Floor, Luxembourg, LUX, 2449
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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$44.44
Price
$36.54
GF Value