TerniumBSP:TXSA34 -0.19%70 Operating Margin % is 7.37% as of Mar. 2026, which is 46% below its 10-year median of 13.72. GuruFocus rates BSP:TXSA34 with a GF Score™ of 70/100 and a GF Value™ of R$190.91 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 616 Steel companies, Ternium ranks better than 66.07% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Ternium's Operating Income for the
three
months ended in Mar. 2026 was R$1,517 Mil. Ternium's Revenue for the
three
months ended in Mar. 2026 was R$20,573 Mil. Therefore, Ternium's Operating Margin % for the quarter that ended in Mar. 2026 was 7.37%.
Warning Sign:
Ternium SA operating margin has been in a 5-year decline. The average rate of decline per year is -24.5%.
The historical rank and industry rank for Ternium's Operating Margin % or its related term are showing as below:
BSP:TXSA34'
s Operating Margin % Range Over the Past 10 Years
Min: 4.64 Med: 13.72 Max: 32.83
Current: 5.65
BSP:TXSA34's Operating Margin % is ranked better than 66.07% of 616
companies
in the Steel industry
Industry Median: 3
vs BSP:TXSA34: 5.65
Ternium's 5-Year Average Operating Margin % Growth Rate was -24.50% per year.
Ternium's Operating Income for the
three
months ended in Mar. 2026 was R$1,517 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was R$4,744 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Ternium Operating Margin % Related Terms
Ternium Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ternium's Operating Margin % 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.
BSP:TXSA34 vs CLF, WS, NWPX: Operating Margin % Comparison
For the Steel subindustry, Ternium's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Ternium's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ternium's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Ternium's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (BSP:TXSA34) has a Operating Margin % of 7.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ternium and its competitors. This is 46% below median its historical median of 13.72. Over the past decade, Ternium's Operating Margin % has ranged from 4.64 to 32.83. According to the industry distribution chart, Ternium ranks #209 out of 616 companies in the Steel industry, placing it in the top 33.9%.
Is Ternium's Operating Margin % too high?
Ternium's current Operating Margin % of 7.37% is 46% below median its 10-year median of 13.72. Over the past 10 years, this metric has ranged from a low of 4.64 to a high of 32.83. The Steel industry median Operating Margin % is 3.00. Ternium's value of 7.37% is 145.7% above this industry median. Based on the distribution chart, Ternium ranks #209 out of 616 companies in the Steel industry, which is above the industry midpoint. Overall, Ternium has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ternium's Operating Margin % compare to CLF and WS?
According to the Steel industry distribution chart, Ternium ranks #209 out of 616 companies for Operating Margin %. This puts Ternium in the upper half of its industry. The industry median Operating Margin % is 3.00. Ternium's value of 7.37% is 145.7% above this benchmark. Historically, Ternium's own Operating Margin % has ranged from 4.64 to 32.83 over the past decade. While the company's 10-year median is 13.72 vs. the industry median of 3.00, 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 Operating Margin % for a Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ternium's current Operating Margin % of 7.37% is 145.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Ternium and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ternium's current Operating Margin % is 7.37%, which is 46% below median its own 10-year median of 13.72. 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 (BSP:TXSA34) is currently considered Modestly Overvalued. The stock's GF Value™ is R$190.91, compared to a current price of R$234.96 — trading 23.1% above its estimated fair value. The current Operating Margin % is 7.37%, which is 46% below median its 10-year median of 13.72 and 145.7% above the Steel industry median of 3.00. Ternium's overall GF Score™ is 70/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Ternium (BSP:TXSA34), the current Operating Margin % is 7.37% 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 (BSP:TXSA34) Overvalued in 2026?
Based on GuruFocus' analysis, Ternium stock appears to be overvalued.
The current stock price of R$234.96 is trading 23.1% above its estimated GF Value™ of R$190.91.
GuruFocus considers Ternium to be Modestly Overvalued.
Key valuation signals for BSP:TXSA34:
Operating Margin %: 7.37% (46% below median its 10-year median of 13.72)
GF Value™: R$190.91 vs. price of R$234.96 (23.1% above fair value)
Industry Position: 145.7% above the Steel median (#209 of 616)
No single metric tells the full story. See the BSP:TXSA34 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.
70GF Score
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