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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ternium Argentina's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.03%.
As of today (2026-07-14), Ternium Argentina's WACC % is 10.48%. Ternium Argentina's ROC % is 1.43% (calculated using TTM income statement data).
Ternium Argentina earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ternium Argentina (BUE:TXAR) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Ternium Argentina's WACC % is 10.48%. Ternium Argentina's ROC % is 1.43% (calculated using TTM income statement data).
Ternium Argentina earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Ternium Argentina ROC % Related Terms
Ternium Argentina ROC % Historical Data
* Premium members only.
The historical data trend for Ternium Argentina's ROC % 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:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 Argentina (BUE:TXAR) has a ROC % of 1.03% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ternium Argentina and its competitors.
Is Ternium Argentina's ROC % too high?
Ternium Argentina's current ROC % is 1.03%. The Steel industry median ROC % is 2.52. Ternium Argentina's value of 1.03% is 59.1% below this industry median. 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 ROC % compare to NUE and STLD?
Ternium Argentina's ROC % of 1.03% can be compared against companies in the Steel industry. The industry median ROC % is 2.52. Ternium Argentina's value of 1.03% is 59.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Steel company?
The median ROC % among Steel companies is 2.52, based on 621 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ternium Argentina's current ROC % of 1.03% is 59.1% below 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ternium Argentina and its competitors. For the Steel industry, the median ROC % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ternium Argentina's current ROC % is 1.03%. 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 ARS662.00 — trading 53.4% below its estimated fair value. The current ROC % is 1.03% and 59.1% below the Steel industry median of 2.52. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For Ternium Argentina (BUE:TXAR), the current ROC % is 1.03% 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 ARS662.00 is trading 53.4% below its estimated GF Value™ of ARS1,420.58.
GuruFocus considers Ternium Argentina to be Significantly Undervalued.
Key valuation signals for BUE:TXAR:
ROC %: 1.03%
GF Value™: ARS1,420.58 vs. price of ARS662.00 (53.4% below fair value)
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 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
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