TerniumTX +1.24%84 5-Year Yield-on-Cost % is 5.08 as of Jul. 09, 2026, which is 20% below its 10-year median of 6.32. GuruFocus rates TX with a GF Score™ of 84/100 and a GF Value™ of $36.66 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 318 Steel companies, Ternium ranks better than 64.47% on this metric.
Ternium's yield on cost for the quarter that ended in Mar. 2026 was 5.08.
The historical rank and industry rank for Ternium's 5-Year Yield-on-Cost % or its related term are showing as below:
TX'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.46 Med: 6.32 Max: 11.69
Current: 5.08
During the past 13 years, Ternium's highest Yield on Cost was 11.69. The lowest was 2.46. And the median was 6.32.
TX's 5-Year Yield-on-Cost % is ranked better than 64.47% of 318
companies
in the Steel industry
Industry Median: 3.31
vs TX: 5.08
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Ternium 5-Year Yield-on-Cost % Related Terms
TX vs CLF, WS, NWPX: 5-Year Yield-on-Cost % Comparison
For the Steel subindustry, Ternium's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Steel Industry
For the Steel industry and Basic Materials sector, Ternium's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Ternium's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Ternium is calculated as
Ternium (TX) has a 5-Year Yield-on-Cost % of 5.08 as of Jul. 09, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Ternium and its competitors. This is 20% below median its historical median of 6.32. Over the past decade, Ternium's 5-Year Yield-on-Cost % has ranged from 2.46 to 11.69. According to the industry distribution chart, Ternium ranks #113 out of 318 companies in the Steel industry, placing it in the top 35.5%.
Is Ternium's 5-Year Yield-on-Cost % too high?
Ternium's current 5-Year Yield-on-Cost % of 5.08 is 20% below median its 10-year median of 6.32. Over the past 10 years, this metric has ranged from a low of 2.46 to a high of 11.69. The Steel industry median 5-Year Yield-on-Cost % is 3.31. Ternium's value of 5.08 is 53.5% above this industry median. Based on the distribution chart, Ternium ranks #113 out of 318 companies in the Steel industry, which is above 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 5-Year Yield-on-Cost % compare to CLF and WS?
According to the Steel industry distribution chart, Ternium ranks #113 out of 318 companies for 5-Year Yield-on-Cost %. This puts Ternium in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.31. Ternium's value of 5.08 is 53.5% above this benchmark. Historically, Ternium's own 5-Year Yield-on-Cost % has ranged from 2.46 to 11.69 over the past decade. While the company's 10-year median is 6.32 vs. the industry median of 3.31, 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 5-Year Yield-on-Cost % for a Steel company?
The median 5-Year Yield-on-Cost % among Steel companies is 3.31, based on 318 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ternium's current 5-Year Yield-on-Cost % of 5.08 is 53.5% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Ternium and its competitors. For the Steel industry, the median 5-Year Yield-on-Cost % is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ternium's current 5-Year Yield-on-Cost % is 5.08, which is 20% below median its own 10-year median of 6.32. 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 $36.66, compared to a current price of $43.42 — trading 18.4% above its estimated fair value. The current 5-Year Yield-on-Cost % is 5.08, which is 20% below median its 10-year median of 6.32 and 53.5% above the Steel industry median of 3.31. Ternium's overall GF Score™ is 84/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Ternium (TX), the current 5-Year Yield-on-Cost % is 5.08 as of Jul. 09, 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 $43.42 is trading 18.4% above its estimated GF Value™ of $36.66.
GuruFocus considers Ternium to be Modestly Overvalued.
Key valuation signals for TX:
5-Year Yield-on-Cost %: 5.08 (20% below median its 10-year median of 6.32)
GF Value™: $36.66 vs. price of $43.42 (18.4% above fair value)
Industry Position: 53.5% above the Steel median (#113 of 318)
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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