LONDON, UK / ACCESSWIRE / May 03, 2018 / Active-Investors has a free review on Ternium S.A. (NYSE: TX) following the Company's announcement that it will begin trading ex-dividend on May 04, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on May 03, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on TX:
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On February 20, 2018, Ternium's Board of Directors proposed an annual dividend of USD0.11 per share (USD1.10 per ADS). The dividend represents a 10% hike compared to the previous year's dividend of USD1.00 per ADS. The annual dividend will be paid on May 10, 2018, with record-date of May 07, 2018.
Ternium's indicated dividend represents a yield of 2.77%, which is substantially higher than the average dividend yield of 2.46% for the Basic Materials sector.
Ternium has a dividend payout ratio of 22.0%, which denotes that the Company spends approximately $0.22 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Ternium is forecasted to report earnings of $4.79 per share for the next year, which is more than four times higher than the Company's annualized dividend of $1.10 per share.
Ternium's net cash provided by operating activities was $192.1 million in Q1 2018. Working capital increased by $266.1 million in Q1 2018 as a result of an aggregate $281.2 million net increase in trade and other receivables and a $158.2 million increase in inventories. In Q1 2018, Ternium's free cash flow was $89.7 million. The Company's net repayment of borrowings reached $180.6 million in the reported quarter. As of March 31, 2018, Ternium's net debt position was $2.6 billion, down from $2.7 billion at the end of December 2017 and equivalent to 1.2 times net debt to EBITDA. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
About Ternium S.A.
Ternium manufactures and processes various steel products in Mexico, Argentina, Bolivia, Chile, Paraguay, Uruguay, Colombia, the United States, Central America, and internationally. The Company serves various companies and small businesses operating in construction, automotive, home appliances, capital goods, container, food, and energy industries. Ternium was founded in 1961 and is headquartered in Buenos Aires, Argentina.
Stock Performance Snapshot
May 02, 2018 - At Wednesday's closing bell, Ternium's stock fell 2.15%, ending the trading session at $39.68.
Volume traded for the day: 488.13 thousand shares, which was above the 3-month average volume of 353.28 thousand shares.
Stock performance in the last month – up 20.57%; previous three-month period – up 16.33%; past twelve-month period – up 56.90%; and year-to-date – up 25.61%
After yesterday's close, Ternium's market cap was at $7.39 billion.
Price to Earnings (P/E) ratio was at 8.84.
The stock has a dividend yield of 2.77%.
The stock is part of the Basic Materials sector, categorized under the Steel & Iron industry. This sector was up 0.2% at the end of the session.
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