Ternium vs Gerdau
This page compares Ternium S.A. and Gerdau S.A. to illuminate differences in business models, financial performance, and market context. It provides objective, accessible information to help readers understand each company's approach, strengths, and potential considerations within the steel sector. Educational content, not financial advice.
This page compares Ternium S.A. and Gerdau S.A. to illuminate differences in business models, financial performance, and market context. It provides objective, accessible information to help readers u...
Which Baskets Do They Appear In?
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Explore BasketInvestment Analysis
Ternium
TX
Pros
- Ternium operates a diversified business with steel manufacturing, mining, and services segments across Latin America and internationally, supporting operational flexibility.
- The company has a broad product portfolio including slabs, hot and cold rolled, coated products, tubular goods, and construction-related steel items, enabling market reach.
- Ternium maintains a presence in multiple steel value chains, including automotive and civil construction sectors, which supports demand stability.
Considerations
- Ternium's profitability metrics, such as net margin and return on equity, are lower compared to Gerdau, indicating comparatively weaker efficiency.
- The company faces uncertainty related to evolving trade policies in the U.S. that may suppress volume growth and complicate investment decisions.
- Its net income saw a significant decline of 57 percent in Q1 2025 compared to the prior year, reflecting operational challenges in the current market environment.
Gerdau
GGB
Pros
- Gerdau demonstrates stronger profitability than Ternium with higher net margins, return on equity, and return on assets noted in recent financials.
- Geographical diversification with significant operations in Brazil, North America, and Latin America helps mitigate regional market volatility risks.
- The company benefits from its focus on recycled-content electric arc furnace (EAF) steel production and scrap recycling, which aligns with sustainability trends.
Considerations
- Gerdau's net income declined 39 percent year-over-year in Q1 2025 despite sequential improvement, signaling ongoing operational pressures.
- Despite higher revenues, Gerdau's return on equity is still modest relative to some industry peers and its own historical averages.
- The stock has experienced price depreciation recently, with forecasts indicating potential declines over the next year, reflecting market uncertainties.
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