WallStSmart

Grupo Simec SAB de CV ADR (SIM)vsTernium SA ADR (TX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Grupo Simec SAB de CV ADR generates 98% more annual revenue ($31.64B vs $16.00B). SIM leads profitability with a 11.1% profit margin vs 4.4%. TX appears more attractively valued with a PEG of 0.13. TX earns a higher WallStSmart Score of 68/100 (B-).

SIM

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 6.0Quality: 9.0
Piotroski: 4/9Altman Z: 5.69

TX

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 5.0Value: 7.7Quality: 8.0
Piotroski: 3/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SIMUndervalued (+39.6%)

Margin of Safety

+39.6%

Fair Value

$51.30

Current Price

$26.40

$24.90 discount

UndervaluedFair: $51.30Overvalued

Intrinsic value data unavailable for TX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SIM5 strengths · Avg: 9.2/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.6910/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
15.6%8/10

15.6% revenue growth

EPS GrowthGrowth
30.9%8/10

Earnings expanding 30.9% YoY

TX6 strengths · Avg: 9.5/10
PEG RatioValuation
0.1310/10

Growing faster than its price suggests

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

EPS GrowthGrowth
59.5%10/10

Earnings expanding 59.5% YoY

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Areas to Watch

SIM3 concerns · Avg: 2.3/10
Return on EquityProfitability
4.4%3/10

ROE of 4.4% — below average capital efficiency

PEG RatioValuation
4.432/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.11B2/10

Negative free cash flow — burning cash

TX4 concerns · Avg: 2.8/10
Return on EquityProfitability
4.7%3/10

ROE of 4.7% — below average capital efficiency

Profit MarginProfitability
4.4%3/10

4.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-175.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : SIM

The strongest argument for SIM centers on Price/Book, Debt/Equity, Altman Z-Score. Revenue growth of 15.6% demonstrates continued momentum.

Bull Case : TX

The strongest argument for TX centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.13 suggests the stock is reasonably priced for its growth.

Bear Case : SIM

The primary concerns for SIM are Return on Equity, PEG Ratio, Free Cash Flow.

Bear Case : TX

The primary concerns for TX are Return on Equity, Profit Margin, Piotroski F-Score. Thin 4.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

SIM profiles as a growth stock while TX is a value play — different risk/reward profiles.

TX carries more volatility with a beta of 1.17 — expect wider price swings.

SIM is growing revenue faster at 15.6% — sustainability is the question.

TX generates stronger free cash flow (-175M), providing more financial flexibility.

Bottom Line

TX scores higher overall (68/100 vs 62/100). SIM offers better value entry with a 39.6% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Grupo Simec SAB de CV ADR

BASIC MATERIALS · STEEL · USA

Grupo Simec, SAB de CV manufactures, processes and distributes steel and steel alloys with special bar quality (SBQ) in Mexico, the United States, Brazil, Canada and internationally. The company is headquartered in Guadalajara, Mexico.

Ternium SA ADR

BASIC MATERIALS · STEEL · USA

Ternium SA manufactures and processes various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador and Nicaragua. The company is headquartered in Luxembourg City, Luxembourg.

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