Ternium's Credit Strength Transforms Cyclical Business into Durable Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 29 2025
0mins
Should l Buy FRD?
Source: Benzinga
- Credit Advantage: Ternium, as a leading steel producer in Latin America, showcases strong credit strength characterized by low leverage and ample liquidity, allowing it to invest during industry downturns and protect shareholder value.
- Value Investment: Ternium trades at earnings and cash flow multiples below normalized cycle peaks, reflecting persistent skepticism towards the steel industry, yet improved industry discipline lays the groundwork for future growth.
- Momentum Recovery: With stabilized pricing and recovered volumes, Ternium's stock is firmly in an intermediate and long-term uptrend, indicating increasing market recognition of its value.
- Market Positioning: Ternium's geographic exposure in Mexico and South America enables it to effectively meet infrastructure, automotive, and industrial demand, further solidifying its market leadership.
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Analyst Views on FRD
About FRD
Friedman Industries, Incorporated is a manufacturer and processor of steel products. The Company has two segments: flat-roll products and tubular products. The flat-roll product segment consists of operations in Hickman, Decatur, East Chicago, Granite City and Sinton, where it processes hot-rolled steel coils. The Hickman, East Chicago and Granite City facilities operate temper mills and corrective leveling cut-to-length lines. The Sinton and Decatur facilities operate stretcher-leveler cut-to-length lines. The tubular product segment consists of operations in Lone Star, where it manufactures electric resistance welded pipe and distributes pipe through its Texas Tubular Products division. TTP operates two electric resistance welded pipe mills with a combined outside diameter (OD) size range of 2 3/8' OD to 8 5/8' OD. Both pipe mills are American Petroleum Institute (API) licensed to manufacture line pipe and oil country pipe and also manufacture pipe for structural purposes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Market Dynamics: The Return of Value Investing
- Global Economic Overview: While inflation continues to ease across major economies, uneven growth persists, and concerns over how AI will reshape margins and pricing power have led to volatility in the software sector, impacting credit markets.
- European Market Resilience: The Eurozone remains stable with fiscal support, despite modest deterioration in manufacturing and hiring trends, as strong performances in banks, commodities, and defense industries offset volatility tied to global technology concerns.
- Japan's Policy Shifts: Fiscal expansion linked to election promises has pushed bond yields higher in Japan, prompting markets to reassess debt and spending expectations, while corporate governance reforms and improving economic growth have supported stock performance.
- North American Rotation: With moderating inflation and a resilient labor market in the U.S., investors are increasingly favoring companies with strong balance sheets and predictable cash flows, leading to relative strength in energy and financial sectors.
See More
Friedman Industries Reports Strong Q3 2025 Earnings Growth
- Significant Sales Growth: Friedman Industries reported sales of $168 million for Q3 2025, a remarkable 79% increase year-over-year, driven by strong market demand and the contribution from the Century acquisition.
- Profitability Turnaround: The company achieved net earnings of $3 million in Q3 2025, translating to a diluted earnings per share of $0.43, a substantial recovery from a net loss of $1.2 million in Q3 2024, indicating a strong improvement in profitability.
- Price Increases: The average selling price for flat-roll products rose from $813 per ton in Q4 2024 to $1,016 per ton in Q4 2025, enhancing the company's margins and strengthening its competitive position in the market.
- Effective Risk Management: Through successful hedging activities, Friedman recognized approximately $1.4 million in gains during Q3 2025, effectively mitigating the impact of commodity price volatility on inventory values, thereby reinforcing the company's financial stability.
See More
Friedman Reports Strong Q3 Earnings with 78.6% Revenue Growth
- Significant Earnings Growth: Friedman reported a GAAP EPS of $0.43 for Q3, with revenue reaching $167.97 million, reflecting a robust 78.6% year-over-year increase, indicating strong market performance and enhanced profitability.
- Stable Sales Outlook: Management expects fourth quarter fiscal 2026 sales volumes to remain generally consistent with third quarter levels, suggesting stability in the current market environment and sustained customer demand.
- Margin Improvement Anticipated: The management anticipates sequential improvement in sales margins as they enter the fourth quarter, primarily driven by increases in average selling prices, which will further enhance the company's profitability and competitive position.
- Market Environment Insight: Friedman benefits from rising hot-rolled coil (HRC) prices, although management warns of potential mean reversion risks, necessitating vigilance in navigating future market fluctuations to ensure continued growth.
See More
Ternium's Credit Strength Transforms Cyclical Business into Durable Investment
- Credit Advantage: Ternium, as a leading steel producer in Latin America, showcases strong credit strength characterized by low leverage and ample liquidity, allowing it to invest during industry downturns and protect shareholder value.
- Value Investment: Ternium trades at earnings and cash flow multiples below normalized cycle peaks, reflecting persistent skepticism towards the steel industry, yet improved industry discipline lays the groundwork for future growth.
- Momentum Recovery: With stabilized pricing and recovered volumes, Ternium's stock is firmly in an intermediate and long-term uptrend, indicating increasing market recognition of its value.
- Market Positioning: Ternium's geographic exposure in Mexico and South America enables it to effectively meet infrastructure, automotive, and industrial demand, further solidifying its market leadership.
See More
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- Stock Surge: The company's stock has surged 295% year-to-date, reflecting strong market confidence in its lithium extraction capabilities and future growth potential, further solidifying its position in the lithium market.
- Acquisition Deal: Northern Superior Resources was acquired by IAMGOLD for 0.0991 IAMGOLD shares and 0.19 CAD in cash per share, demonstrating ongoing market demand for quality mineral resources, which is expected to drive future resource consolidation and value enhancement for the company.
- Production Expansion Plans: Sierra Madre Gold and Silver plans to expand La Guitarra's production capacity from 500 tons per day to 750-800 tons by mid-2026, which is anticipated to further enhance the company's competitiveness and profitability in the silver market.
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Ideal Stock Portfolio: December 2025 Update
Global Market Trends: Investors are currently favoring narratives over financial fundamentals, leading to many companies trading below their book value despite strong balance sheets and financial health, particularly in the U.S., Europe, Japan, and China.
U.S. Market Insights: In the U.S., many asset-intensive businesses, especially in the financial sector, are undervalued despite solid capital positions and liquidity, reflecting a market mindset of crisis rather than current financial realities.
European Financial Strength: European banks and industrial companies are well-capitalized and generating profits, yet they are trading below tangible book value due to market perceptions of impending downturns, creating investment opportunities.
Japanese and Chinese Opportunities: Japan's companies often have strong balance sheets with net cash positions, while in China, a distinction exists between companies with solid financials and those facing real risks, presenting a selective investment landscape focused on financial strength.
See More
Market Dynamics: The Return of Value Investing
- Global Economic Overview: While inflation continues to ease across major economies, uneven growth persists, and concerns over how AI will reshape margins and pricing power have led to volatility in the software sector, impacting credit markets.
- European Market Resilience: The Eurozone remains stable with fiscal support, despite modest deterioration in manufacturing and hiring trends, as strong performances in banks, commodities, and defense industries offset volatility tied to global technology concerns.
- Japan's Policy Shifts: Fiscal expansion linked to election promises has pushed bond yields higher in Japan, prompting markets to reassess debt and spending expectations, while corporate governance reforms and improving economic growth have supported stock performance.
- North American Rotation: With moderating inflation and a resilient labor market in the U.S., investors are increasingly favoring companies with strong balance sheets and predictable cash flows, leading to relative strength in energy and financial sectors.
See More
Friedman Industries Reports Strong Q3 2025 Earnings Growth
- Significant Sales Growth: Friedman Industries reported sales of $168 million for Q3 2025, a remarkable 79% increase year-over-year, driven by strong market demand and the contribution from the Century acquisition.
- Profitability Turnaround: The company achieved net earnings of $3 million in Q3 2025, translating to a diluted earnings per share of $0.43, a substantial recovery from a net loss of $1.2 million in Q3 2024, indicating a strong improvement in profitability.
- Price Increases: The average selling price for flat-roll products rose from $813 per ton in Q4 2024 to $1,016 per ton in Q4 2025, enhancing the company's margins and strengthening its competitive position in the market.
- Effective Risk Management: Through successful hedging activities, Friedman recognized approximately $1.4 million in gains during Q3 2025, effectively mitigating the impact of commodity price volatility on inventory values, thereby reinforcing the company's financial stability.
See More
Friedman Reports Strong Q3 Earnings with 78.6% Revenue Growth
- Significant Earnings Growth: Friedman reported a GAAP EPS of $0.43 for Q3, with revenue reaching $167.97 million, reflecting a robust 78.6% year-over-year increase, indicating strong market performance and enhanced profitability.
- Stable Sales Outlook: Management expects fourth quarter fiscal 2026 sales volumes to remain generally consistent with third quarter levels, suggesting stability in the current market environment and sustained customer demand.
- Margin Improvement Anticipated: The management anticipates sequential improvement in sales margins as they enter the fourth quarter, primarily driven by increases in average selling prices, which will further enhance the company's profitability and competitive position.
- Market Environment Insight: Friedman benefits from rising hot-rolled coil (HRC) prices, although management warns of potential mean reversion risks, necessitating vigilance in navigating future market fluctuations to ensure continued growth.
See More
Ternium's Credit Strength Transforms Cyclical Business into Durable Investment
- Credit Advantage: Ternium, as a leading steel producer in Latin America, showcases strong credit strength characterized by low leverage and ample liquidity, allowing it to invest during industry downturns and protect shareholder value.
- Value Investment: Ternium trades at earnings and cash flow multiples below normalized cycle peaks, reflecting persistent skepticism towards the steel industry, yet improved industry discipline lays the groundwork for future growth.
- Momentum Recovery: With stabilized pricing and recovered volumes, Ternium's stock is firmly in an intermediate and long-term uptrend, indicating increasing market recognition of its value.
- Market Positioning: Ternium's geographic exposure in Mexico and South America enables it to effectively meet infrastructure, automotive, and industrial demand, further solidifying its market leadership.
See More
LibertyStream Infrastructure Partners Achieves 10 Tons of Lithium Carbonate Output in 2025
- Lithium Extraction Breakthrough: LibertyStream Infrastructure Partners achieved its first output of approximately 10 tons of battery-grade lithium carbonate from its Texas Permian refining unit in 2025, marking significant progress in its direct lithium extraction testing, which processed over 350,000 barrels of brine, and is expected to drive future commercial sales.
- Stock Surge: The company's stock has surged 295% year-to-date, reflecting strong market confidence in its lithium extraction capabilities and future growth potential, further solidifying its position in the lithium market.
- Acquisition Deal: Northern Superior Resources was acquired by IAMGOLD for 0.0991 IAMGOLD shares and 0.19 CAD in cash per share, demonstrating ongoing market demand for quality mineral resources, which is expected to drive future resource consolidation and value enhancement for the company.
- Production Expansion Plans: Sierra Madre Gold and Silver plans to expand La Guitarra's production capacity from 500 tons per day to 750-800 tons by mid-2026, which is anticipated to further enhance the company's competitiveness and profitability in the silver market.
See More
Ideal Stock Portfolio: December 2025 Update
Global Market Trends: Investors are currently favoring narratives over financial fundamentals, leading to many companies trading below their book value despite strong balance sheets and financial health, particularly in the U.S., Europe, Japan, and China.
U.S. Market Insights: In the U.S., many asset-intensive businesses, especially in the financial sector, are undervalued despite solid capital positions and liquidity, reflecting a market mindset of crisis rather than current financial realities.
European Financial Strength: European banks and industrial companies are well-capitalized and generating profits, yet they are trading below tangible book value due to market perceptions of impending downturns, creating investment opportunities.
Japanese and Chinese Opportunities: Japan's companies often have strong balance sheets with net cash positions, while in China, a distinction exists between companies with solid financials and those facing real risks, presenting a selective investment landscape focused on financial strength.
See More
