Ternium S.A.

TX: Is Ternium S.A. Halal?

Ternium S.A.

NYSEBasic MaterialsLU

$44.30

+2.03%

Market Cap: 8.7B

Compliance Status

Not Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Ternium S.A. (TX) halal? Not Halal. Based on AAOIFI screening, Ternium S.A. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Close to the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

29.7% of 30.0% limit

What this means for you

Most scholars advise not holding TX

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Ternium S.A.

Ternium S.A. is an international steel enterprise engaged in the production, processing, and sale of a wide range of steel products. Its extensive market presence covers Mexico, Argentina, Brazil, the United States, and numerous other countries across Central and South America, including Paraguay, Chile, Bolivia, Uruguay, Colombia, Guatemala, Costa Rica, Honduras, El Salvador, and Nicaragua. The company operates through two primary divisions. Its Steel segment provides an exhaustive catalog of steel goods, from foundational products like slabs, billets, and hot-rolled flat items, to finished goods such as reinforcing bars, beams, tubes, and specialized building components like insulated panels, roofing, and pre-engineered metal systems. This segment also supplies pig iron and energy. The Mining segment concentrates on selling essential raw materials, specifically iron ore and pellets. In addition to its core manufacturing and mining activities, Ternium delivers medical, social, and engineering services, manages scrap, and acts as a significant distribution company. Its offerings cater to both large corporations and smaller enterprises across diverse sectors, including construction, automotive, home appliances, agriculture, packaging, transport, and energy. Founded in 1961 and based in Luxembourg City, Luxembourg, Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.

Sector: Basic Materials · Industry: Steel

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Basic Materials

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Frequently Asked Questions

Is Ternium S.A. (TX) halal to invest in?
Ternium S.A. (TX) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Ternium S.A. get a F compliance rating?
Ternium S.A. (TX) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 29.7% (limit 30%); interest-bearing deposits of 35.7% (limit 30%); prohibited income of 1.53% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Ternium S.A.'s Shariah verdict?
Ternium S.A.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Ternium S.A. re-screened for Shariah compliance?
Ternium S.A. (TX) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.