Don't overlook NYSE:TS—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Sep 22, 2023

Our stock screener has spotted TENARIS SA-ADR (NYSE:TS) as an undervalued stock with solid fundamentals. NYSE:TS shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Assessment of NYSE:TS

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:TS has earned a 9 for valuation:

TS is valuated cheaply with a Price/Earnings ratio of 3.84.
Compared to the rest of the industry, the Price/Earnings ratio of TS indicates a rather cheap valuation: TS is cheaper than 98.39% of the companies listed in the same industry.
TS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.93.
Based on the Price/Forward Earnings ratio of 6.40, the valuation of TS can be described as very cheap.
Based on the Price/Forward Earnings ratio, TS is valued cheaper than 83.87% of the companies in the same industry.
TS is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.01, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, TS is valued cheaper than 98.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TS indicates a rather cheap valuation: TS is cheaper than 90.32% of the companies listed in the same industry.
TS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TS has an outstanding profitability rating, which may justify a higher PE ratio.

Assessing Profitability for NYSE:TS

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TS was assigned a score of 8 for profitability:

Looking at the Return On Assets, with a value of 19.03%, TS belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
TS has a better Return On Equity (23.46%) than 87.10% of its industry peers.
TS has a better Return On Invested Capital (22.43%) than 96.77% of its industry peers.
With an excellent Profit Margin value of 24.75%, TS belongs to the best of the industry, outperforming 98.39% of the companies in the same industry.
In the last couple of years the Profit Margin of TS has grown nicely.
TS has a better Operating Margin (30.53%) than 98.39% of its industry peers.
TS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 43.25%, TS belongs to the best of the industry, outperforming 88.71% of the companies in the same industry.
In the last couple of years the Gross Margin of TS has grown nicely.

Assessing Health for NYSE:TS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:TS, the assigned 9 for health provides valuable insights:

An Altman-Z score of 6.10 indicates that TS is not in any danger for bankruptcy at the moment.
TS has a better Altman-Z score (6.10) than 93.55% of its industry peers.
The Debt to FCF ratio of TS is 0.32, which is an excellent value as it means it would take TS, only 0.32 years of fcf income to pay off all of its debts.
TS has a Debt to FCF ratio of 0.32. This is amongst the best in the industry. TS outperforms 96.77% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
TS's Debt to Equity ratio of 0.01 is amongst the best of the industry. TS outperforms 91.94% of its industry peers.
TS has a Current Ratio of 3.71. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.71, TS belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
TS has a Quick Ratio of 2.21. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
TS's Quick ratio of 2.21 is amongst the best of the industry. TS outperforms 83.87% of its industry peers.

Growth Examination for NYSE:TS

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:TS has earned a 5 for growth:

The Earnings Per Share has grown by an impressive 159.62% over the past year.
The Earnings Per Share has been growing by 41.56% on average over the past years. This is a very strong growth
The Revenue has grown by 64.96% in the past year. This is a very strong growth!
The Revenue has been growing by 17.34% on average over the past years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of TS for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.