In a market where value is scarce, NYSE:TS offers a refreshing opportunity with its solid fundamentals.

Last update: Sep 25, 2023

Our stock screener has singled out TENARIS SA-ADR (NYSE:TS) as a stellar value proposition. NYSE:TS not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

What does the Valuation looks like for NYSE:TS

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:TS has achieved a 9 out of 10:

The Price/Earnings ratio is 3.83, which indicates a rather cheap valuation of TS.
Based on the Price/Earnings ratio, TS is valued cheaply inside the industry as 98.44% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.89. TS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.37 indicates a rather cheap valuation of TS.
85.94% of the companies in the same industry are more expensive than TS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 18.97. TS is valued rather cheaply when compared to this.
98.44% of the companies in the same industry are more expensive than TS, based on the Enterprise Value to EBITDA ratio.
TS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TS is cheaper than 90.63% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TS may justify a higher PE ratio.

Evaluating Profitability: NYSE:TS

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:TS has earned a 8 out of 10:

TS has a Return On Assets of 19.03%. This is amongst the best in the industry. TS outperforms 96.88% of its industry peers.
Looking at the Return On Equity, with a value of 23.46%, TS belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
The Return On Invested Capital of TS (22.43%) is better than 96.88% of its industry peers.
TS's Profit Margin of 24.75% is amongst the best of the industry. TS outperforms 98.44% of its industry peers.
TS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.53%, TS belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
In the last couple of years the Operating Margin of TS has grown nicely.
TS has a Gross Margin of 43.25%. This is amongst the best in the industry. TS outperforms 87.50% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.

Exploring NYSE:TS's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TS has received a 9 out of 10:

TS has an Altman-Z score of 6.09. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.09, TS belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
TS has a debt to FCF ratio of 0.32. This is a very positive value and a sign of high solvency as it would only need 0.32 years to pay back of all of its debts.
TS has a better Debt to FCF ratio (0.32) than 96.88% of its industry peers.
TS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
TS has a better Debt to Equity ratio (0.01) than 92.19% 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.
The Current ratio of TS (3.71) is better than 90.63% of its industry peers.
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.
With an excellent Quick ratio value of 2.21, TS belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.

Growth Examination for NYSE:TS

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:TS has achieved a 5 out of 10:

The Earnings Per Share has grown by an impressive 159.62% over the past year.
TS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.56% yearly.
TS shows a strong growth in Revenue. In the last year, the Revenue has grown by 64.96%.
TS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.34% yearly.

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

Our latest full fundamental report of TS contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.