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

Last update: Sep 26, 2023

Discover TENARIS SA-ADR (NYSE:TS), an undervalued stock highlighted by our stock screener. NYSE:TS showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Analyzing Valuation Metrics

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:TS has received a 9 out of 10:

The Price/Earnings ratio is 3.85, which indicates a rather cheap valuation of TS.
TS's Price/Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 98.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.92. TS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.42, which indicates a rather cheap valuation of TS.
Based on the Price/Forward Earnings ratio, TS is valued cheaper than 85.94% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.00. TS is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, TS is valued cheaper than 98.44% of the companies in the same industry.
90.63% of the companies in the same industry are more expensive than TS, based on the Price/Free Cash Flow ratio.
The 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's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TS, the assigned 8 is a significant indicator of profitability:

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

Health Assessment of NYSE:TS

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TS has achieved a 9 out of 10:

An Altman-Z score of 6.11 indicates that TS is not in any danger for bankruptcy at the moment.
TS's Altman-Z score of 6.11 is amongst the best of the industry. TS outperforms 92.19% 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.
The Debt to FCF ratio of TS (0.32) is better 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's Debt to Equity ratio of 0.01 is amongst the best of the industry. TS outperforms 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.
TS has a better Current ratio (3.71) than 90.63% of its industry peers.
A Quick Ratio of 2.21 indicates that TS has no problem at all paying its short term obligations.
TS has a better Quick ratio (2.21) than 84.38% of its industry peers.

Analyzing Growth Metrics

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:TS was assigned a score of 5 for growth:

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

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For an up to date full fundamental analysis you can check the fundamental report of TS

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.