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

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.

ChartMill's Evaluation of Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:TS was assigned a score of 9 for valuation:

• A Price/Earnings ratio of 3.96 indicates a rather cheap valuation of TS.
• Based on the Price/Earnings ratio, TS is valued cheaper than 98.44% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 25.79, TS is valued rather cheaply.
• The Price/Forward Earnings ratio is 6.59, which indicates a rather cheap valuation of TS.
• TS's Price/Forward Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 87.50% of the companies in the same industry.
• TS is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.89, which is the current average of the S&P500 Index.
• TS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TS is cheaper than 96.88% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, TS is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
• TS's 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.

Analyzing Profitability Metrics

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:

• The Return On Assets of TS (19.03%) is better than 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.
• TS's Return On Invested Capital of 22.43% is amongst the best of the industry. TS outperforms 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.
• TS's Profit Margin has improved in the last couple of years.
• TS has a better Operating Margin (30.53%) than 96.88% of its industry peers.
• TS's Operating Margin has improved in the last couple of years.
• The Gross Margin of TS (43.25%) is better than 87.50% of its industry peers.
• TS's Gross Margin has improved in the last couple of years.

How do we evaluate the Health for NYSE:TS?

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:TS scores a 9 out of 10:

• An Altman-Z score of 6.19 indicates that TS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of TS (6.19) is better than 92.19% of its industry peers.
• 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 Debt to FCF ratio of 0.32. This is amongst the best in the industry. TS outperforms 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.
• Looking at the Debt to Equity ratio, with a value of 0.01, TS belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
• A Current Ratio of 3.71 indicates that TS has no problem at all paying 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.
• The Quick ratio of TS (2.21) is better than 84.38% of its industry peers.

Understanding NYSE:TS's Growth

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:

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

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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.