NYSE:TS stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Oct 3, 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.

Valuation Analysis for NYSE:TS

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:TS, the assigned 9 reflects its valuation:

With a Price/Earnings ratio of 3.77, the valuation of TS can be described as very cheap.
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 25.50, TS is valued rather cheaply.
The Price/Forward Earnings ratio is 6.28, which indicates a rather cheap valuation of TS.
84.38% of the companies in the same industry are more expensive than TS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.66, TS is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TS indicates a rather cheap valuation: TS is cheaper than 98.44% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TS is valued cheaper than 89.06% 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.
TS has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Insights: 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's Return On Assets of 19.03% is amongst the best of the industry. TS outperforms 96.88% of its industry peers.
TS has a better Return On Equity (23.46%) than 85.94% of its industry peers.
TS has a Return On Invested Capital of 22.43%. This is amongst the best in the industry. TS outperforms 96.88% of its industry peers.
With an excellent Profit Margin value of 24.75%, TS belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
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's Gross Margin of 43.25% is amongst the best of the industry. TS outperforms 87.50% of its industry peers.
TS's Gross Margin has improved in the last couple of years.

Evaluating Health: NYSE:TS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TS has earned a 9 out of 10:

TS has an Altman-Z score of 6.04. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TS (6.04) 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 better Debt to FCF ratio (0.32) than 96.88% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
The Debt to Equity ratio of TS (0.01) is better than 92.19% of its industry peers.
A Current Ratio of 3.71 indicates that TS has no problem at all paying its short term obligations.
TS has a Current ratio of 3.71. This is amongst the best in the industry. TS outperforms 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.
TS has a better Quick ratio (2.21) than 84.38% of its industry peers.

Evaluating Growth: NYSE:TS

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:TS has received a 5 out of 10:

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.
Looking at the last year, TS shows a very strong growth in Revenue. 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.

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.

Keep in mind

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.