Despite its impressive fundamentals, NYSE:TS remains undervalued.

Last update: Oct 4, 2023

Our stock screening tool has pinpointed TENARIS SA-ADR (NYSE:TS) as an undervalued stock. NYSE:TS maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Assessing Valuation Metrics 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:

With a Price/Earnings ratio of 3.78, the valuation of TS can be described as very cheap.
98.44% of the companies in the same industry are more expensive than TS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.11, TS is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.29, the valuation of TS can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TS indicates a rather cheap valuation: TS is cheaper than 82.81% of the companies listed in the same industry.
TS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.41.
96.88% 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 89.06% of the companies 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.
The excellent profitability rating of TS may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TS, the assigned 8 is noteworthy for profitability:

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

What does the Health looks like for NYSE:TS

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 6.05. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
TS has a Altman-Z score of 6.05. This is amongst the best in the industry. TS outperforms 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.
With an excellent Debt to Equity ratio value of 0.01, TS belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
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.
A Quick Ratio of 2.21 indicates that TS has no problem at all paying its short term obligations.
TS's Quick ratio of 2.21 is amongst the best of the industry. TS outperforms 84.38% of its industry peers.

A Closer Look at Growth 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.
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.
TS shows a strong growth in Revenue. In the last year, the Revenue has grown by 64.96%.
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.

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.