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

Last update: Oct 9, 2023

Discover TENARIS SA-ADR (NYSE:TS)—an undervalued stock our stock screener has picked out. NYSE:TS demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Deciphering NYSE:TS's Valuation Rating

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:

A Price/Earnings ratio of 3.83 indicates a rather cheap valuation of TS.
TS's Price/Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 98.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.46. TS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.39, the valuation of TS can be described as very cheap.
Based on the Price/Forward Earnings ratio, TS is valued a bit cheaper than 78.46% of the companies in the same industry.
TS is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.67, which is the current average of the S&P500 Index.
92.31% of the companies in the same industry are more expensive than TS, based on the Enterprise Value to EBITDA ratio.
89.23% 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.

Looking at the Profitability

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's Return On Assets of 19.03% is amongst the best of the industry. TS outperforms 96.92% of its industry peers.
TS has a better Return On Equity (23.46%) than 86.15% of its industry peers.
TS's Return On Invested Capital of 22.43% is amongst the best of the industry. TS outperforms 96.92% of its industry peers.
TS has a Profit Margin of 24.75%. This is amongst the best in the industry. TS outperforms 98.46% of its industry peers.
In the last couple of years the Profit Margin of TS has grown nicely.
The Operating Margin of TS (30.53%) is better than 96.92% of its industry peers.
TS's Operating Margin has improved in the last couple of years.
TS has a Gross Margin of 43.25%. This is amongst the best in the industry. TS outperforms 87.69% of its industry peers.
TS's Gross Margin has improved in the last couple of years.

Deciphering NYSE:TS's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:TS, the assigned 9 for health provides valuable insights:

An Altman-Z score of 6.10 indicates that TS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.10, TS belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.32, TS belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
TS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TS (0.01) is better than 92.31% 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.
With an excellent Current ratio value of 3.71, TS belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
A Quick Ratio of 2.21 indicates that TS has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.21, TS belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.

Assessing Growth Metrics for NYSE:TS

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:TS, the assigned 5 reflects its growth potential:

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
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.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of TS for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.