NYSE:TS: good value for what you're paying.

Last update: Oct 11, 2023

TENARIS SA-ADR (NYSE:TS) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:TS showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Evaluating Valuation: NYSE:TS

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:TS boasts a 9 out of 10:

A Price/Earnings ratio of 4.02 indicates a rather cheap valuation of TS.
Based on the Price/Earnings ratio, TS is valued cheaper than 98.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of TS to the average of the S&P500 Index (25.88), we can say TS is valued rather cheaply.
A Price/Forward Earnings ratio of 6.70 indicates a rather cheap valuation of TS.
78.46% of the companies in the same industry are more expensive than TS, based on the Price/Forward Earnings ratio.
TS is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.97, 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 92.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TS indicates a rather cheap valuation: TS is cheaper than 89.23% of the companies listed 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.

How do we evaluate the Profitability for NYSE:TS?

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.
Looking at the Return On Invested Capital, with a value of 22.43%, TS belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
TS's Profit Margin of 24.75% is amongst the best of the industry. TS outperforms 98.46% of its industry peers.
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 96.92% of the companies in the same industry.
In the last couple of years the Operating Margin of TS has grown nicely.
TS has a Gross Margin of 43.25%. This is amongst the best in the industry. TS outperforms 87.69% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.

ChartMill's Evaluation of Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TS has received a 9 out of 10:

An Altman-Z score of 6.24 indicates that TS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.24, TS belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
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.
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.
Looking at the Debt to Equity ratio, with a value of 0.01, TS belongs to the top of the industry, outperforming 92.31% 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.
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.
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.
Looking at the Quick ratio, with a value of 2.21, TS belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.

Growth Insights: 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:

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
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.

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.

Keep in mind

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.