NYSE:TS is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Oct 12, 2023

TENARIS SA-ADR (NYSE:TS) was identified as a decent value stock by our stock screener. NYSE:TS scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

A Closer Look at Valuation 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:

TS is valuated cheaply with a Price/Earnings ratio of 4.06.
Compared to the rest of the industry, the Price/Earnings ratio of TS indicates a rather cheap valuation: TS is cheaper than 98.46% of the companies listed in the same industry.
TS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.04.
Based on the Price/Forward Earnings ratio of 6.76, the valuation of TS can be described as very cheap.
Based on the Price/Forward Earnings ratio, TS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.05, TS is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, TS is valued cheaper than 90.77% of the companies in the same industry.
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.

Profitability Insights: 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.
The Return On Equity of TS (23.46%) is better than 86.15% of its industry peers.
With an excellent Return On Invested Capital value of 22.43%, TS belongs to the best 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.
In the last couple of years the Profit Margin of TS has grown nicely.
TS has a better Operating Margin (30.53%) than 96.92% of its industry peers.
TS's Operating Margin has improved in the last couple of years.
TS has a better Gross Margin (43.25%) than 87.69% of its industry peers.
TS's Gross Margin has improved in the last couple of years.

Looking at the Health

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:

An Altman-Z score of 6.27 indicates that TS is not in any danger for bankruptcy at the moment.
TS's Altman-Z score of 6.27 is amongst the best of the industry. TS outperforms 92.31% of its industry peers.
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.
TS's Debt to FCF ratio of 0.32 is amongst the best of the industry. TS outperforms 96.92% 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 92.31% 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.
TS has a better Current ratio (3.71) than 90.77% of its industry peers.
A Quick Ratio of 2.21 indicates that TS has no problem at all paying its short term obligations.
TS has a Quick ratio of 2.21. This is amongst the best in the industry. TS outperforms 84.62% of its industry peers.

Evaluating Growth: NYSE:TS

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:

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

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

For an up to date full fundamental analysis you can check the fundamental report of TS

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.