When you look at NYSE:TS, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Nov 23, 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.

ChartMill's Evaluation of Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:TS was assigned a score of 9 for valuation:

A Price/Earnings ratio of 4.19 indicates a rather cheap valuation of TS.
TS's Price/Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 96.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of TS to the average of the S&P500 Index (24.54), we can say TS is valued rather cheaply.
TS is valuated cheaply with a Price/Forward Earnings ratio of 6.87.
Based on the Price/Forward Earnings ratio, TS is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.58, 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 93.85% of the companies listed in the same industry.
TS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TS is cheaper than 90.77% 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.

Assessing Profitability for 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:

The Return On Assets of TS (18.13%) is better than 96.92% of its industry peers.
Looking at the Return On Equity, with a value of 22.16%, TS belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
TS's Return On Invested Capital of 21.90% is amongst the best of the industry. TS outperforms 96.92% of its industry peers.
TS has a Profit Margin of 23.86%. 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.
TS's Operating Margin of 30.43% is amongst the best of the industry. TS outperforms 96.92% of its industry peers.
TS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 42.87%, TS belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
TS's Gross Margin has improved in the last couple of years.

Health Analysis for NYSE:TS

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:

TS has an Altman-Z score of 6.36. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.36, TS belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
The Debt to FCF ratio of TS is 0.21, which is an excellent value as it means it would take TS, only 0.21 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.21, TS belongs to the best of the industry, outperforming 92.31% 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.
TS has a better Debt to Equity ratio (0.01) than 90.77% of its industry peers.
TS has a Current Ratio of 3.94. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
TS has a Current ratio of 3.94. This is amongst the best in the industry. TS outperforms 92.31% of its industry peers.
A Quick Ratio of 2.40 indicates that TS has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.40, TS belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.

Evaluating Growth: NYSE:TS

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:TS scores a 5 out of 10:

The Earnings Per Share has grown by an impressive 123.46% over the past year.
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 47.79% 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.

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

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.