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

Last update: Dec 14, 2023

Consider TENARIS SA-ADR (NYSE:TS) as a top value stock, identified by our stock screening tool. NYSE:TS shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

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:

The Price/Earnings ratio is 4.18, which 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 (25.40), we can say TS is valued rather cheaply.
The Price/Forward Earnings ratio is 6.85, which indicates a rather cheap valuation of TS.
80.00% of the companies in the same industry are more expensive than TS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.94. TS is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, TS is valued cheaper than 93.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TS is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
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.

Understanding NYSE:TS's Profitability

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:

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

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:TS scores a 9 out of 10:

TS has an Altman-Z score of 6.33. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.33, 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.
TS has a Debt to FCF ratio of 0.21. This is amongst the best in the industry. TS outperforms 90.77% 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.
With an excellent Debt to Equity ratio value of 0.01, TS belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
A Current Ratio of 3.94 indicates that TS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.94, TS belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
TS has a Quick Ratio of 2.40. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
TS has a better Quick ratio (2.40) than 86.15% of its industry peers.

Growth Insights: NYSE:TS

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:TS has earned a 5 for growth:

The Earnings Per Share has grown by an impressive 122.66% 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 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.

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

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

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.