NYSE:TS stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jan 26, 2024

Our stock screening tool has pinpointed TENARIS SA-ADR (NYSE:TS) as an undervalued stock. NYSE:TS maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Unpacking NYSE:TS's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:TS, the assigned 9 reflects its valuation:

TS is valuated cheaply with a Price/Earnings ratio of 4.07.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.04, TS is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.64, the valuation of TS can be described as very cheap.
81.54% of the companies in the same industry are more expensive than TS, based on the Price/Forward Earnings ratio.
TS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.95.
96.92% of the companies in the same industry are more expensive than TS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TS is valued 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.
The excellent profitability rating of TS 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:

Looking at the Return On Assets, with a value of 18.13%, TS belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
With an excellent Return On Equity value of 22.16%, TS belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.90%, TS belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
Looking at the Profit Margin, with a value of 23.86%, TS belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
In the last couple of years the Profit Margin of TS has grown nicely.
TS has a Operating Margin of 30.43%. This is amongst the best in the industry. TS outperforms 96.92% of its industry peers.
In the last couple of years the Operating Margin of TS has grown nicely.
The Gross Margin of TS (42.87%) is better than 87.69% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.

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 6.23 indicates that TS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.23, 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's Debt to FCF ratio of 0.21 is amongst the best of 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.
TS's Debt to Equity ratio of 0.01 is amongst the best of the industry. TS outperforms 87.69% of its industry peers.
A Current Ratio of 3.94 indicates that TS has no problem at all paying its short term obligations.
The Current ratio of TS (3.94) is better than 92.31% of its industry peers.
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's Quick ratio of 2.40 is amongst the best of the industry. TS outperforms 86.15% of its industry peers.

How We Gauge Growth 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 121.86%, 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
TS shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.79%.
The Revenue has been growing by 17.34% on average over the past years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill 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.