NYSE:TS appears to be flying under the radar despite its strong fundamentals.

Last update: Feb 16, 2024

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.

Looking at the Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:TS scores a 9 out of 10:

A Price/Earnings ratio of 4.04 indicates a rather cheap valuation of TS.
Based on the Price/Earnings ratio, TS is valued cheaply inside the industry as 98.46% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TS to the average of the S&P500 Index (26.56), we can say TS is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.81, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.62, TS is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, TS is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
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 Assessment of 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:

TS has a better Return On Assets (18.13%) than 98.46% of its industry peers.
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.
TS has a Return On Invested Capital of 21.90%. This is amongst the best in the industry. TS outperforms 96.92% of its industry peers.
With an excellent Profit Margin value of 23.86%, TS belongs to the best 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'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.
TS has a Gross Margin of 42.87%. This is amongst the best in the industry. TS outperforms 86.15% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.

Health Assessment of NYSE:TS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TS has earned a 9 out of 10:

An Altman-Z score of 6.21 indicates that TS is not in any danger for bankruptcy at the moment.
TS's Altman-Z score of 6.21 is amongst the best of the industry. TS outperforms 93.85% of its industry peers.
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 90.77% 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.
With an excellent Debt to Equity ratio value of 0.01, TS belongs to the best of the industry, outperforming 87.69% 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.
The Current ratio of TS (3.94) is better than 90.77% of its industry peers.
A Quick Ratio of 2.40 indicates that TS has no problem at all paying its short term obligations.
TS has a Quick ratio of 2.40. This is amongst the best in the industry. TS outperforms 86.15% of its industry peers.

Evaluating Growth: 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:

The Earnings Per Share has grown by an impressive 121.86% 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.
Looking at the last year, TS shows a very strong growth in Revenue. 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.

Our latest full fundamental report of TS contains the most current fundamental analsysis.

Disclaimer

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.