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

Last update: Mar 8, 2024

Uncover the hidden value in TENARIS SA-ADR (NYSE:TS) as our stock screening tool recommends it as an undervalued choice. NYSE:TS maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Assessing Valuation Metrics for NYSE:TS

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:TS has received a 8 out of 10:

The Price/Earnings ratio is 6.12, which indicates a rather cheap valuation of TS.
Based on the Price/Earnings ratio, TS is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
TS is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
TS is valuated cheaply with a Price/Forward Earnings ratio of 7.93.
Based on the Price/Forward Earnings ratio, TS is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
TS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.06.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TS indicates a rather cheap valuation: TS is cheaper than 89.39% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TS is valued cheaply inside the industry as 89.39% of the companies are valued more expensively.
The excellent profitability rating of TS may justify a higher PE ratio.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TS, the assigned 8 is noteworthy for profitability:

TS has a better Return On Assets (18.13%) than 96.97% of its industry peers.
TS has a better Return On Equity (22.16%) than 89.39% of its industry peers.
TS has a Return On Invested Capital of 21.83%. This is amongst the best in the industry. TS outperforms 98.48% of its industry peers.
TS has a better Profit Margin (23.86%) than 98.48% of its industry peers.
TS's Profit Margin has improved in the last couple of years.
TS has a better Operating Margin (30.21%) than 96.97% of its industry peers.
In the last couple of years the Operating Margin of TS has grown nicely.
TS's Gross Margin of 42.87% is amongst the best of the industry. TS outperforms 84.85% of its industry peers.
TS's Gross Margin has improved in the last couple of years.

How We Gauge Health for NYSE:TS

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:

An Altman-Z score of 6.71 indicates that TS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.71, TS belongs to the best of the industry, outperforming 95.45% 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 90.91% 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.
The Debt to Equity ratio of TS (0.01) is better than 86.36% of its industry peers.
A Current Ratio of 3.94 indicates that TS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.94, TS belongs to the best of the industry, outperforming 90.91% 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.
With an excellent Quick ratio value of 2.40, TS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.

Exploring NYSE:TS's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:TS boasts a 5 out of 10:

The Earnings Per Share has grown by an impressive 70.39% over the past year.
Measured over the past years, TS shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.10% on average per year.
TS shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.79%.
TS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.19% 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

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.