Our stock screening tool has identified TENARIS SA-ADR (NYSE:TS) as an undervalued gem with strong fundamentals. NYSE:TS boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.
Valuation Insights: NYSE:TS
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 8 reflects its valuation:
- The Price/Earnings ratio is 6.30, which indicates a rather cheap valuation of TS.
- 96.97% of the companies in the same industry are more expensive than TS, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of TS to the average of the S&P500 Index (26.50), we can say TS is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.85 indicates a reasonable valuation of TS.
- Based on the Price/Forward Earnings ratio, TS is valued cheaply inside the industry as 80.30% 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 22.80.
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TS indicates a rather cheap valuation: TS is cheaper than 90.91% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TS indicates a rather cheap valuation: TS is cheaper than 89.39% of the companies listed in the same industry.
- TS has an outstanding profitability rating, which may justify a higher PE ratio.
Profitability Analysis for NYSE:TS
ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:TS has earned a 8 out of 10:
- The Return On Assets of TS (18.13%) is better than 95.45% of its industry peers.
- The Return On Equity of TS (22.16%) is better than 87.88% of its industry peers.
- The Return On Invested Capital of TS (21.83%) is better than 98.48% of its industry peers.
- TS's Profit Margin of 23.86% is amongst the best of the industry. TS outperforms 96.97% 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.
- The Gross Margin of TS (42.87%) is better than 84.85% of its industry peers.
- In the last couple of years the Gross Margin of TS has grown nicely.
Health Insights: NYSE:TS
Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TS has achieved a 9 out of 10:
- An Altman-Z score of 6.81 indicates that TS is not in any danger for bankruptcy at the moment.
- TS has a Altman-Z score of 6.81. This is amongst the best in the industry. TS outperforms 95.45% of its industry peers.
- TS has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
- TS has a Debt to FCF ratio of 0.21. This is amongst the best in the industry. TS outperforms 92.42% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.01, TS belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
- 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 better Current ratio (3.94) than 92.42% of its industry peers.
- A Quick Ratio of 2.40 indicates that TS has no problem at all paying its short term obligations.
- The Quick ratio of TS (2.40) is better than 84.85% of its industry peers.
Unpacking NYSE:TS's Growth Rating
ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:TS was assigned a score of 5 for growth:
- 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.
- Looking at the last year, TS shows a very strong growth in Revenue. 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.
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Keep in mind
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.