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

Last update: May 13, 2024

TENARIS SA-ADR (NYSE:TS) was identified as a decent value stock by our stock screener. NYSE:TS scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Understanding NYSE:TS's Valuation Score

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 8 out of 10:

A Price/Earnings ratio of 5.06 indicates a rather cheap valuation of TS.
TS's Price/Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 100.00% of the companies in the same industry.
TS is valuated cheaply when we compare the Price/Earnings ratio to 28.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.75, the valuation of TS can be described as very cheap.
Based on the Price/Forward Earnings ratio, TS is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, TS is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TS indicates a rather cheap valuation: TS is cheaper than 96.92% of the companies listed in the same industry.
90.77% of the companies in the same industry are more expensive than TS, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of TS may justify a higher PE ratio.

Evaluating Profitability: NYSE:TS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TS has achieved a 9:

With an excellent Return On Assets value of 18.58%, TS belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
TS's Return On Equity of 23.26% is amongst the best of the industry. TS outperforms 87.69% of its industry peers.
TS's Return On Invested Capital of 19.52% is amongst the best of the industry. TS outperforms 98.46% of its industry peers.
TS had an Average Return On Invested Capital over the past 3 years of 13.95%. This is significantly above the industry average of 8.30%.
The last Return On Invested Capital (19.52%) for TS is above the 3 year average (13.95%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 26.35%, TS belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
In the last couple of years the Profit Margin of TS has grown nicely.
TS has a better Operating Margin (28.80%) than 95.38% of its industry peers.
In the last couple of years the Operating Margin of TS has grown nicely.
With an excellent Gross Margin value of 41.70%, TS belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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 10 out of 10:

TS has an Altman-Z score of 5.66. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.66, TS belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
TS has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
The Debt to FCF ratio of TS (0.19) is better than 93.85% 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.
Looking at the Debt to Equity ratio, with a value of 0.01, TS belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
TS has a Current Ratio of 3.62. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
TS has a better Current ratio (3.62) than 90.77% of its industry peers.
TS has a Quick Ratio of 2.27. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TS (2.27) is better than 83.08% of its industry peers.

Growth Examination for 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:

TS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.17%, which is quite impressive.
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 26.41%.
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.

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.