Don't overlook NYSE:TS—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Jun 3, 2024

Discover TENARIS SA-ADR (NYSE:TS)—an undervalued stock our stock screener has picked out. NYSE:TS demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

How do we evaluate the Valuation 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:

Based on the Price/Earnings ratio of 5.41, the valuation of TS can be described as very cheap.
Based on the Price/Earnings ratio, TS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.06. TS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.43, which indicates a very decent valuation of TS.
70.77% of the companies in the same industry are more expensive than TS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TS to the average of the S&P500 Index (20.05), we can say 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 98.46% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TS is valued cheaper than 90.77% of the companies in the same industry.
The excellent profitability rating of TS may justify a higher PE ratio.

Exploring NYSE:TS's 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 9 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 18.58%, TS belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
TS has a Return On Equity of 23.26%. This is amongst the best in the industry. TS outperforms 89.23% of its industry peers.
With an excellent Return On Invested Capital value of 19.52%, TS belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
TS had an Average Return On Invested Capital over the past 3 years of 13.95%. This is significantly above the industry average of 8.00%.
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.
Looking at the Profit Margin, with a value of 26.35%, TS belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
TS's Profit Margin has improved in the last couple of years.
The Operating Margin of TS (28.80%) is better than 95.38% of its industry peers.
TS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.70%, TS belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
In the last couple of years the Gross Margin of TS has grown nicely.

Assessing Health Metrics 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 10 out of 10:

An Altman-Z score of 5.56 indicates that TS is not in any danger for bankruptcy at the moment.
TS has a Altman-Z score of 5.56. This is amongst the best in the industry. TS outperforms 93.85% of its industry peers.
The Debt to FCF ratio of TS is 0.19, which is an excellent value as it means it would take TS, only 0.19 years of fcf income to pay off all of its debts.
TS has a better Debt to FCF ratio (0.19) 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.
TS has a better Debt to Equity ratio (0.01) than 90.77% of its industry peers.
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 Current ratio of 3.62. This is amongst the best in the industry. TS outperforms 89.23% of its industry peers.
A Quick Ratio of 2.27 indicates that TS has no problem at all paying its short term obligations.
TS has a Quick ratio of 2.27. This is amongst the best in the industry. TS outperforms 81.54% of its industry peers.

Understanding NYSE:TS's Growth

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 4 reflects its growth potential:

The Earnings Per Share has grown by an nice 11.90% 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.
The Revenue has been growing by 14.19% 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

Disclaimer

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.