NYSE:TS is an undervalued gem with solid fundamentals.

Last update: Jun 24, 2024

Our stock screening tool has pinpointed TENARIS SA-ADR (NYSE:TS) as an undervalued stock option. NYSE:TS retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Assessing Valuation Metrics for NYSE:TS

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:

With a Price/Earnings ratio of 4.93, the valuation of TS can be described as very cheap.
98.46% of the companies in the same industry are more expensive than TS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.63, TS is valued rather cheaply.
TS is valuated cheaply with a Price/Forward Earnings ratio of 7.68.
Based on the Price/Forward Earnings ratio, TS is valued a bit cheaper than 73.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TS to the average of the S&P500 Index (20.22), we can say 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TS indicates a rather cheap valuation: TS is cheaper than 92.31% of the companies listed in the same industry.
The excellent profitability rating of TS may justify a higher PE ratio.

Exploring NYSE:TS's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TS was assigned a score of 9 for profitability:

With an excellent Return On Assets value of 18.58%, TS belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
TS has a better Return On Equity (23.26%) than 89.23% 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.
Measured over the past 3 years, the Average Return On Invested Capital for TS is significantly above the industry average of 8.02%.
The 3 year average ROIC (13.95%) for TS is below the current ROIC(19.52%), indicating increased profibility in the last year.
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.
In the last couple of years the Profit Margin of TS has grown nicely.
With an excellent Operating Margin value of 28.80%, TS belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
TS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 41.70%, TS belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
TS's Gross Margin has improved in the last couple of years.

Health Examination for NYSE:TS

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:TS, the assigned 10 reflects its health status:

TS has an Altman-Z score of 5.33. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
TS has a Altman-Z score of 5.33. This is amongst the best in the industry. TS outperforms 93.85% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.19, TS belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
TS's Debt to Equity ratio of 0.01 is amongst the best of the industry. TS outperforms 90.77% of its industry peers.
A Current Ratio of 3.62 indicates that TS has no problem at all paying its short term obligations.
The Current ratio of TS (3.62) is better than 89.23% 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.
TS has a Quick ratio of 2.27. This is amongst the best in the industry. TS outperforms 81.54% of its industry peers.

Evaluating Growth: 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 4 for growth:

TS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.90%, which is quite good.
The Earnings Per Share has been growing by 35.10% on average over the past years. This is a very strong growth
Measured over the past years, TS shows a quite strong growth in Revenue. The Revenue has been growing by 14.19% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of TS for a complete fundamental analysis.

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.