Why NYSE:TS is a Top Pick for Dividend Investors.

Last update: Aug 5, 2024

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

Evaluating Dividend: NYSE:TS

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:TS has received a 7 out of 10:

TS has a Yearly Dividend Yield of 4.24%, which is a nice return.
TS's Dividend Yield is rather good when compared to the industry average which is at 3.07. TS pays more dividend than 92.31% of the companies in the same industry.
TS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
TS has been paying a dividend for at least 10 years, so it has a reliable track record.
TS pays out 16.25% of its income as dividend. This is a sustainable payout ratio.

Evaluating Health: 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 5.11. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
TS has a better Altman-Z score (5.11) than 95.38% 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's Debt to FCF ratio of 0.19 is amongst the best of the industry. TS outperforms 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's Debt to Equity ratio of 0.01 is amongst the best of the industry. TS outperforms 89.23% 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 better Current ratio (3.62) than 87.69% 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 in the better half of the industry: TS outperforms 80.00% of its industry peers.

What does the Profitability looks like for NYSE:TS

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:TS scores a 9 out of 10:

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.
The Return On Equity of TS (23.26%) is better than 90.77% of its industry peers.
The Return On Invested Capital of TS (19.52%) is better than 100.00% 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 7.62%.
The 3 year average ROIC (13.95%) for TS is below the current ROIC(19.52%), indicating increased profibility in the last year.
TS's Profit Margin of 26.35% is amongst the best of the industry. TS outperforms 96.92% of its industry peers.
TS's Profit Margin has improved in the last couple of years.
TS's Operating Margin of 28.80% is amongst the best of the industry. TS outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of TS has grown nicely.
TS has a Gross Margin of 41.70%. This is amongst the best in the industry. TS outperforms 81.54% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend 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.