NYSE:TS is probably undervalued for the fundamentals it is displaying.

Last update: Aug 6, 2024

Discover TENARIS SA-ADR (NYSE:TS), an undervalued stock highlighted by our stock screener. NYSE:TS showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Assessing Valuation Metrics 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:

A Price/Earnings ratio of 5.73 indicates a rather cheap valuation of TS.
Based on the Price/Earnings ratio, TS is valued cheaper than 98.46% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.44, TS is valued rather cheaply.
A Price/Forward Earnings ratio of 6.99 indicates a rather cheap valuation of TS.
Based on the Price/Forward Earnings ratio, TS is valued cheaper than 87.69% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.90, TS is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, TS is valued cheaper than 98.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TS is valued cheaper than 93.85% of the companies in the same industry.
TS has an outstanding profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

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 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.
With an excellent Return On Invested Capital value of 19.52%, TS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TS is significantly above the industry average of 7.68%.
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.
TS's Profit Margin of 26.35% is amongst the best of the industry. TS outperforms 96.92% of its industry peers.
In the last couple of years the Profit Margin of TS has grown nicely.
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's Gross Margin of 41.70% is amongst the best of the industry. TS outperforms 81.54% of its industry peers.
TS's Gross Margin has improved in the last couple of years.

A Closer Look at Health for NYSE:TS

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:TS has earned a 10 out of 10:

An Altman-Z score of 5.10 indicates that TS is not in any danger for bankruptcy at the moment.
The Altman-Z score of TS (5.10) is better than 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.
TS has a Debt to FCF ratio of 0.19. This is amongst the best in 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.
A Current Ratio of 3.62 indicates that TS has no problem at all paying 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's Quick ratio of 2.27 is fine compared to the rest of the industry. TS outperforms 80.00% of its industry peers.

Exploring NYSE:TS's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:TS scores a 4 out of 10:

The Earnings Per Share has been growing by 35.10% on average over the past years. This is a very strong growth
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.

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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.