NYSE:TS stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Nov 8, 2024

Our stock screening tool has pinpointed TENARIS SA-ADR (NYSE:TS) as an undervalued stock. NYSE:TS maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Evaluating Valuation: NYSE:TS

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:TS boasts a 8 out of 10:

Based on the Price/Earnings ratio of 6.75, the valuation of TS can be described as very cheap.
Based on the Price/Earnings ratio, TS is valued cheaper than 95.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.94. TS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.32, the valuation of TS can be described as reasonable.
Based on the Price/Forward Earnings ratio, TS is valued a bit cheaper than 76.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. TS is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, TS is valued cheaper than 83.33% of the companies in the same industry.
TS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TS is cheaper than 90.00% of the companies in the same industry.
The excellent profitability rating of TS may justify a higher PE ratio.

Understanding NYSE:TS's 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:

The Return On Assets of TS (12.98%) is better than 93.33% of its industry peers.
Looking at the Return On Equity, with a value of 16.39%, TS is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.54%, TS belongs to the best of the industry, outperforming 90.00% 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 8.37%.
The 3 year average ROIC (13.95%) for TS is below the current ROIC(14.54%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 20.41%, TS belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
TS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.44%, TS belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
In the last couple of years the Operating Margin of TS has grown nicely.
TS has a Gross Margin of 37.60%. This is in the better half of the industry: TS outperforms 73.33% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.

Analyzing Health Metrics

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 9 out of 10:

An Altman-Z score of 5.45 indicates that TS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.45, TS belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
The Debt to FCF ratio of TS is 0.23, which is an excellent value as it means it would take TS, only 0.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TS (0.23) is better than 95.00% of its industry peers.
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 91.67% of its industry peers.
A Current Ratio of 3.11 indicates that TS has no problem at all paying its short term obligations.
TS has a Current ratio of 3.11. This is amongst the best in the industry. TS outperforms 83.33% of its industry peers.
TS's Quick ratio of 1.89 is fine compared to the rest of the industry. TS outperforms 80.00% of its industry peers.

Exploring NYSE:TS's Growth

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:

The Earnings Per Share has been growing by 35.10% on average over the past years. This is a very strong growth
TS shows a strong growth in Revenue. In the last year, 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.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.