Is NYSE:TS a Good Fit for Dividend Investing?

TENARIS SA-ADR (NYSE:TS) has caught the attention of dividend investors as a stock worth considering. NYSE:TS excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Dividend Insights: NYSE:TS

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:TS earns a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.58, TS pays a better dividend. On top of this TS pays more dividend than 84.48% of the companies listed in the same industry.
• TS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
• The dividend of TS is nicely growing with an annual growth rate of 10.42%!
• TS has paid a dividend for at least 10 years, which is a reliable track record.
• TS pays out 37.21% of its income as dividend. This is a sustainable payout ratio.

A Closer Look at Health for NYSE:TS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TS has earned a 10 out of 10:

• An Altman-Z score of 5.68 indicates that TS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of TS (5.68) is better than 93.10% of its industry peers.
• TS has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.27, TS belongs to the top of the industry, outperforming 96.55% 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 has a better Debt to Equity ratio (0.01) than 94.83% of its industry peers.
• A Current Ratio of 3.50 indicates that TS has no problem at all paying its short term obligations.
• TS has a Current ratio of 3.50. This is amongst the best in the industry. TS outperforms 86.21% of its industry peers.
• A Quick Ratio of 2.10 indicates that TS has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 2.10, TS is in the better half of the industry, outperforming 75.86% of the companies in the same industry.

Looking at the 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:

• TS has a Return On Assets of 9.96%. This is amongst the best in the industry. TS outperforms 86.21% of its industry peers.
• The Return On Equity of TS (12.27%) is better than 65.52% of its industry peers.
• With an excellent Return On Invested Capital value of 11.07%, TS belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for TS is significantly above the industry average of 8.07%.
• The 3 year average ROIC (16.25%) for TS is well above the current ROIC(11.07%). The reason for the recent decline needs to be investigated.
• TS has a better Profit Margin (16.26%) than 91.38% of its industry peers.
• In the last couple of years the Profit Margin of TS has grown nicely.
• TS has a Operating Margin of 18.90%. This is amongst the best in the industry. TS outperforms 84.48% of its industry peers.
• In the last couple of years the Operating Margin of TS has grown nicely.
• TS has a Gross Margin of 35.04%. This is in the better half of the industry: TS outperforms 70.69% of its industry peers.
• TS's Gross Margin has improved in the last couple of years.

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

Our latest full fundamental report of TS contains the most current fundamental analsysis.

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.