TENARIS SA (TEN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TEN - LU2598331598 - Common Stock
18.925 EUR
+0.21 (+1.15%)
Overall TEN gets a fundamental rating of 7 out of 10. We evaluated TEN against 38 industry peers in the Energy Equipment & Services industry. Both the health and profitability get an excellent rating, making TEN a very profitable company, without any liquidiy or solvency issues. TEN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TEN was profitable.
- TEN had a positive operating cash flow in the past year.
- Of the past 5 years TEN 4 years were profitable.
- In the past 5 years TEN always reported a positive cash flow from operatings.
1.2 Ratios
- TEN has a Return On Assets of 9.77%. This is in the better half of the industry: TEN outperforms 78.95% of its industry peers.
- TEN has a better Return On Equity (11.74%) than 60.53% of its industry peers.
- TEN's Return On Invested Capital of 10.23% is fine compared to the rest of the industry. TEN outperforms 68.42% of its industry peers.
- TEN had an Average Return On Invested Capital over the past 3 years of 16.25%. This is significantly above the industry average of 10.43%.
- The 3 year average ROIC (16.25%) for TEN is well above the current ROIC(10.23%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 11.74% | ||
| ROIC | 10.23% |
ROA(3y)14.36%
ROA(5y)9.22%
ROE(3y)17.97%
ROE(5y)11.49%
ROIC(3y)16.25%
ROIC(5y)N/A
1.3 Margins
- TEN has a better Profit Margin (16.91%) than 81.58% of its industry peers.
- TEN's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 18.86%, TEN is doing good in the industry, outperforming 71.05% of the companies in the same industry.
- TEN's Operating Margin has improved in the last couple of years.
- TEN's Gross Margin of 34.05% is fine compared to the rest of the industry. TEN outperforms 71.05% of its industry peers.
- TEN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.86% | ||
| PM (TTM) | 16.91% | ||
| GM | 34.05% |
OM growth 3Y18.67%
OM growth 5Y12.05%
PM growth 3Y-1.22%
PM growth 5Y9.81%
GM growth 3Y5.93%
GM growth 5Y3.17%
2. Health
2.1 Basic Checks
- TEN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for TEN has been reduced compared to 1 year ago.
- TEN has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TEN has an improved debt to assets ratio.
2.2 Solvency
- TEN has an Altman-Z score of 4.56. This indicates that TEN is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of TEN (4.56) is better than 94.74% of its industry peers.
- TEN has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.29, TEN belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that TEN is not too dependend on debt financing.
- TEN's Debt to Equity ratio of 0.01 is amongst the best of the industry. TEN outperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 4.56 |
ROIC/WACC1.32
WACC7.75%
2.3 Liquidity
- A Current Ratio of 4.08 indicates that TEN has no problem at all paying its short term obligations.
- TEN has a better Current ratio (4.08) than 86.84% of its industry peers.
- A Quick Ratio of 2.55 indicates that TEN has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 2.55, TEN belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
- TEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.98%.
- Measured over the past years, TEN shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.23% on average per year.
- Looking at the last year, TEN shows a decrease in Revenue. The Revenue has decreased by -9.64% in the last year.
- TEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.42% yearly.
EPS 1Y (TTM)-17.98%
EPS 3Y24.77%
EPS 5Y23.23%
EPS Q2Q%10.26%
Revenue 1Y (TTM)-9.64%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%2.15%
3.2 Future
- TEN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.48% yearly.
- The Revenue is expected to grow by 1.51% on average over the next years.
EPS Next Y7.74%
EPS Next 2Y2.2%
EPS Next 3Y3.58%
EPS Next 5Y-0.48%
Revenue Next Year-4.18%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.36%
Revenue Next 5Y1.51%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.83, the valuation of TEN can be described as reasonable.
- TEN's Price/Earnings ratio is a bit cheaper when compared to the industry. TEN is cheaper than 68.42% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, TEN is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.85 indicates a reasonable valuation of TEN.
- The rest of the industry has a similar Price/Forward Earnings ratio as TEN.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, TEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TEN is valued cheaper than 89.47% of the companies in the same industry.
- TEN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TEN is cheaper than 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.05 | ||
| EV/EBITDA | 2.3 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TEN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)0.51
EPS Next 2Y2.2%
EPS Next 3Y3.58%
5. Dividend
5.1 Amount
- TEN has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.61, TEN pays a bit more dividend than its industry peers.
- TEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
- On average, the dividend of TEN grows each year by 10.42%, which is quite nice.
Dividend Growth(5Y)10.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- TEN pays out 44.97% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.97%
EPS Next 2Y2.2%
EPS Next 3Y3.58%
TENARIS SA / TEN.MI FAQ
What is the ChartMill fundamental rating of TENARIS SA (TEN.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to TEN.MI.
What is the valuation status of TENARIS SA (TEN.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to TENARIS SA (TEN.MI). This can be considered as Fairly Valued.
How profitable is TENARIS SA (TEN.MI) stock?
TENARIS SA (TEN.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TENARIS SA (TEN.MI) stock?
The Price/Earnings (PE) ratio for TENARIS SA (TEN.MI) is 11.83 and the Price/Book (PB) ratio is 0.68.
Can you provide the dividend sustainability for TEN stock?
The dividend rating of TENARIS SA (TEN.MI) is 6 / 10 and the dividend payout ratio is 44.97%.