TENARIS SA-ADR (TS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TS - US88031M1099 - ADR
39.62 USD
+0.06 (+0.15%)
39.55 USD
-0.07 (-0.18%)
TS gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 60 industry peers in the Energy Equipment & Services industry. TS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TS is valued quite cheap, but it does not seem to be growing. TS also has an excellent dividend rating. These ratings would make TS suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
TS had positive earnings in the past year.
TS had a positive operating cash flow in the past year.
TS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TS had a positive operating cash flow.
1.2 Ratios
TS has a better Return On Assets (9.77%) than 93.33% of its industry peers.
With a decent Return On Equity value of 11.74%, TS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.23%, TS is doing good in the industry, outperforming 78.33% of the companies in the same industry.
TS had an Average Return On Invested Capital over the past 3 years of 16.25%. This is significantly above the industry average of 7.66%.
The 3 year average ROIC (16.25%) for TS 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
TS has a Profit Margin of 16.91%. This is amongst the best in the industry. TS outperforms 93.33% of its industry peers.
In the last couple of years the Profit Margin of TS has grown nicely.
With an excellent Operating Margin value of 18.86%, TS belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
TS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.05%, TS is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Gross Margin of TS has grown nicely.
| 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
TS 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 TS has been reduced compared to 1 year ago.
The number of shares outstanding for TS has been reduced compared to 5 years ago.
TS has a better debt/assets ratio than last year.
2.2 Solvency
TS has an Altman-Z score of 6.15. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TS (6.15) is better than 96.67% of its industry peers.
TS 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, TS belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.01, TS belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.15 |
ROIC/WACC1.36
WACC7.54%
2.3 Liquidity
A Current Ratio of 4.08 indicates that TS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.08, TS belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
TS has a Quick Ratio of 2.55. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
TS has a Quick ratio of 2.55. This is amongst the best in the industry. TS outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
TS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.98%.
Measured over the past years, TS shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.23% on average per year.
TS shows a decrease in Revenue. In the last year, the revenue decreased by -9.64%.
TS 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 3Y24.76%
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
TS 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 Y6.71%
EPS Next 2Y1.79%
EPS Next 3Y2.3%
EPS Next 5Y-0.48%
Revenue Next Year-4.25%
Revenue Next 2Y-1.76%
Revenue Next 3Y-0.03%
Revenue Next 5Y1.51%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TS is valuated reasonably with a Price/Earnings ratio of 10.51.
Based on the Price/Earnings ratio, TS is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
TS is valuated cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.59, which indicates a very decent valuation of TS.
Based on the Price/Forward Earnings ratio, TS is valued cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, TS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TS is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TS is valued a bit cheaper than the industry average as 61.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.61 | ||
| EV/EBITDA | 5.47 |
4.3 Compensation for Growth
TS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TS may justify a higher PE ratio.
PEG (NY)1.57
PEG (5Y)0.45
EPS Next 2Y1.79%
EPS Next 3Y2.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.13%, TS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.03, TS pays a better dividend. On top of this TS pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
5.2 History
On average, the dividend of TS grows each year by 10.42%, which is quite nice.
TS has been paying a dividend for at least 10 years, so it has a reliable track record.
TS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.42%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
44.97% of the earnings are spent on dividend by TS. This is a bit on the high side, but may be sustainable.
DP44.97%
EPS Next 2Y1.79%
EPS Next 3Y2.3%
39.62
+0.06 (+0.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners13.42%
Inst Owner Change-39.48%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap20.58B
Revenue(TTM)11.83B
Net Income(TTM)2.00B
Analysts76.67
Price Target43.29 (9.26%)
Short Float %4.71%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Yearly Dividend0.67
Dividend Growth(5Y)10.42%
DP44.97%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.37%
Min EPS beat(2)-11.07%
Max EPS beat(2)-3.68%
EPS beat(4)1
Avg EPS beat(4)2.73%
Min EPS beat(4)-19.77%
Max EPS beat(4)45.42%
EPS beat(8)4
Avg EPS beat(8)10.86%
EPS beat(12)6
Avg EPS beat(12)7.64%
EPS beat(16)9
Avg EPS beat(16)9.55%
Revenue beat(2)2
Avg Revenue beat(2)2.76%
Min Revenue beat(2)2.14%
Max Revenue beat(2)3.37%
Revenue beat(4)3
Avg Revenue beat(4)2.06%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)3.88%
Revenue beat(8)6
Avg Revenue beat(8)2.83%
Revenue beat(12)10
Avg Revenue beat(12)2.95%
Revenue beat(16)14
Avg Revenue beat(16)2.58%
PT rev (1m)1.68%
PT rev (3m)2.2%
EPS NQ rev (1m)-30.26%
EPS NQ rev (3m)-27.4%
EPS NY rev (1m)-5.35%
EPS NY rev (3m)-11.47%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 10.59 | ||
| P/S | 1.74 | ||
| P/FCF | 12.61 | ||
| P/OCF | 8.93 | ||
| P/B | 1.21 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 5.47 |
EPS(TTM)3.77
EY9.52%
EPS(NY)3.74
Fwd EY9.45%
FCF(TTM)3.14
FCFY7.93%
OCF(TTM)4.44
OCFY11.2%
SpS22.78
BVpS32.81
TBVpS30.19
PEG (NY)1.57
PEG (5Y)0.45
Graham Number52.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 11.74% | ||
| ROCE | 12.28% | ||
| ROIC | 10.23% | ||
| ROICexc | 12.25% | ||
| ROICexgc | 13.45% | ||
| OM | 18.86% | ||
| PM (TTM) | 16.91% | ||
| GM | 34.05% | ||
| FCFM | 13.8% |
ROA(3y)14.36%
ROA(5y)9.22%
ROE(3y)17.97%
ROE(5y)11.49%
ROIC(3y)16.25%
ROIC(5y)N/A
ROICexc(3y)19.35%
ROICexc(5y)N/A
ROICexgc(3y)21.4%
ROICexgc(5y)N/A
ROCE(3y)19.51%
ROCE(5y)N/A
ROICexgc growth 3Y37.2%
ROICexgc growth 5Y17.07%
ROICexc growth 3Y38.27%
ROICexc growth 5Y18.31%
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%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 108.27% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.79% | ||
| Profit Quality | 81.61% | ||
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z | 6.15 |
F-Score6
WACC7.54%
ROIC/WACC1.36
Cap/Depr(3y)96.54%
Cap/Depr(5y)71.87%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.14%
Profit Quality(3y)77.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.98%
EPS 3Y24.76%
EPS 5Y23.23%
EPS Q2Q%10.26%
EPS Next Y6.71%
EPS Next 2Y1.79%
EPS Next 3Y2.3%
EPS Next 5Y-0.48%
Revenue 1Y (TTM)-9.64%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%2.15%
Revenue Next Year-4.25%
Revenue Next 2Y-1.76%
Revenue Next 3Y-0.03%
Revenue Next 5Y1.51%
EBIT growth 1Y-17.16%
EBIT growth 3Y47.51%
EBIT growth 5Y24.84%
EBIT Next Year14.46%
EBIT Next 3Y4.78%
EBIT Next 5Y2.42%
FCF growth 1Y-53.5%
FCF growth 3YN/A
FCF growth 5Y12.92%
OCF growth 1Y-43.56%
OCF growth 3Y188.73%
OCF growth 5Y13.41%
TENARIS SA-ADR / TS FAQ
Can you provide the ChartMill fundamental rating for TENARIS SA-ADR?
ChartMill assigns a fundamental rating of 8 / 10 to TS.
What is the valuation status of TENARIS SA-ADR (TS) stock?
ChartMill assigns a valuation rating of 7 / 10 to TENARIS SA-ADR (TS). This can be considered as Undervalued.
Can you provide the profitability details for TENARIS SA-ADR?
TENARIS SA-ADR (TS) has a profitability rating of 9 / 10.
What is the valuation of TENARIS SA-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TENARIS SA-ADR (TS) is 10.51 and the Price/Book (PB) ratio is 1.21.
What is the expected EPS growth for TENARIS SA-ADR (TS) stock?
The Earnings per Share (EPS) of TENARIS SA-ADR (TS) is expected to grow by 6.71% in the next year.