TENARIS SA-ADR (TS) Stock Fundamental Analysis
USA - NYSE:TS - US88031M1099 - ADR
40.58 USD
-0.06 (-0.15%)
40.55 USD
-0.03 (-0.07%)
Overall TS gets a fundamental rating of 7 out of 10. We evaluated TS against 60 industry peers in the Energy Equipment & Services industry. TS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TS is valued correctly, but it does not seem to be growing. Finally TS also has an excellent dividend rating. These ratings would make TS suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TS was profitable.
TS had a positive operating cash flow in the past year.
Of the past 5 years TS 4 years were profitable.
In the past 5 years TS always reported a positive cash flow from operatings.
1.2 Ratios
TS has a Return On Assets of 9.77%. This is amongst the best in the industry. TS outperforms 91.67% of its industry peers.
Looking at the Return On Equity, with a value of 11.74%, TS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of TS (10.23%) is better than 78.33% of its industry peers.
TS had an Average Return On Invested Capital over the past 3 years of 16.25%. This is significantly above the industry average of 7.82%.
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
With an excellent Profit Margin value of 16.91%, 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.
Looking at the Operating Margin, with a value of 18.86%, TS belongs to the top of the industry, outperforming 85.00% 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.
TS has less shares outstanding than it did 5 years ago.
TS has a better debt/assets ratio than last year.
2.2 Solvency
TS has an Altman-Z score of 6.25. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
TS's Altman-Z score of 6.25 is amongst the best of the industry. TS outperforms 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.
Looking at the Debt to FCF ratio, with a value of 0.29, TS belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
TS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
TS has a better Debt to Equity ratio (0.01) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.25 |
ROIC/WACC1.35
WACC7.57%
2.3 Liquidity
TS has a Current Ratio of 4.08. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
TS's Current ratio of 4.08 is amongst the best of the industry. TS outperforms 88.33% of its industry peers.
A Quick Ratio of 2.55 indicates that TS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.55, TS belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| 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%.
TS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.23% yearly.
The Revenue has decreased by -9.64% in the past year.
Measured over the past years, TS shows a quite strong growth in Revenue. The Revenue has been growing by 11.42% on average per year.
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
Based on estimates for the next years, TS will show a decrease in Earnings Per Share. The EPS will decrease by -0.48% on average per year.
TS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.51% yearly.
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
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
TS is valuated reasonably with a Price/Earnings ratio of 10.76.
TS's Price/Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 90.00% of the companies in the same industry.
TS is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.84, the valuation of TS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TS is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 32.68. TS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
61.67% of the companies in the same industry are more expensive than TS, based on the Enterprise Value to EBITDA ratio.
TS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.91 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.6
PEG (5Y)0.46
EPS Next 2Y1.79%
EPS Next 3Y2.3%
5. Dividend
5.1 Amount
TS has a Yearly Dividend Yield of 4.09%, which is a nice return.
TS's Dividend Yield is rather good when compared to the industry average which is at 2.94. TS pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
5.2 History
The dividend of TS is nicely growing with an annual growth rate of 10.42%!
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
TS 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 2Y1.79%
EPS Next 3Y2.3%
40.58
-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-17.98%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap21.08B
Revenue(TTM)11.83B
Net Income(TTM)2.00B
Analysts76.67
Price Target42.66 (5.13%)
Short Float %3.87%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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)-0.29%
PT rev (3m)2.27%
EPS NQ rev (1m)-10.04%
EPS NQ rev (3m)32.54%
EPS NY rev (1m)-1.86%
EPS NY rev (3m)-8.15%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 10.84 | ||
| P/S | 1.78 | ||
| P/FCF | 12.91 | ||
| P/OCF | 9.15 | ||
| P/B | 1.24 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 5.66 |
EPS(TTM)3.77
EY9.29%
EPS(NY)3.74
Fwd EY9.22%
FCF(TTM)3.14
FCFY7.74%
OCF(TTM)4.44
OCFY10.93%
SpS22.78
BVpS32.8
TBVpS30.19
PEG (NY)1.6
PEG (5Y)0.46
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 | 6.25 |
F-Score6
WACC7.57%
ROIC/WACC1.35
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 7 / 10 to TS.
What is the valuation status of TENARIS SA-ADR (TS) stock?
ChartMill assigns a valuation rating of 6 / 10 to TENARIS SA-ADR (TS). This can be considered as Fairly Valued.
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 10.76 and the Price/Book (PB) ratio is 1.24.
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.