TENARIS SA-ADR (TS) Stock Fundamental Analysis
USA - NYSE:TS - US88031M1099 - ADR
40.68 USD
-0.28 (-0.68%)
40.68 USD
0 (0%)
TS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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. TS also has an excellent dividend rating. These ratings would make TS suitable for dividend investing!
1. Profitability
1.1 Basic Checks
TS had positive earnings in the past year.
In the past year TS had a positive cash flow from operations.
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
The Return On Assets of TS (9.77%) is better than 93.33% of its industry peers.
TS's Return On Equity of 11.74% is fine compared to the rest of the industry. TS outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.23%, TS is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TS is significantly above the industry average of 7.85%.
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
The Profit Margin of TS (16.91%) is better than 93.33% of its industry peers.
TS's Profit Margin has improved in the last couple of years.
TS's Operating Margin of 18.86% is amongst the best of the industry. TS outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of TS has grown nicely.
TS has a Gross Margin of 34.05%. This is in the better half of the industry: TS outperforms 73.33% of its industry peers.
TS'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
TS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TS has less shares outstanding
The debt/assets ratio for TS has been reduced compared to a year ago.
2.2 Solvency
TS has an Altman-Z score of 6.28. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
TS has a better Altman-Z score (6.28) 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.
The Debt to FCF ratio of TS (0.29) is better than 93.33% of its industry peers.
TS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TS (0.01) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.28 |
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%.
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.
Looking at the last year, TS shows a decrease in Revenue. The Revenue has decreased by -9.64% in the last 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
The Earnings Per Share is expected to decrease by -0.48% on average over the next years.
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.
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
A Price/Earnings ratio of 10.79 indicates a reasonable valuation of TS.
90.00% of the companies in the same industry are more expensive than TS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, TS is valued rather cheaply.
TS is valuated reasonably with a Price/Forward Earnings ratio of 10.87.
Based on the Price/Forward Earnings ratio, TS is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TS to the average of the S&P500 Index (34.59), we can say TS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TS is valued a bit cheaper than the industry average as 61.67% of the companies are valued more expensively.
TS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.95 | ||
| EV/EBITDA | 5.72 |
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)1.61
PEG (5Y)0.46
EPS Next 2Y1.79%
EPS Next 3Y2.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.09%, TS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.91, 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 2.36, 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 paid a dividend for at least 10 years, which is 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%
40.68
-0.28 (-0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners13.42%
Inst Owner Change-17.33%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap21.13B
Revenue(TTM)11.83B
Net Income(TTM)2.00B
Analysts76.67
Price Target42.61 (4.74%)
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)0.06%
PT rev (3m)0.58%
EPS NQ rev (1m)-10.04%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)-5.29%
EPS NY rev (3m)-11.68%
Revenue NQ rev (1m)-1.2%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 10.87 | ||
| P/S | 1.79 | ||
| P/FCF | 12.95 | ||
| P/OCF | 9.17 | ||
| P/B | 1.24 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 5.72 |
EPS(TTM)3.77
EY9.27%
EPS(NY)3.74
Fwd EY9.2%
FCF(TTM)3.14
FCFY7.72%
OCF(TTM)4.44
OCFY10.91%
SpS22.78
BVpS32.8
TBVpS30.19
PEG (NY)1.61
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 | 6.28 |
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 10.79 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.