TENARIS SA-ADR (TS) Stock Fundamental Analysis
NYSE:TS - New York Stock Exchange, Inc. - US88031M1099 - ADR
We assign a fundamental rating of 7 out of 10 to TS. TS was compared to 58 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 quite cheap, but it does not seem to be growing. These ratings could make TS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year TS was profitable.
In the past year TS had a positive cash flow from operations.
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 12.53%. This is amongst the best in the industry. TS outperforms 91.38% of its industry peers.
TS has a Return On Equity of 15.40%. This is in the better half of the industry: TS outperforms 68.97% of its industry peers.
TS's Return On Invested Capital of 12.13% is amongst the best of the industry. TS outperforms 82.76% of its industry peers.
TS had an Average Return On Invested Capital over the past 3 years of 13.95%. This is significantly above the industry average of 8.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.53% | ||
| ROE | 15.4% | ||
| ROIC | 12.13% |
ROA(3y)13.58%
ROA(5y)8.23%
ROE(3y)16.94%
ROE(5y)10.28%
ROIC(3y)13.95%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 20.23%, TS belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
In the last couple of years the Profit Margin of TS has grown nicely.
TS's Operating Margin of 20.57% is amongst the best of the industry. TS outperforms 82.76% of its industry peers.
TS's Operating Margin has improved in the last couple of years.
TS has a Gross Margin of 36.35%. This is in the better half of the industry: TS outperforms 72.41% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.57% | ||
| PM (TTM) | 20.23% | ||
| GM | 36.35% |
OM growth 3YN/A
OM growth 5Y20.38%
PM growth 3YN/A
PM growth 5Y18.16%
GM growth 3Y26.53%
GM growth 5Y6.06%
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.
Compared to 1 year ago, TS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.84 indicates that TS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.84, TS belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
The Debt to FCF ratio of TS is 0.26, which is an excellent value as it means it would take TS, only 0.26 years of fcf income to pay off all of its debts.
TS has a Debt to FCF ratio of 0.26. This is amongst the best in the industry. TS outperforms 96.55% 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.
TS has a better Debt to Equity ratio (0.01) than 94.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 5.84 |
ROIC/WACC1.69
WACC7.17%
2.3 Liquidity
A Current Ratio of 3.65 indicates that TS has no problem at all paying its short term obligations.
TS has a better Current ratio (3.65) than 87.93% of its industry peers.
A Quick Ratio of 2.27 indicates that TS has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.27, TS belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The earnings per share for TS have decreased strongly by -25.25% in the last year.
Measured over the past years, TS shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.10% on average per year.
TS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.14%.
The Revenue has been growing by 14.19% on average over the past years. This is quite good.
EPS 1Y (TTM)-25.25%
EPS 3YN/A
EPS 5Y35.1%
EPS Q2Q%-15.22%
Revenue 1Y (TTM)-13.14%
Revenue growth 3Y42.42%
Revenue growth 5Y14.19%
Sales Q2Q%-9.96%
3.2 Future
Based on estimates for the next years, TS will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.72% on average per year.
The Revenue is expected to decrease by -3.82% on average over the next years.
EPS Next Y-41.99%
EPS Next 2Y-23.38%
EPS Next 3Y-15.87%
EPS Next 5Y-12.72%
Revenue Next Year-14.27%
Revenue Next 2Y-7.73%
Revenue Next 3Y-5.04%
Revenue Next 5Y-3.82%
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.
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
The Price/Earnings ratio is 8.37, which indicates a very decent valuation of TS.
Based on the Price/Earnings ratio, TS is valued cheaper than 94.83% of the companies in the same industry.
When comparing the Price/Earnings ratio of TS to the average of the S&P500 Index (28.29), we can say TS is valued rather cheaply.
A Price/Forward Earnings ratio of 9.75 indicates a reasonable valuation of TS.
Based on the Price/Forward Earnings ratio, TS is valued cheaper than 87.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, TS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TS indicates a somewhat cheap valuation: TS is cheaper than 75.86% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TS indicates a somewhat cheap valuation: TS is cheaper than 79.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 4.71 |
4.3 Compensation for Growth
TS has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TS's earnings are expected to decrease with -15.87% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-23.38%
EPS Next 3Y-15.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, TS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, TS pays a better dividend. On top of this TS pays more dividend than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, TS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of TS has a limited annual growth rate of 5.74%.
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)5.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
TS pays out 26.18% of its income as dividend. This is a sustainable payout ratio.
DP26.18%
EPS Next 2Y-23.38%
EPS Next 3Y-15.87%
TENARIS SA-ADR
NYSE:TS (1/22/2025, 10:41:10 AM)
39.07
-0.14 (-0.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners11.81%
Inst Owner Change-1.25%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap21.19B
Analysts77.5
Price Target41 (4.94%)
Short Float %2.43%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend0.54
Dividend Growth(5Y)5.74%
DP26.18%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.35%
Min EPS beat(2)-38.91%
Max EPS beat(2)18.2%
EPS beat(4)3
Avg EPS beat(4)19%
Min EPS beat(4)-38.91%
Max EPS beat(4)76.02%
EPS beat(8)5
Avg EPS beat(8)10.1%
EPS beat(12)8
Avg EPS beat(12)11.83%
EPS beat(16)12
Avg EPS beat(16)157.92%
Revenue beat(2)2
Avg Revenue beat(2)3.21%
Min Revenue beat(2)1.36%
Max Revenue beat(2)5.06%
Revenue beat(4)3
Avg Revenue beat(4)3.59%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)8.34%
Revenue beat(8)7
Avg Revenue beat(8)3.39%
Revenue beat(12)11
Avg Revenue beat(12)2.75%
Revenue beat(16)15
Avg Revenue beat(16)3.6%
PT rev (1m)1.47%
PT rev (3m)-1.97%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-20.85%
EPS NY rev (1m)0.39%
EPS NY rev (3m)7.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.88%
Revenue NY rev (1m)1.21%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 9.75 | ||
| P/S | 1.62 | ||
| P/FCF | 8.42 | ||
| P/OCF | 6.6 | ||
| P/B | 1.23 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 4.71 |
EPS(TTM)4.67
EY11.95%
EPS(NY)4.01
Fwd EY10.26%
FCF(TTM)4.64
FCFY11.87%
OCF(TTM)5.92
OCFY15.15%
SpS24.14
BVpS31.71
TBVpS29.21
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.53% | ||
| ROE | 15.4% | ||
| ROCE | 14.62% | ||
| ROIC | 12.13% | ||
| ROICexc | 14.99% | ||
| ROICexgc | 16.49% | ||
| OM | 20.57% | ||
| PM (TTM) | 20.23% | ||
| GM | 36.35% | ||
| FCFM | 19.21% |
ROA(3y)13.58%
ROA(5y)8.23%
ROE(3y)16.94%
ROE(5y)10.28%
ROIC(3y)13.95%
ROIC(5y)N/A
ROICexc(3y)16.32%
ROICexc(5y)N/A
ROICexgc(3y)18.12%
ROICexgc(5y)N/A
ROCE(3y)16.82%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y30.4%
ROICexc growth 3YN/A
ROICexc growth 5Y31.34%
OM growth 3YN/A
OM growth 5Y20.38%
PM growth 3YN/A
PM growth 5Y18.16%
GM growth 3Y26.53%
GM growth 5Y6.06%
F-Score4
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 111.74% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.82% | ||
| Profit Quality | 94.94% | ||
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 5.84 |
F-Score4
WACC7.17%
ROIC/WACC1.69
Cap/Depr(3y)73.15%
Cap/Depr(5y)62.6%
Cap/Sales(3y)3.76%
Cap/Sales(5y)3.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.25%
EPS 3YN/A
EPS 5Y35.1%
EPS Q2Q%-15.22%
EPS Next Y-41.99%
EPS Next 2Y-23.38%
EPS Next 3Y-15.87%
EPS Next 5Y-12.72%
Revenue 1Y (TTM)-13.14%
Revenue growth 3Y42.42%
Revenue growth 5Y14.19%
Sales Q2Q%-9.96%
Revenue Next Year-14.27%
Revenue Next 2Y-7.73%
Revenue Next 3Y-5.04%
Revenue Next 5Y-3.82%
EBIT growth 1Y-40.85%
EBIT growth 3YN/A
EBIT growth 5Y37.46%
EBIT Next Year-27.93%
EBIT Next 3Y-10.98%
EBIT Next 5Y-8.33%
FCF growth 1Y632.46%
FCF growth 3Y41.74%
FCF growth 5Y70.59%
OCF growth 1Y365.65%
OCF growth 3Y42.45%
OCF growth 5Y48.39%