TENARIS SA-ADR (TS) Stock Fundamental Analysis
USA - NYSE:TS - US88031M1099 - ADR
34.67 USD
-0.11 (-0.32%)
34.93 USD
+0.26 (+0.75%)
Taking everything into account, TS scores 7 out of 10 in our fundamental rating. TS was compared to 61 industry peers in the Energy Equipment & Services industry. TS gets an excellent profitability rating and is at the same time showing great financial health properties. TS has a bad growth rate and is valued cheaply. Finally TS also has an excellent dividend rating. These ratings would make TS suitable for value and dividend 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.
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 (9.81%) is better than 90.16% of its industry peers.
The Return On Equity of TS (12.08%) is better than 72.13% of its industry peers.
TS has a better Return On Invested Capital (9.47%) than 73.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TS is significantly above the industry average of 7.95%.
The last Return On Invested Capital (9.47%) for TS is well below the 3 year average (16.25%), which needs to be investigated, but indicates that TS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.81% | ||
| ROE | 12.08% | ||
| ROIC | 9.47% |
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 17.02%, TS belongs to the best of the industry, outperforming 95.08% of the companies in the same industry.
In the last couple of years the Profit Margin of TS has grown nicely.
With a decent Operating Margin value of 17.12%, TS is doing good in the industry, outperforming 77.05% of the companies in the same industry.
TS's Operating Margin has improved in the last couple of years.
TS's Gross Margin of 33.79% is fine compared to the rest of the industry. TS outperforms 70.49% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.12% | ||
| PM (TTM) | 17.02% | ||
| GM | 33.79% |
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.
Compared to 1 year ago, TS has an improved debt to assets ratio.
2.2 Solvency
TS has an Altman-Z score of 5.25. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.25, TS belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
The Debt to FCF ratio of TS is 0.25, which is an excellent value as it means it would take TS, only 0.25 years of fcf income to pay off all of its debts.
TS has a better Debt to FCF ratio (0.25) than 93.44% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
The Debt to Equity ratio of TS (0.01) is better than 91.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 5.25 |
ROIC/WACC1.25
WACC7.57%
2.3 Liquidity
A Current Ratio of 3.41 indicates that TS has no problem at all paying its short term obligations.
The Current ratio of TS (3.41) is better than 86.89% of its industry peers.
A Quick Ratio of 2.11 indicates that TS has no problem at all paying its short term obligations.
TS's Quick ratio of 2.11 is fine compared to the rest of the industry. TS outperforms 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
TS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.13%.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -12.28%.
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)-22.13%
EPS 3Y25.57%
EPS 5Y23.23%
EPS Q2Q%72.41%
Revenue 1Y (TTM)-12.28%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%-7.1%
3.2 Future
Based on estimates for the next years, TS will show a decrease in Earnings Per Share. The EPS will decrease by -1.54% on average per year.
Based on estimates for the next years, TS will show a small growth in Revenue. The Revenue will grow by 1.09% on average per year.
EPS Next Y10.57%
EPS Next 2Y2.96%
EPS Next 3Y3.84%
EPS Next 5Y-1.54%
Revenue Next Year-4.11%
Revenue Next 2Y-1.71%
Revenue Next 3Y-0.07%
Revenue Next 5Y1.09%
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
With a Price/Earnings ratio of 9.22, the valuation of TS can be described as very reasonable.
Based on the Price/Earnings ratio, TS is valued cheaper than 91.80% of the companies in the same industry.
TS is valuated cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.88 indicates a reasonable valuation of TS.
TS's Price/Forward Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 95.08% of the companies in the same industry.
TS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 8.88 |
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 67.21% 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 77.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 4.92 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)0.4
EPS Next 2Y2.96%
EPS Next 3Y3.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.76%, TS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.21, TS pays a better dividend. On top of this TS pays more dividend than 90.16% of the companies listed in the same industry.
TS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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 44.92% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.92%
EPS Next 2Y2.96%
EPS Next 3Y3.84%
34.67
-0.11 (-0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners13.42%
Inst Owner Change0.02%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap18.01B
Analysts74.44
Price Target42.58 (22.82%)
Short Float %3.15%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
Yearly Dividend0.67
Dividend Growth(5Y)10.42%
DP44.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.42%
Min EPS beat(2)-19.77%
Max EPS beat(2)-11.07%
EPS beat(4)2
Avg EPS beat(4)8.2%
Min EPS beat(4)-19.77%
Max EPS beat(4)45.42%
EPS beat(8)4
Avg EPS beat(8)8.64%
EPS beat(12)6
Avg EPS beat(12)7.55%
EPS beat(16)10
Avg EPS beat(16)11.78%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)2.14%
Revenue beat(4)3
Avg Revenue beat(4)2.48%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)5.06%
Revenue beat(8)6
Avg Revenue beat(8)2.63%
Revenue beat(12)10
Avg Revenue beat(12)2.76%
Revenue beat(16)14
Avg Revenue beat(16)2.71%
PT rev (1m)-0.47%
PT rev (3m)0.91%
EPS NQ rev (1m)-15.59%
EPS NQ rev (3m)-40.42%
EPS NY rev (1m)0.42%
EPS NY rev (3m)-6.04%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 8.88 | ||
| P/S | 1.53 | ||
| P/FCF | 9.67 | ||
| P/OCF | 7.1 | ||
| P/B | 1.09 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 4.92 |
EPS(TTM)3.76
EY10.85%
EPS(NY)3.9
Fwd EY11.26%
FCF(TTM)3.59
FCFY10.34%
OCF(TTM)4.89
OCFY14.09%
SpS22.66
BVpS31.92
TBVpS29.3
PEG (NY)0.87
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.81% | ||
| ROE | 12.08% | ||
| ROCE | 11.36% | ||
| ROIC | 9.47% | ||
| ROICexc | 11.44% | ||
| ROICexgc | 12.61% | ||
| OM | 17.12% | ||
| PM (TTM) | 17.02% | ||
| GM | 33.79% | ||
| FCFM | 15.83% |
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
ROICexcg growth 3Y37.2%
ROICexcg 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 | 0.25 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 109.79% | ||
| Cap/Sales | 5.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.51% | ||
| Profit Quality | 93.01% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 5.25 |
F-Score6
WACC7.57%
ROIC/WACC1.25
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)-22.13%
EPS 3Y25.57%
EPS 5Y23.23%
EPS Q2Q%72.41%
EPS Next Y10.57%
EPS Next 2Y2.96%
EPS Next 3Y3.84%
EPS Next 5Y-1.54%
Revenue 1Y (TTM)-12.28%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%-7.1%
Revenue Next Year-4.11%
Revenue Next 2Y-1.71%
Revenue Next 3Y-0.07%
Revenue Next 5Y1.09%
EBIT growth 1Y-35.93%
EBIT growth 3Y47.51%
EBIT growth 5Y24.84%
EBIT Next Year14.46%
EBIT Next 3Y4.78%
EBIT Next 5Y4.32%
FCF growth 1Y-25.79%
FCF growth 3YN/A
FCF growth 5Y12.92%
OCF growth 1Y-16.19%
OCF growth 3Y188.73%
OCF growth 5Y13.41%