TENARIS SA-ADR (TS) Stock Fundamental Analysis
NYSE:TS - New York Stock Exchange, Inc. - US88031M1099 - ADR - Currency: USD
We assign a fundamental rating of 7 out of 10 to TS. TS was compared to 59 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 is cheap, but on the other hand it scores bad on growth. With these ratings, TS could be worth investigating further for value 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.
The reported net income has been mixed in the past 5 years: TS reported negative net income in multiple years.
Of the past 5 years TS 4 years had a positive operating cash flow.
1.2 Ratios
TS has a better Return On Assets (12.53%) than 93.10% of its industry peers.
Looking at the Return On Equity, with a value of 15.40%, TS is in the better half of the industry, outperforming 70.69% of the companies in the same industry.
The Return On Invested Capital of TS (12.13%) is better than 86.21% 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 8.19%.
| 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
Looking at the Profit Margin, with a value of 20.23%, TS belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
TS's Profit Margin has improved in the last couple of years.
TS has a better Operating Margin (20.57%) than 84.48% of its industry peers.
In the last couple of years the Operating Margin of TS has grown nicely.
The Gross Margin of TS (36.35%) is better than 72.41% of its industry peers.
TS's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TS is creating value.
TS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TS has an Altman-Z score of 5.77. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
TS has a better Altman-Z score (5.77) than 93.10% of its industry peers.
TS has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
The Debt to FCF ratio of TS (0.26) is better than 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 Debt to Equity ratio of 0.01. This is amongst the best in the industry. TS outperforms 94.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 5.77 |
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.
The Current ratio of TS (3.65) is better than 87.93% of its industry peers.
TS has a Quick Ratio of 2.27. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
TS's Quick ratio of 2.27 is amongst the best of the industry. TS outperforms 81.03% of its industry peers.
| 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 -32.13% in the last year.
The Earnings Per Share has been growing by 29.11% on average over the past years. This is a very strong growth
EPS 1Y (TTM)-32.13%
EPS 3Y35.79%
EPS 5Y29.11%
EPS Q2Q%-2.08%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-16.68%
3.2 Future
TS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.81% yearly.
TS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.66% yearly.
EPS Next Y-18.39%
EPS Next 2Y-4.77%
EPS Next 3Y-11.71%
EPS Next 5Y-7.81%
Revenue Next Year-0.31%
Revenue Next 2Y0.23%
Revenue Next 3Y-2.45%
Revenue Next 5Y-2.66%
3.3 Evolution
The EPS 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
Based on the Price/Earnings ratio of 8.10, the valuation of TS can be described as reasonable.
TS's Price/Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 96.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of TS to the average of the S&P500 Index (29.63), we can say TS is valued rather cheaply.
A Price/Forward Earnings ratio of 9.94 indicates a reasonable valuation of TS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TS indicates a rather cheap valuation: TS is cheaper than 81.03% of the companies listed in the same industry.
TS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TS is valued a bit cheaper than 74.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TS is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.1 | ||
| EV/EBITDA | 4.58 |
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 -11.71% in the coming years.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-4.77%
EPS Next 3Y-11.71%
5. Dividend
5.1 Amount
TS has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, TS pays a better dividend. On top of this TS pays more dividend than 84.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, 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-4.77%
EPS Next 3Y-11.71%
37.76
-0.85 (-2.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners11.81%
Inst Owner Change-5.21%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap20.37B
Analysts73.75
Price Target41.46 (9.8%)
Short Float %2.73%
Short Ratio3.63
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)1.12%
PT rev (3m)5.07%
EPS NQ rev (1m)-5.13%
EPS NQ rev (3m)-24.92%
EPS NY rev (1m)3.26%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)-1.6%
Revenue NQ rev (3m)-8.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 9.94 | ||
| P/S | 1.56 | ||
| P/FCF | 8.1 | ||
| P/OCF | 6.35 | ||
| P/B | 1.18 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 4.58 |
EPS(TTM)4.66
EY12.34%
EPS(NY)3.8
Fwd EY10.07%
FCF(TTM)4.66
FCFY12.35%
OCF(TTM)5.95
OCFY15.76%
SpS24.27
BVpS31.88
TBVpS29.37
PEG (NY)N/A
PEG (5Y)0.28
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 | 5.77 |
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)-32.13%
EPS 3Y35.79%
EPS 5Y29.11%
EPS Q2Q%-2.08%
EPS Next Y-18.39%
EPS Next 2Y-4.77%
EPS Next 3Y-11.71%
EPS Next 5Y-7.81%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-16.68%
Revenue Next Year-0.31%
Revenue Next 2Y0.23%
Revenue Next 3Y-2.45%
Revenue Next 5Y-2.66%
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-8.5%
FCF growth 1Y632.46%
FCF growth 3Y41.74%
FCF growth 5Y70.59%
OCF growth 1Y365.65%
OCF growth 3Y42.45%
OCF growth 5Y48.39%