TENARIS SA-ADR (TS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TS - US88031M1099 - ADR
44.53 USD
+0.17 (+0.38%)
TS gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 62 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. 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.
- Of the past 5 years TS 4 years were profitable.
- Each year in the past 5 years TS had a positive operating cash flow.
1.2 Ratios
- TS has a Return On Assets of 9.77%. This is amongst the best in the industry. TS outperforms 95.16% of its industry peers.
- TS has a Return On Equity of 11.74%. This is in the better half of the industry: TS outperforms 72.58% of its industry peers.
- The Return On Invested Capital of TS (10.23%) is better than 80.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TS is above the industry average of 12.77%.
- The last Return On Invested Capital (10.23%) 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 | 9.77% | ||
| 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
- Looking at the Profit Margin, with a value of 16.91%, TS belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
- In the last couple of years the Profit Margin of TS has grown nicely.
- Looking at the Operating Margin, with a value of 18.86%, TS belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
- 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 75.81% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TS is creating value.
- TS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for TS has been reduced compared to 5 years ago.
- The debt/assets ratio for TS has been reduced compared to a year ago.
2.2 Solvency
- TS has an Altman-Z score of 6.47. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.47, TS belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
- The Debt to FCF ratio of TS is 0.29, which is an excellent value as it means it would take TS, only 0.29 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.29, TS belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
- TS has a better Debt to Equity ratio (0.01) than 91.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.47 |
ROIC/WACC1.32
WACC7.74%
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 91.94% of its industry peers.
- A Quick Ratio of 2.55 indicates that TS has no problem at all paying its short term obligations.
- TS has a Quick ratio of 2.55. This is amongst the best in the industry. TS outperforms 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
- The earnings per share for TS have decreased strongly by -17.98% in the last year.
- 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.
- TS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.42% yearly.
EPS 1Y (TTM)-17.98%
EPS 3Y25.95%
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
- TS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.48% yearly.
- Based on estimates for the next years, TS will show a small growth in Revenue. The Revenue will grow by 1.51% on average per year.
EPS Next Y7.74%
EPS Next 2Y2.2%
EPS Next 3Y3.58%
EPS Next 5Y-0.48%
Revenue Next Year-4.18%
Revenue Next 2Y-2.02%
Revenue Next 3Y-0.36%
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.
- 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
- TS is valuated reasonably with a Price/Earnings ratio of 11.48.
- 90.32% 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 27.30, TS is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.47, the valuation of TS can be described as reasonable.
- TS's Price/Forward Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 95.16% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TS to the average of the S&P500 Index (24.32), we can say TS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 11.47 |
4.2 Price Multiples
- 70.97% 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 ratio is a bit cheaper when compared to the industry. TS is cheaper than 75.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
- TS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of TS may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)0.49
EPS Next 2Y2.2%
EPS Next 3Y3.58%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.95%, TS has a reasonable but not impressive dividend return.
- TS's Dividend Yield is rather good when compared to the industry average which is at 1.17. TS pays more dividend than 91.94% of the companies in the same industry.
- TS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
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 2Y2.2%
EPS Next 3Y3.58%
TENARIS SA-ADR / TS FAQ
Can you provide the ChartMill fundamental rating for TENARIS SA-ADR?
ChartMill assigns a fundamental rating of 8 / 10 to TS.
What is the valuation status for TS stock?
ChartMill assigns a valuation rating of 7 / 10 to TENARIS SA-ADR (TS). This can be considered as Undervalued.
Can you provide the profitability details for TENARIS SA-ADR?
TENARIS SA-ADR (TS) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for TS stock?
The Price/Earnings (PE) ratio for TENARIS SA-ADR (TS) is 11.48 and the Price/Book (PB) ratio is 1.32.
How sustainable is the dividend of TENARIS SA-ADR (TS) stock?
The dividend rating of TENARIS SA-ADR (TS) is 6 / 10 and the dividend payout ratio is 44.97%.