Balancing Dividends and Fundamentals: The Case of TENARIS SA-ADR (NYSE:TS).

Last update: Mar 21, 2025

Our stock screener has spotted TENARIS SA-ADR (NYSE:TS) as a good dividend stock with solid fundamentals. TS shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Examination for TS

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. TS earns a 7 out of 10:

Compared to an average industry Dividend Yield of 3.99, TS pays a better dividend. On top of this TS pays more dividend than 84.75% 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 2.39.
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 pays out 37.21% of its income as dividend. This is a sustainable payout ratio.

A Closer Look at Health for TS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. TS has earned a 10 out of 10:

TS has an Altman-Z score of 5.89. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TS (5.89) is better than 100.00% of its industry peers.
The Debt to FCF ratio of TS is 0.27, which is an excellent value as it means it would take TS, only 0.27 years of fcf income to pay off all of its debts.
TS has a Debt to FCF ratio of 0.27. This is amongst the best in the industry. TS outperforms 94.92% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
TS has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. TS outperforms 94.92% of its industry peers.
A Current Ratio of 3.50 indicates that TS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.50, TS belongs to the best of the industry, outperforming 86.44% of the companies in the same industry.
A Quick Ratio of 2.10 indicates that TS has no problem at all paying its short term obligations.
TS has a Quick ratio of 2.10. This is in the better half of the industry: TS outperforms 77.97% of its industry peers.

Profitability Examination for TS

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. TS was assigned a score of 9 for profitability:

Looking at the Return On Assets, with a value of 9.96%, TS belongs to the top of the industry, outperforming 86.44% of the companies in the same industry.
TS's Return On Equity of 12.27% is fine compared to the rest of the industry. TS outperforms 64.41% of its industry peers.
With an excellent Return On Invested Capital value of 11.07%, TS belongs to the best of the industry, outperforming 81.36% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TS is significantly above the industry average of 7.72%.
The 3 year average ROIC (16.25%) for TS is well above the current ROIC(11.07%). The reason for the recent decline needs to be investigated.
Looking at the Profit Margin, with a value of 16.26%, TS belongs to the top of the industry, outperforming 89.83% of the companies in the same industry.
TS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.90%, TS belongs to the top of the industry, outperforming 83.05% of the companies in the same industry.
In the last couple of years the Operating Margin of TS has grown nicely.
The Gross Margin of TS (35.04%) is better than 69.49% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of TS for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.