TENARIS SA-ADR (NYSE:TS) – A Strong Dividend Stock with Solid Fundamentals

TENARIS SA-ADR (NYSE:TS) stands out as a compelling choice for dividend investors, according to our screening criteria. The company combines an attractive dividend yield with strong profitability and financial health, making it a well-rounded candidate for income-focused portfolios.

Dividend Strength

• High Yield: TS offers a dividend yield of 4.76%, well above the industry average of 3.73% and the S&P500 average of 2.39%.
• Reliable Growth: The company has increased its dividend at an annualized rate of 10.42% over the past five years, demonstrating a commitment to rewarding shareholders.
• Long Track Record: TS has paid dividends consistently for at least 10 years, indicating stability in its payout policy.
• Sustainable Payout: With a payout ratio of 41.95%, the dividend appears manageable relative to earnings, though investors should monitor future profitability trends.

Profitability & Financial Health

• Strong Margins: TS maintains a profit margin of 15.05%, outperforming 88.89% of its peers in the Energy Equipment & Services industry. Operating margins (17.56%) and gross margins (34.01%) also rank favorably.
• Financial Stability: The company boasts an Altman-Z score of 5.91, signaling low bankruptcy risk, and a minimal debt-to-equity ratio of 0.01, reflecting a conservative capital structure.
• Liquidity Strength: A current ratio of 4.08 and quick ratio of 2.53 indicate ample ability to meet short-term obligations.

Valuation Considerations

• Attractive P/E: TS trades at a P/E ratio of 11.05, below both the industry (25.02) and S&P500 (26.60) averages, suggesting reasonable valuation.
• Positive Cash Flow: The company generates strong free cash flow, supporting both dividend payments and reinvestment in operations.

For a deeper look, review the full fundamental analysis report.

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Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.