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 Best Dividend Stocks screener. The company combines an attractive dividend yield with strong profitability and financial health, making it a well-rounded pick for income-focused portfolios.

Dividend Strength

• High Yield: TS offers a 4.56% dividend yield, well above the S&P 500 average of 2.42% and the industry average of 3.70%.
• Reliable Growth: The company has increased its dividend at an average annual rate of 10.42% over the past years.
• Track Record: TS has paid dividends consistently for at least 10 years, demonstrating reliability.
• Payout Ratio: At 41.95%, the payout ratio is slightly elevated but remains sustainable given the company’s profitability.

Profitability & Financial Health

• Strong Margins: TS boasts a 15.05% profit margin, outperforming 88.89% of its industry peers. Its operating margin (17.56%) is also robust.
• Solid Returns: The company maintains an 8.76% Return on Assets (ROA) and a 10.52% Return on Equity (ROE), indicating efficient use of capital.
• Financial Stability: With an Altman-Z score of 6.13 and minimal debt (Debt/Equity of 0.01), TS is in excellent financial shape. Liquidity is strong, with a Current Ratio of 4.08 and a Quick Ratio of 2.53.

Valuation

• Attractive P/E: TS trades at a P/E of 11.78, below both the industry average (26.78) and the S&P 500 (27.45).
• Forward P/E: At 8.67, the stock appears undervalued relative to future earnings expectations.

For a deeper dive into TS’s fundamentals, review the full fundamental report here.

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Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but investors should conduct their own analysis before making decisions.