TENARIS SA (TEN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TEN - LU2598331598 - Common Stock
18.975 EUR
+0.05 (+0.26%)
Taking everything into account, TEN scores 7 out of 10 in our fundamental rating. TEN was compared to 38 industry peers in the Energy Equipment & Services industry. TEN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TEN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- TEN had positive earnings in the past year.
- In the past year TEN had a positive cash flow from operations.
- Of the past 5 years TEN 4 years were profitable.
- TEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 9.77%, TEN is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- TEN has a better Return On Equity (11.74%) than 60.53% of its industry peers.
- TEN has a better Return On Invested Capital (10.23%) than 68.42% of its industry peers.
- TEN had an Average Return On Invested Capital over the past 3 years of 16.25%. This is significantly above the industry average of 10.43%.
- The 3 year average ROIC (16.25%) for TEN is well above the current ROIC(10.23%). The reason for the recent decline needs to be investigated.
| 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
- TEN has a Profit Margin of 16.91%. This is amongst the best in the industry. TEN outperforms 81.58% of its industry peers.
- In the last couple of years the Profit Margin of TEN has grown nicely.
- TEN has a Operating Margin of 18.86%. This is in the better half of the industry: TEN outperforms 71.05% of its industry peers.
- In the last couple of years the Operating Margin of TEN has grown nicely.
- TEN has a Gross Margin of 34.05%. This is in the better half of the industry: TEN outperforms 71.05% of its industry peers.
- TEN's Gross Margin has improved in the last couple of years.
| 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), TEN is creating value.
- Compared to 1 year ago, TEN has less shares outstanding
- The number of shares outstanding for TEN has been reduced compared to 5 years ago.
- The debt/assets ratio for TEN has been reduced compared to a year ago.
2.2 Solvency
- TEN has an Altman-Z score of 4.56. This indicates that TEN is financially healthy and has little risk of bankruptcy at the moment.
- TEN's Altman-Z score of 4.56 is amongst the best of the industry. TEN outperforms 94.74% of its industry peers.
- The Debt to FCF ratio of TEN is 0.29, which is an excellent value as it means it would take TEN, 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, TEN belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
- A Debt/Equity ratio of 0.01 indicates that TEN is not too dependend on debt financing.
- TEN has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. TEN outperforms 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 4.56 |
ROIC/WACC1.32
WACC7.75%
2.3 Liquidity
- TEN has a Current Ratio of 4.08. This indicates that TEN is financially healthy and has no problem in meeting its short term obligations.
- TEN's Current ratio of 4.08 is amongst the best of the industry. TEN outperforms 86.84% of its industry peers.
- TEN has a Quick Ratio of 2.55. This indicates that TEN is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of TEN (2.55) is better than 84.21% 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 TEN have decreased strongly by -17.98% in the last year.
- The Earnings Per Share has been growing by 23.23% on average over the past years. This is a very strong growth
- TEN shows a decrease in Revenue. In the last year, the revenue decreased by -9.64%.
- TEN 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 3Y24.77%
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
- The Earnings Per Share is expected to decrease by -0.48% on average over the next years.
- The Revenue is expected to grow by 1.51% on average over the next years.
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.
- The Revenue 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
- TEN is valuated reasonably with a Price/Earnings ratio of 11.86.
- Compared to the rest of the industry, the Price/Earnings ratio of TEN indicates a somewhat cheap valuation: TEN is cheaper than 68.42% of the companies listed in the same industry.
- TEN is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- TEN is valuated reasonably with a Price/Forward Earnings ratio of 11.88.
- TEN's Price/Forward Earnings is on the same level as the industry average.
- TEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
- 89.47% of the companies in the same industry are more expensive than TEN, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, TEN is valued a bit cheaper than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.07 | ||
| EV/EBITDA | 2.3 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TEN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)0.51
EPS Next 2Y2.2%
EPS Next 3Y3.58%
5. Dividend
5.1 Amount
- TEN has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.61, TEN pays a bit more dividend than its industry peers.
- TEN'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 TEN is nicely growing with an annual growth rate of 10.42%!
Dividend Growth(5Y)10.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- TEN pays out 44.97% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.97%
EPS Next 2Y2.2%
EPS Next 3Y3.58%
TENARIS SA / TEN.MI FAQ
What is the ChartMill fundamental rating of TENARIS SA (TEN.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to TEN.MI.
What is the valuation status of TENARIS SA (TEN.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to TENARIS SA (TEN.MI). This can be considered as Fairly Valued.
How profitable is TENARIS SA (TEN.MI) stock?
TENARIS SA (TEN.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TENARIS SA (TEN.MI) stock?
The Price/Earnings (PE) ratio for TENARIS SA (TEN.MI) is 11.86 and the Price/Book (PB) ratio is 0.68.
Can you provide the dividend sustainability for TEN stock?
The dividend rating of TENARIS SA (TEN.MI) is 6 / 10 and the dividend payout ratio is 44.97%.