TENARIS SA-ADR (TS) Stock Fundamental Analysis
NYSE:TS - New York Stock Exchange, Inc. - US88031M1099 - ADR - Currency: USD
Overall TS gets a fundamental rating of 7 out of 10. We evaluated TS against 62 industry peers in the Energy Equipment & Services industry. TS gets an excellent profitability rating and is at the same time showing great financial health properties. TS is valued quite cheap, but it does not seem to be growing. Finally TS also has an excellent dividend rating. This makes TS very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TS was profitable.
In the past year TS had a positive cash flow from operations.
Of the past 5 years TS 4 years were profitable.
In the past 5 years TS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.76%, TS belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.52%, TS is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
The Return On Invested Capital of TS (9.58%) is better than 74.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TS is significantly above the industry average of 8.69%.
The 3 year average ROIC (16.25%) for TS is well above the current ROIC(9.58%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.76% | ||
| ROE | 10.52% | ||
| ROIC | 9.58% |
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
TS's Profit Margin of 15.05% is amongst the best of the industry. TS outperforms 88.71% of its industry peers.
TS's Profit Margin has improved in the last couple of years.
TS's Operating Margin of 17.56% is fine compared to the rest of the industry. TS outperforms 77.42% of its industry peers.
TS's Operating Margin has improved in the last couple of years.
TS has a Gross Margin of 34.01%. This is in the better half of the industry: TS outperforms 67.74% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.56% | ||
| PM (TTM) | 15.05% | ||
| GM | 34.01% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TS is creating value.
Compared to 1 year ago, TS has less shares outstanding
The number of shares outstanding for TS has been reduced compared to 5 years ago.
TS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.65 indicates that TS is not in any danger for bankruptcy at the moment.
The Altman-Z score of TS (5.65) is better than 98.39% of its industry peers.
The Debt to FCF ratio of TS is 0.24, which is an excellent value as it means it would take TS, only 0.24 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.24, TS belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.01, TS belongs to the best of the industry, outperforming 95.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 5.65 |
ROIC/WACC1.25
WACC7.69%
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 has a better Current ratio (4.08) than 90.32% of its industry peers.
TS has a Quick Ratio of 2.53. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.53, TS belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
TS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.56%.
TS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.23% yearly.
Looking at the last year, TS shows a very negative growth in Revenue. The Revenue has decreased by -15.28% in the last 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)-30.56%
EPS 3Y24.58%
EPS 5Y23.23%
EPS Q2Q%46.87%
Revenue 1Y (TTM)-15.28%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%-15.09%
3.2 Future
Based on estimates for the next years, TS will show a decrease in Earnings Per Share. The EPS will decrease by -2.58% on average per year.
TS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.48% yearly.
EPS Next Y18.95%
EPS Next 2Y10.98%
EPS Next 3Y7.04%
EPS Next 5Y-2.58%
Revenue Next Year-3.03%
Revenue Next 2Y-1.51%
Revenue Next 3Y-0.34%
Revenue Next 5Y-1.48%
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
TS is valuated cheaply with a Price/Earnings ratio of 7.83.
83.87% of the companies in the same industry are more expensive than TS, based on the Price/Earnings ratio.
TS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 7.42, which indicates a rather cheap valuation of TS.
87.10% of the companies in the same industry are more expensive than TS, based on the Price/Forward Earnings ratio.
TS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
TS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TS is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
TS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TS may justify a higher PE ratio.
PEG (NY)0.41
PEG (5Y)0.34
EPS Next 2Y10.98%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.84%, TS is a good candidate for dividend investing.
TS's Dividend Yield is rather good when compared to the industry average which is at 3.93. TS pays more dividend than 87.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
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
41.95% of the earnings are spent on dividend by TS. This is a bit on the high side, but may be sustainable.
DP41.95%
EPS Next 2Y10.98%
EPS Next 3Y7.04%
32.88
-0.43 (-1.29%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners11.99%
Inst Owner Change3.18%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap17.62B
Analysts72.94
Price Target45.68 (38.93%)
Short Float %3.99%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
Yearly Dividend0.67
Dividend Growth(5Y)10.42%
DP41.95%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.15%
Min EPS beat(2)20.87%
Max EPS beat(2)45.42%
EPS beat(4)3
Avg EPS beat(4)11.4%
Min EPS beat(4)-38.91%
Max EPS beat(4)45.42%
EPS beat(8)6
Avg EPS beat(8)17.21%
EPS beat(12)8
Avg EPS beat(12)13.43%
EPS beat(16)12
Avg EPS beat(16)22.83%
Revenue beat(2)1
Avg Revenue beat(2)1.35%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)3.88%
Revenue beat(4)3
Avg Revenue beat(4)2.28%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)5.06%
Revenue beat(8)6
Avg Revenue beat(8)2.99%
Revenue beat(12)10
Avg Revenue beat(12)2.78%
Revenue beat(16)14
Avg Revenue beat(16)3.28%
PT rev (1m)-6.55%
PT rev (3m)10.18%
EPS NQ rev (1m)-32.34%
EPS NQ rev (3m)41.39%
EPS NY rev (1m)-2.01%
EPS NY rev (3m)1.54%
Revenue NQ rev (1m)-1.5%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)-2.7%
Revenue NY rev (3m)-3.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.42 | ||
| P/S | 1.47 | ||
| P/FCF | 8.42 | ||
| P/OCF | 6.29 | ||
| P/B | 1.03 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 4.58 |
EPS(TTM)4.2
EY12.77%
EPS(NY)4.43
Fwd EY13.47%
FCF(TTM)3.91
FCFY11.88%
OCF(TTM)5.22
OCFY15.89%
SpS22.4
BVpS32.02
TBVpS29.49
PEG (NY)0.41
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.76% | ||
| ROE | 10.52% | ||
| ROCE | 11.5% | ||
| ROIC | 9.58% | ||
| ROICexc | 11.73% | ||
| ROICexgc | 12.9% | ||
| OM | 17.56% | ||
| PM (TTM) | 15.05% | ||
| GM | 34.01% | ||
| FCFM | 17.44% |
ROA(3y)14.36%
ROA(5y)9.22%
ROE(3y)17.97%
ROE(5y)11.49%
ROIC(3y)16.25%
ROIC(5y)N/A
ROICexc(3y)19.35%
ROICexc(5y)N/A
ROICexgc(3y)21.4%
ROICexgc(5y)N/A
ROCE(3y)19.51%
ROCE(5y)N/A
ROICexcg growth 3Y37.2%
ROICexcg growth 5Y17.07%
ROICexc growth 3Y38.27%
ROICexc growth 5Y18.31%
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%
F-ScoreN/A
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.24 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 116.94% | ||
| Cap/Sales | 5.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.24% | ||
| Profit Quality | 115.93% | ||
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 5.65 |
F-ScoreN/A
WACC7.69%
ROIC/WACC1.25
Cap/Depr(3y)96.54%
Cap/Depr(5y)71.87%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.14%
Profit Quality(3y)77.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.56%
EPS 3Y24.58%
EPS 5Y23.23%
EPS Q2Q%46.87%
EPS Next Y18.95%
EPS Next 2Y10.98%
EPS Next 3Y7.04%
EPS Next 5Y-2.58%
Revenue 1Y (TTM)-15.28%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%-15.09%
Revenue Next Year-3.03%
Revenue Next 2Y-1.51%
Revenue Next 3Y-0.34%
Revenue Next 5Y-1.48%
EBIT growth 1Y-43.66%
EBIT growth 3Y47.51%
EBIT growth 5Y24.84%
EBIT Next Year23.02%
EBIT Next 3Y7.35%
EBIT Next 5Y1.48%
FCF growth 1Y24.23%
FCF growth 3YN/A
FCF growth 5Y12.92%
OCF growth 1Y32.42%
OCF growth 3Y188.73%
OCF growth 5Y13.41%