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 63 industry peers in the Energy Equipment & Services industry. Both the health and profitability get an excellent rating, making TS a very profitable company, without any liquidiy or solvency issues. TS has a bad growth rate and is valued cheaply. Finally TS also has an excellent dividend rating. With these ratings, TS could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
TS had positive earnings in the past year.
In the past year TS had a positive cash flow from operations.
TS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.76%, TS belongs to the best of the industry, outperforming 84.13% of the companies in the same industry.
TS has a Return On Equity of 10.52%. This is in the better half of the industry: TS outperforms 63.49% of its industry peers.
The Return On Invested Capital of TS (9.58%) is better than 74.60% of its industry peers.
TS had an Average Return On Invested Capital over the past 3 years of 16.25%. This is significantly above the industry average of 8.44%.
The last Return On Invested Capital (9.58%) for TS is well below the 3 year average (16.25%), which needs to be investigated, but indicates that TS had better years and this may not be a problem.
| 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 88.89% of its industry peers.
In the last couple of years the Profit Margin of TS has grown nicely.
TS has a Operating Margin of 17.56%. This is in the better half of the industry: TS outperforms 79.37% of its industry peers.
In the last couple of years the Operating Margin of TS has grown nicely.
TS has a Gross Margin of 34.01%. This is in the better half of the industry: TS outperforms 68.25% of its industry peers.
TS's Gross Margin has improved in the last couple of years.
| 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
TS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TS has been reduced compared to 1 year ago.
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
TS has an Altman-Z score of 6.13. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TS (6.13) is better than 96.83% of its industry peers.
TS has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.24, TS belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
TS has a better Debt to Equity ratio (0.01) than 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 6.13 |
ROIC/WACC1.27
WACC7.53%
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.
Looking at the Current ratio, with a value of 4.08, TS belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
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 88.89% 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 -46.18%.
Measured over the past years, TS shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.23% on average per year.
The Revenue for TS has decreased by -15.28% in the past year. This is quite bad
Measured over the past years, TS shows a quite strong growth in Revenue. The Revenue has been growing by 11.42% on average per year.
EPS 1Y (TTM)-46.18%
EPS 3Y24.58%
EPS 5Y23.23%
EPS Q2Q%-26.56%
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 -3.09% on average per year.
The Revenue is expected to decrease by -0.43% on average over the next years.
EPS Next Y18.95%
EPS Next 2Y10.98%
EPS Next 3Y7.04%
EPS Next 5Y-3.09%
Revenue Next Year-3.03%
Revenue Next 2Y-1.51%
Revenue Next 3Y-0.34%
Revenue Next 5Y-0.43%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.78, the valuation of TS can be described as reasonable.
73.02% of the companies in the same industry are more expensive than TS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. TS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.67 indicates a reasonable valuation of TS.
TS's Price/Forward Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 87.30% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TS to the average of the S&P500 Index (21.90), we can say TS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TS is on the same level as its industry peers.
TS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TS is cheaper than 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.83 | ||
| EV/EBITDA | 5.58 |
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)0.62
PEG (5Y)0.51
EPS Next 2Y10.98%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.56%, TS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.70, TS pays a better dividend. On top of this TS pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, TS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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
TS pays out 41.95% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.95%
EPS Next 2Y10.98%
EPS Next 3Y7.04%
38.39
-0.36 (-0.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners12.52%
Inst Owner Change3.43%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap20.58B
Analysts72.94
Price Target42.2 (9.92%)
Short Float %4.08%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend0.67
Dividend Growth(5Y)10.42%
DP41.95%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.83%
Min EPS beat(2)-19.77%
Max EPS beat(2)45.42%
EPS beat(4)2
Avg EPS beat(4)1.24%
Min EPS beat(4)-38.91%
Max EPS beat(4)45.42%
EPS beat(8)5
Avg EPS beat(8)12.13%
EPS beat(12)7
Avg EPS beat(12)10.04%
EPS beat(16)11
Avg EPS beat(16)20.29%
Revenue beat(2)1
Avg Revenue beat(2)1.37%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)3.88%
Revenue beat(4)3
Avg Revenue beat(4)2.29%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)5.06%
Revenue beat(8)6
Avg Revenue beat(8)2.99%
Revenue beat(12)10
Avg Revenue beat(12)2.79%
Revenue beat(16)14
Avg Revenue beat(16)3.28%
PT rev (1m)-7.62%
PT rev (3m)-1.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)102.98%
EPS NY rev (1m)0%
EPS NY rev (3m)13.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 8.67 | ||
| P/S | 1.71 | ||
| P/FCF | 9.83 | ||
| P/OCF | 7.35 | ||
| P/B | 1.2 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 5.58 |
EPS(TTM)3.26
EY8.49%
EPS(NY)4.43
Fwd EY11.54%
FCF(TTM)3.91
FCFY10.18%
OCF(TTM)5.22
OCFY13.61%
SpS22.4
BVpS32.02
TBVpS29.49
PEG (NY)0.62
PEG (5Y)0.51
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 | 6.13 |
F-ScoreN/A
WACC7.53%
ROIC/WACC1.27
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)-46.18%
EPS 3Y24.58%
EPS 5Y23.23%
EPS Q2Q%-26.56%
EPS Next Y18.95%
EPS Next 2Y10.98%
EPS Next 3Y7.04%
EPS Next 5Y-3.09%
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-0.43%
EBIT growth 1Y-43.66%
EBIT growth 3Y47.51%
EBIT growth 5Y24.84%
EBIT Next Year15.41%
EBIT Next 3Y5.01%
EBIT Next 5Y2.74%
FCF growth 1Y24.23%
FCF growth 3YN/A
FCF growth 5Y12.92%
OCF growth 1Y32.42%
OCF growth 3Y188.73%
OCF growth 5Y13.41%