TENARIS SA-ADR (TS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TS - US88031M1099 - ADR
44.43 USD
+0.07 (+0.16%)
44.43 USD
0 (0%)
TS gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 62 industry peers in the Energy Equipment & Services industry. TS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TS has a bad growth rate and is valued cheaply. These ratings could make TS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- TS had positive earnings in the past year.
- TS had a positive operating cash flow in the past year.
- 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
- TS has a Return On Assets of 9.77%. This is amongst the best in the industry. TS outperforms 95.16% of its industry peers.
- The Return On Equity of TS (11.74%) is better than 72.58% of its industry peers.
- TS has a better Return On Invested Capital (10.23%) than 80.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TS is above the industry average of 12.77%.
- The last Return On Invested Capital (10.23%) 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 | 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
- TS's Profit Margin of 16.91% is amongst the best of the industry. TS outperforms 95.16% of its industry peers.
- TS's Profit Margin has improved in the last couple of years.
- TS has a better Operating Margin (18.86%) than 82.26% of its industry peers.
- TS's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 34.05%, TS is doing good in the industry, outperforming 75.81% of the companies in the same industry.
- In the last couple of years the Gross Margin of TS has grown nicely.
| 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
- 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
- TS has an Altman-Z score of 6.47. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
- TS has a better Altman-Z score (6.47) than 96.77% of its industry peers.
- The Debt to FCF ratio of TS is 0.29, which is an excellent value as it means it would take TS, only 0.29 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of TS (0.29) is better than 91.94% of its industry peers.
- TS has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.01, TS belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 6.47 |
ROIC/WACC1.32
WACC7.74%
2.3 Liquidity
- A Current Ratio of 4.08 indicates that TS has no problem at all paying its short term obligations.
- TS has a Current ratio of 4.08. This is amongst the best in the industry. TS outperforms 91.94% of its industry peers.
- A Quick Ratio of 2.55 indicates that TS has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.55, TS belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
- The earnings per share for TS 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
- TS shows a decrease in Revenue. In the last year, the revenue decreased by -9.64%.
- The Revenue has been growing by 11.42% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.98%
EPS 3Y25.95%
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
- TS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.48% yearly.
- TS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.51% yearly.
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
- 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
- With a Price/Earnings ratio of 11.45, the valuation of TS can be described as very reasonable.
- Based on the Price/Earnings ratio, TS is valued cheaper than 90.32% of the companies in the same industry.
- TS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 11.45, which indicates a very decent valuation of TS.
- Based on the Price/Forward Earnings ratio, TS is valued cheaper than 95.16% of the companies in the same industry.
- TS is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
- 70.97% of the companies in the same industry are more expensive than TS, based on the Enterprise Value to EBITDA ratio.
- TS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TS is cheaper than 75.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.74 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
- TS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of TS may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)0.49
EPS Next 2Y2.2%
EPS Next 3Y3.58%
5. Dividend
5.1 Amount
- TS has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
- TS's Dividend Yield is rather good when compared to the industry average which is at 1.17. TS pays more dividend than 91.94% of the companies in the same industry.
- TS'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 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 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-ADR / TS FAQ
Can you provide the ChartMill fundamental rating for TENARIS SA-ADR?
ChartMill assigns a fundamental rating of 8 / 10 to TS.
What is the valuation status for TS stock?
ChartMill assigns a valuation rating of 7 / 10 to TENARIS SA-ADR (TS). This can be considered as Undervalued.
Can you provide the profitability details for TENARIS SA-ADR?
TENARIS SA-ADR (TS) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for TS stock?
The Price/Earnings (PE) ratio for TENARIS SA-ADR (TS) is 11.45 and the Price/Book (PB) ratio is 1.32.
How sustainable is the dividend of TENARIS SA-ADR (TS) stock?
The dividend rating of TENARIS SA-ADR (TS) is 6 / 10 and the dividend payout ratio is 44.97%.