TENARIS SA-ADR (TS) Stock Fundamental Analysis
NYSE:TS - New York Stock Exchange, Inc. - US88031M1099 - ADR - Currency: USD
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 is valued quite cheap, but it does not seem to be growing. 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
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.
Each year in the past 5 years TS had a positive operating cash flow.
1.2 Ratios
TS has a Return On Assets of 9.96%. This is amongst the best in the industry. TS outperforms 85.48% of its industry peers.
The Return On Equity of TS (12.27%) is better than 64.52% of its industry peers.
TS's Return On Invested Capital of 11.07% is amongst the best of the industry. TS outperforms 80.65% 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 8.28%.
The 3 year average ROIC (16.25%) for TS is well above the current ROIC(11.07%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.96% | ||
| ROE | 12.27% | ||
| ROIC | 11.07% |
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
The Profit Margin of TS (16.26%) is better than 91.94% of its industry peers.
In the last couple of years the Profit Margin of TS has grown nicely.
The Operating Margin of TS (18.90%) is better than 82.26% of its industry peers.
TS's Operating Margin has improved in the last couple of years.
TS's Gross Margin of 35.04% is fine compared to the rest of the industry. TS outperforms 70.97% of its industry peers.
TS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.9% | ||
| PM (TTM) | 16.26% | ||
| GM | 35.04% |
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), TS 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 5.38. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
TS has a Altman-Z score of 5.38. This is amongst the best in the industry. TS outperforms 96.77% of its industry peers.
TS has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
TS's Debt to FCF ratio of 0.27 is amongst the best of the industry. TS outperforms 93.55% 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 95.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 5.38 |
ROIC/WACC1.44
WACC7.69%
2.3 Liquidity
A Current Ratio of 3.50 indicates that TS has no problem at all paying its short term obligations.
TS has a better Current ratio (3.50) than 87.10% of its industry peers.
TS has a Quick Ratio of 2.10. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
TS's Quick ratio of 2.10 is fine compared to the rest of the industry. TS outperforms 79.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.5 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
TS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.25%.
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.
TS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.77%.
The Revenue has been growing by 11.42% on average over the past years. This is quite good.
EPS 1Y (TTM)-46.25%
EPS 3Y25.43%
EPS 5Y23.23%
EPS Q2Q%-51.04%
Revenue 1Y (TTM)-15.77%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%-16.68%
3.2 Future
The Earnings Per Share is expected to decrease by -2.58% on average over the next years.
Based on estimates for the next years, TS will show a decrease in Revenue. The Revenue will decrease by -1.48% on average per year.
EPS Next Y18.95%
EPS Next 2Y10.98%
EPS Next 3Y7.04%
EPS Next 5Y-2.58%
Revenue Next Year-1.34%
Revenue Next 2Y0.18%
Revenue Next 3Y0.52%
Revenue Next 5Y-1.48%
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.
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
With a Price/Earnings ratio of 9.20, the valuation of TS can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TS indicates a somewhat cheap valuation: TS is cheaper than 77.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. TS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.73, the valuation of TS can be described as very cheap.
TS's Price/Forward Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 83.87% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. TS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
62.90% of the companies in the same industry are more expensive than TS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TS is valued a bit cheaper than 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.37 | ||
| EV/EBITDA | 4.41 |
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.
TS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.49
PEG (5Y)0.4
EPS Next 2Y10.98%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.01%, TS is a good candidate for dividend investing.
TS's Dividend Yield is rather good when compared to the industry average which is at 3.32. TS pays more dividend than 88.71% of the companies in the same industry.
TS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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
37.21% of the earnings are spent on dividend by TS. This is a low number and sustainable payout ratio.
DP37.21%
EPS Next 2Y10.98%
EPS Next 3Y7.04%
33.75
+0.07 (+0.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners11.99%
Inst Owner Change0.11%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap18.09B
Analysts72.5
Price Target50.66 (50.1%)
Short Float %2.79%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend0.67
Dividend Growth(5Y)10.42%
DP37.21%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.81%
Min EPS beat(2)18.2%
Max EPS beat(2)45.42%
EPS beat(4)3
Avg EPS beat(4)11.35%
Min EPS beat(4)-38.91%
Max EPS beat(4)45.42%
EPS beat(8)6
Avg EPS beat(8)16.08%
EPS beat(12)8
Avg EPS beat(12)14.11%
EPS beat(16)12
Avg EPS beat(16)43.12%
Revenue beat(2)2
Avg Revenue beat(2)4.47%
Min Revenue beat(2)3.88%
Max Revenue beat(2)5.06%
Revenue beat(4)3
Avg Revenue beat(4)2.48%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)5.06%
Revenue beat(8)7
Avg Revenue beat(8)3.64%
Revenue beat(12)11
Avg Revenue beat(12)2.89%
Revenue beat(16)15
Avg Revenue beat(16)3.38%
PT rev (1m)17.88%
PT rev (3m)23.57%
EPS NQ rev (1m)102.63%
EPS NQ rev (3m)97.51%
EPS NY rev (1m)7.58%
EPS NY rev (3m)8.95%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)-4.24%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 7.73 | ||
| P/S | 1.44 | ||
| P/FCF | 8.37 | ||
| P/OCF | 6.31 | ||
| P/B | 1.09 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 4.41 |
EPS(TTM)3.67
EY10.87%
EPS(NY)4.37
Fwd EY12.94%
FCF(TTM)4.03
FCFY11.95%
OCF(TTM)5.35
OCFY15.84%
SpS23.37
BVpS30.96
TBVpS28.42
PEG (NY)0.49
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.96% | ||
| ROE | 12.27% | ||
| ROCE | 13.29% | ||
| ROIC | 11.07% | ||
| ROICexc | 13.35% | ||
| ROICexgc | 14.7% | ||
| OM | 18.9% | ||
| PM (TTM) | 16.26% | ||
| GM | 35.04% | ||
| FCFM | 17.26% |
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-Score5
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.27 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 111.3% | ||
| Cap/Sales | 5.62% | ||
| Interest Coverage | 38.96 | ||
| Cash Conversion | 95.53% | ||
| Profit Quality | 106.16% | ||
| Current Ratio | 3.5 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 5.38 |
F-Score5
WACC7.69%
ROIC/WACC1.44
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)-46.25%
EPS 3Y25.43%
EPS 5Y23.23%
EPS Q2Q%-51.04%
EPS Next Y18.95%
EPS Next 2Y10.98%
EPS Next 3Y7.04%
EPS Next 5Y-2.58%
Revenue 1Y (TTM)-15.77%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%-16.68%
Revenue Next Year-1.34%
Revenue Next 2Y0.18%
Revenue Next 3Y0.52%
Revenue Next 5Y-1.48%
EBIT growth 1Y-44.72%
EBIT growth 3Y47.51%
EBIT growth 5Y24.84%
EBIT Next Year23.02%
EBIT Next 3Y7.35%
EBIT Next 5Y1.48%
FCF growth 1Y-42.74%
FCF growth 3YN/A
FCF growth 5Y12.92%
OCF growth 1Y-34.79%
OCF growth 3Y188.73%
OCF growth 5Y13.41%