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. Both the health and profitability get an excellent rating, making TS a very profitable company, without any liquidiy or solvency issues. TS is valued quite cheap, but it does not seem to be growing. TS also has an excellent dividend rating. These ratings would make TS suitable 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.
TS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TS (8.76%) is better than 83.87% of its industry peers.
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.
TS's Return On Invested Capital of 9.58% is fine compared to the rest of the industry. TS outperforms 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 8.42%.
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
The Profit Margin of TS (15.05%) is better than 88.71% of its industry peers.
In the last couple of years the Profit Margin of TS has grown nicely.
Looking at the Operating Margin, with a value of 17.56%, TS is in the better half of the industry, outperforming 79.03% of the companies in the same industry.
TS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.01%, TS is in the better half of the industry, outperforming 69.35% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TS is creating value.
TS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TS has been reduced compared to 5 years ago.
Compared to 1 year ago, TS has an improved debt to assets ratio.
2.2 Solvency
TS has an Altman-Z score of 6.11. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.11, TS belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.
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.
TS has a better Debt to FCF ratio (0.24) than 90.32% of its industry peers.
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 95.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 6.11 |
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.
TS has a Current ratio of 4.08. This is amongst the best in the industry. TS outperforms 88.71% 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.
TS has a better Quick ratio (2.53) than 88.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.08 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
The earnings per share for TS have decreased strongly by -46.18% in the last year.
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 -15.28%.
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 3Y25.12%
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.
TS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.43% yearly.
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
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
Based on the Price/Earnings ratio of 11.58, the valuation of TS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TS indicates a somewhat cheap valuation: TS is cheaper than 74.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, TS is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.51, the valuation of TS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TS is valued cheaply inside the industry as 91.94% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.19. TS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 8.51 |
4.2 Price Multiples
TS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TS is valued a bit cheaper than the industry average as 66.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.65 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
The 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)0.61
PEG (5Y)0.5
EPS Next 2Y10.98%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
TS has a Yearly Dividend Yield of 4.34%, which is a nice return.
Compared to an average industry Dividend Yield of 3.52, TS pays a better dividend. On top of this TS pays more dividend than 85.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
The dividend of TS is nicely growing with an annual growth rate of 10.42%!
TS has been paying a dividend for at least 10 years, so it has 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%
38.2
-0.46 (-1.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners12.52%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap20.21B
Analysts72.94
Price Target42.2 (10.47%)
Short Float %4.08%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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)2.62%
PT rev (3m)-13.67%
EPS NQ rev (1m)-23.74%
EPS NQ rev (3m)-22.6%
EPS NY rev (1m)1.29%
EPS NY rev (3m)6.78%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 8.51 | ||
| P/S | 1.68 | ||
| P/FCF | 9.65 | ||
| P/OCF | 7.22 | ||
| P/B | 1.18 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 5.54 |
EPS(TTM)3.3
EY8.64%
EPS(NY)4.49
Fwd EY11.75%
FCF(TTM)3.96
FCFY10.36%
OCF(TTM)5.29
OCFY13.85%
SpS22.69
BVpS32.44
TBVpS29.87
PEG (NY)0.61
PEG (5Y)0.5
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 | 6.11 |
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 3Y25.12%
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%