TENARIS SA-ADR (TS) Stock Fundamental Analysis
USA - NYSE:TS - US88031M1099 - ADR
36.38 USD
+0.41 (+1.14%)
36.38 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to TS. TS was compared to 61 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. 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.
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
Looking at the Return On Assets, with a value of 9.81%, TS belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.08%, TS is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
TS has a better Return On Invested Capital (9.47%) than 73.77% 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 8.04%.
The last Return On Invested Capital (9.47%) 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 | 9.81% | ||
| ROE | 12.08% | ||
| ROIC | 9.47% |
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 has a Profit Margin of 17.02%. This is amongst the best in the industry. TS outperforms 95.08% of its industry peers.
TS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.12%, TS is doing good in the industry, outperforming 77.05% of the companies in the same industry.
In the last couple of years the Operating Margin of TS has grown nicely.
The Gross Margin of TS (33.79%) is better than 70.49% of its industry peers.
TS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.12% | ||
| PM (TTM) | 17.02% | ||
| GM | 33.79% |
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.
Compared to 5 years ago, TS has less shares outstanding
The debt/assets ratio for TS has been reduced compared to a year ago.
2.2 Solvency
TS has an Altman-Z score of 5.40. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TS (5.40) is better than 98.36% of its industry peers.
TS has a debt to FCF ratio of 0.25. This is a very positive value and a sign of high solvency as it would only need 0.25 years to pay back of all of its debts.
TS has a Debt to FCF ratio of 0.25. This is amongst the best in the industry. TS outperforms 91.80% 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.
TS has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. TS outperforms 93.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 5.4 |
ROIC/WACC1.26
WACC7.54%
2.3 Liquidity
TS has a Current Ratio of 3.41. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.41, TS belongs to the best of the industry, outperforming 86.89% of the companies in the same industry.
TS has a Quick Ratio of 2.11. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.11, TS is doing good in the industry, outperforming 78.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
TS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.13%.
The Earnings Per Share has been growing by 23.23% on average over the past years. This is a very strong growth
The Revenue for TS has decreased by -12.28% 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)-22.13%
EPS 3Y25.54%
EPS 5Y23.23%
EPS Q2Q%72.41%
Revenue 1Y (TTM)-12.28%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%-7.1%
3.2 Future
Based on estimates for the next years, TS will show a decrease in Earnings Per Share. The EPS will decrease by -1.54% on average per year.
The Revenue is expected to grow by 1.09% on average over the next years.
EPS Next Y10.57%
EPS Next 2Y2.96%
EPS Next 3Y3.84%
EPS Next 5Y-1.54%
Revenue Next Year-4.11%
Revenue Next 2Y-1.71%
Revenue Next 3Y-0.07%
Revenue Next 5Y1.09%
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
TS is valuated reasonably with a Price/Earnings ratio of 9.68.
Compared to the rest of the industry, the Price/Earnings ratio of TS indicates a rather cheap valuation: TS is cheaper than 90.16% of the companies listed in the same industry.
TS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
TS is valuated reasonably with a Price/Forward Earnings ratio of 9.32.
TS's Price/Forward Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 93.44% of the companies in the same industry.
TS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
TS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TS is cheaper than 63.93% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TS indicates a somewhat cheap valuation: TS is cheaper than 70.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| EV/EBITDA | 5.26 |
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)0.92
PEG (5Y)0.42
EPS Next 2Y2.96%
EPS Next 3Y3.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.57%, TS is a good candidate for dividend investing.
TS's Dividend Yield is rather good when compared to the industry average which is at 3.26. TS pays more dividend than 90.16% of the companies in the same industry.
TS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
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
44.92% of the earnings are spent on dividend by TS. This is a bit on the high side, but may be sustainable.
DP44.92%
EPS Next 2Y2.96%
EPS Next 3Y3.84%
36.38
+0.41 (+1.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners13.42%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap18.91B
Analysts74.44
Price Target42.58 (17.04%)
Short Float %3.15%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.57% |
Yearly Dividend0.67
Dividend Growth(5Y)10.42%
DP44.92%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.42%
Min EPS beat(2)-19.77%
Max EPS beat(2)-11.07%
EPS beat(4)2
Avg EPS beat(4)8.2%
Min EPS beat(4)-19.77%
Max EPS beat(4)45.42%
EPS beat(8)4
Avg EPS beat(8)8.64%
EPS beat(12)6
Avg EPS beat(12)7.55%
EPS beat(16)10
Avg EPS beat(16)11.78%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)2.14%
Revenue beat(4)3
Avg Revenue beat(4)2.48%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)5.06%
Revenue beat(8)6
Avg Revenue beat(8)2.63%
Revenue beat(12)10
Avg Revenue beat(12)2.76%
Revenue beat(16)14
Avg Revenue beat(16)2.71%
PT rev (1m)0.29%
PT rev (3m)0.91%
EPS NQ rev (1m)3.98%
EPS NQ rev (3m)63.44%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-4.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 9.32 | ||
| P/S | 1.61 | ||
| P/FCF | 10.15 | ||
| P/OCF | 7.45 | ||
| P/B | 1.14 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 5.26 |
EPS(TTM)3.76
EY10.34%
EPS(NY)3.9
Fwd EY10.72%
FCF(TTM)3.58
FCFY9.85%
OCF(TTM)4.88
OCFY13.42%
SpS22.64
BVpS31.9
TBVpS29.28
PEG (NY)0.92
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.81% | ||
| ROE | 12.08% | ||
| ROCE | 11.36% | ||
| ROIC | 9.47% | ||
| ROICexc | 11.44% | ||
| ROICexgc | 12.61% | ||
| OM | 17.12% | ||
| PM (TTM) | 17.02% | ||
| GM | 33.79% | ||
| FCFM | 15.83% |
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-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.25 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 109.79% | ||
| Cap/Sales | 5.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.51% | ||
| Profit Quality | 93.01% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 5.4 |
F-Score6
WACC7.54%
ROIC/WACC1.26
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)-22.13%
EPS 3Y25.54%
EPS 5Y23.23%
EPS Q2Q%72.41%
EPS Next Y10.57%
EPS Next 2Y2.96%
EPS Next 3Y3.84%
EPS Next 5Y-1.54%
Revenue 1Y (TTM)-12.28%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%-7.1%
Revenue Next Year-4.11%
Revenue Next 2Y-1.71%
Revenue Next 3Y-0.07%
Revenue Next 5Y1.09%
EBIT growth 1Y-35.93%
EBIT growth 3Y47.51%
EBIT growth 5Y24.84%
EBIT Next Year14.46%
EBIT Next 3Y4.78%
EBIT Next 5Y4.32%
FCF growth 1Y-25.79%
FCF growth 3YN/A
FCF growth 5Y12.92%
OCF growth 1Y-16.19%
OCF growth 3Y188.73%
OCF growth 5Y13.41%