TENARIS SA-ADR (TS) Stock Fundamental Analysis
NYSE:TS - New York Stock Exchange, Inc. - US88031M1099 - ADR - Currency: USD
We assign a fundamental rating of 7 out of 10 to TS. TS was compared to 63 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 cheap, but on the other hand it scores bad on growth. 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
TS has a better Return On Assets (8.76%) than 84.13% of its industry peers.
The Return On Equity of TS (10.52%) is better than 63.49% of its industry peers.
TS's Return On Invested Capital of 9.58% is fine compared to the rest of the industry. TS outperforms 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 8.50%.
The 3 year average ROIC (16.25%) for TS is well above the current ROIC(9.58%). The reason for the recent decline needs to be investigated.
| 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
With an excellent Profit Margin value of 15.05%, TS belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Profit Margin of TS has grown nicely.
TS's Operating Margin of 17.56% is fine compared to the rest of the industry. TS outperforms 79.37% of its industry peers.
TS's Operating Margin has improved in the last couple of years.
TS has a better Gross Margin (34.01%) than 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
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
TS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.85 indicates that TS is not in any danger for bankruptcy at the moment.
The Altman-Z score of TS (5.85) is better than 98.41% of its industry peers.
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.
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 Debt to Equity ratio of 0.01. This is amongst the best in the industry. TS outperforms 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 5.85 |
ROIC/WACC1.25
WACC7.69%
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 88.89% 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.
With an excellent Quick ratio value of 2.53, TS belongs to the best 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
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.
Looking at the last year, TS shows a very negative growth in Revenue. The Revenue has decreased by -15.28% in the last year.
TS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.42% yearly.
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.
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 11.08, 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 73.02% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. TS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.15, the valuation of TS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TS is valued cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, TS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TS indicates a somewhat cheap valuation: TS is cheaper than 60.32% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TS is valued a bit cheaper than 69.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.24 | ||
| EV/EBITDA | 5 |
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)0.58
PEG (5Y)0.48
EPS Next 2Y10.98%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.76%, TS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.73, TS pays a better dividend. On top of this TS pays more dividend than 87.30% of the companies listed in the same industry.
TS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
On average, the dividend of TS grows each year by 10.42%, which is quite nice.
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%
36.11
+0.68 (+1.92%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners11.99%
Inst Owner Change3.43%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap19.35B
Analysts72.94
Price Target41.12 (13.87%)
Short Float %4.48%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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)-9.98%
PT rev (3m)-0.82%
EPS NQ rev (1m)50%
EPS NQ rev (3m)114.53%
EPS NY rev (1m)0%
EPS NY rev (3m)13.86%
Revenue NQ rev (1m)1.96%
Revenue NQ rev (3m)2.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 8.15 | ||
| P/S | 1.61 | ||
| P/FCF | 9.24 | ||
| P/OCF | 6.91 | ||
| P/B | 1.13 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 5 |
EPS(TTM)3.26
EY9.03%
EPS(NY)4.43
Fwd EY12.27%
FCF(TTM)3.91
FCFY10.82%
OCF(TTM)5.22
OCFY14.47%
SpS22.4
BVpS32.02
TBVpS29.49
PEG (NY)0.58
PEG (5Y)0.48
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 | 5.85 |
F-ScoreN/A
WACC7.69%
ROIC/WACC1.25
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%