TENARIS SA-ADR (TS) Stock Fundamental Analysis
NYSE:TS - US88031M1099 - ADR
36.13 USD
-0.39 (-1.07%)
36.13 USD
0 (0%)
Taking everything into account, TS scores 7 out of 10 in our fundamental rating. TS was compared to 61 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. Finally 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 Return On Assets of 9.81%. This is amongst the best in the industry. TS outperforms 90.16% of its industry peers.
TS has a Return On Equity of 12.08%. This is in the better half of the industry: TS outperforms 72.13% of its industry peers.
TS has a better Return On Invested Capital (9.47%) than 72.13% 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 8.01%.
The 3 year average ROIC (16.25%) for TS is well above the current ROIC(9.47%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 17.02%, TS belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
In the last couple of years the Profit Margin of TS has grown nicely.
TS has a better Operating Margin (17.12%) than 77.05% of its industry peers.
In the last couple of years the Operating Margin of TS has grown nicely.
TS's Gross Margin of 33.79% is fine compared to the rest of the industry. TS outperforms 70.49% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.
| 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.
Compared to 1 year ago, TS has less shares outstanding
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 5.39. This indicates that TS is financially healthy and has little risk of bankruptcy at the moment.
TS's Altman-Z score of 5.39 is amongst the best of the industry. TS outperforms 98.36% of its industry peers.
The Debt to FCF ratio of TS is 0.25, which is an excellent value as it means it would take TS, only 0.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.25, TS belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that TS is not too dependend on debt financing.
The Debt to Equity ratio of TS (0.01) is better than 93.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.25 | ||
| Altman-Z | 5.39 |
ROIC/WACC1.26
WACC7.52%
2.3 Liquidity
A Current Ratio of 3.41 indicates that TS has no problem at all paying 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 an excellent Quick ratio value of 2.11, TS belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
The earnings per share for TS have decreased strongly by -22.13% 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
The Revenue for TS has decreased by -12.28% in the past year. This is quite bad
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)-22.13%
EPS 3Y25.31%
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
TS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.54% yearly.
TS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.14% yearly.
EPS Next Y10.73%
EPS Next 2Y2.94%
EPS Next 3Y3.4%
EPS Next 5Y-3.54%
Revenue Next Year-4.25%
Revenue Next 2Y-2.29%
Revenue Next 3Y-0.58%
Revenue Next 5Y0.14%
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
A Price/Earnings ratio of 9.66 indicates a reasonable valuation of TS.
88.52% of the companies in the same industry are more expensive than TS, based on the Price/Earnings ratio.
TS is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.32, the valuation of TS can be described as reasonable.
TS's Price/Forward Earnings ratio is rather cheap when compared to the industry. TS is cheaper than 95.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, TS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 9.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TS is valued a bit cheaper than 62.30% of the companies in the same industry.
72.13% of the companies in the same industry are more expensive than TS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 5.26 |
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.
The excellent profitability rating of TS may justify a higher PE ratio.
PEG (NY)0.9
PEG (5Y)0.42
EPS Next 2Y2.94%
EPS Next 3Y3.4%
5. Dividend
5.1 Amount
TS has a Yearly Dividend Yield of 4.63%, which is a nice return.
TS's Dividend Yield is rather good when compared to the industry average which is at 3.44. TS pays more dividend than 88.52% of the companies in the same industry.
TS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
5.2 History
On average, the dividend of TS grows each year by 10.42%, which is quite nice.
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 2Y2.94%
EPS Next 3Y3.4%
36.13
-0.39 (-1.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners12.52%
Inst Owner Change-11.57%
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap18.89B
Analysts74.44
Price Target42.46 (17.52%)
Short Float %2.57%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
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)1.79%
PT rev (3m)-7.05%
EPS NQ rev (1m)-32.24%
EPS NQ rev (3m)56.87%
EPS NY rev (1m)-6.8%
EPS NY rev (3m)-5.28%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 9.32 | ||
| P/S | 1.6 | ||
| P/FCF | 10.14 | ||
| P/OCF | 7.44 | ||
| P/B | 1.14 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 5.26 |
EPS(TTM)3.74
EY10.35%
EPS(NY)3.88
Fwd EY10.73%
FCF(TTM)3.56
FCFY9.86%
OCF(TTM)4.86
OCFY13.44%
SpS22.51
BVpS31.72
TBVpS29.12
PEG (NY)0.9
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 | 5.39 |
F-Score6
WACC7.52%
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 3Y25.31%
EPS 5Y23.23%
EPS Q2Q%72.41%
EPS Next Y10.73%
EPS Next 2Y2.94%
EPS Next 3Y3.4%
EPS Next 5Y-3.54%
Revenue 1Y (TTM)-12.28%
Revenue growth 3Y24.3%
Revenue growth 5Y11.42%
Sales Q2Q%-7.1%
Revenue Next Year-4.25%
Revenue Next 2Y-2.29%
Revenue Next 3Y-0.58%
Revenue Next 5Y0.14%
EBIT growth 1Y-35.93%
EBIT growth 3Y47.51%
EBIT growth 5Y24.84%
EBIT Next Year15.41%
EBIT Next 3Y5.01%
EBIT Next 5Y2.92%
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%