TENARIS SA-ADR (TS)

US88031M1099 - ADR

33.6  +0.15 (+0.45%)

After market: 34.03 +0.43 (+1.28%)

Fundamental Rating

8

Taking everything into account, TS scores 8 out of 10 in our fundamental rating. TS was compared to 65 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, while showing a decent growth score. This is a good combination! These ratings could make TS a good candidate for value investing.



9

1. Profitability

1.1 Basic Checks

TS had positive earnings in the past year.
TS had a positive operating cash flow in the past year.
Of the past 5 years TS 4 years were profitable.
In the past 5 years TS always reported a positive cash flow from operatings.

1.2 Ratios

TS has a Return On Assets of 18.58%. This is amongst the best in the industry. TS outperforms 98.46% of its industry peers.
The Return On Equity of TS (23.26%) is better than 89.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.52%, TS belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
TS had an Average Return On Invested Capital over the past 3 years of 13.95%. This is significantly above the industry average of 8.02%.
The 3 year average ROIC (13.95%) for TS is below the current ROIC(19.52%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 18.58%
ROE 23.26%
ROIC 19.52%
ROA(3y)13.58%
ROA(5y)8.23%
ROE(3y)16.94%
ROE(5y)10.28%
ROIC(3y)13.95%
ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 26.35%, TS belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
In the last couple of years the Profit Margin of TS has grown nicely.
TS has a Operating Margin of 28.80%. This is amongst the best in the industry. TS outperforms 95.38% of its industry peers.
In the last couple of years the Operating Margin of TS has grown nicely.
The Gross Margin of TS (41.70%) is better than 86.15% of its industry peers.
In the last couple of years the Gross Margin of TS has grown nicely.
Industry RankSector Rank
OM 28.8%
PM (TTM) 26.35%
GM 41.7%
OM growth 3YN/A
OM growth 5Y20.38%
PM growth 3YN/A
PM growth 5Y18.16%
GM growth 3Y26.53%
GM growth 5Y6.06%

10

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.
TS has less shares outstanding than it did 1 year ago.
TS has less shares outstanding than it did 5 years ago.
TS has a better debt/assets ratio than last year.

2.2 Solvency

TS has an Altman-Z score of 5.60. 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 5.60, TS belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
TS has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
TS's Debt to FCF ratio of 0.19 is amongst the best of the industry. TS outperforms 95.38% 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 90.77% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.19
Altman-Z 5.6
ROIC/WACC2.67
WACC7.3%

2.3 Liquidity

TS has a Current Ratio of 3.62. This indicates that TS is financially healthy and has no problem in meeting its short term obligations.
TS has a Current ratio of 3.62. This is amongst the best in the industry. TS outperforms 89.23% of its industry peers.
A Quick Ratio of 2.27 indicates that TS has no problem at all paying its short term obligations.
TS's Quick ratio of 2.27 is amongst the best of the industry. TS outperforms 81.54% of its industry peers.
Industry RankSector Rank
Current Ratio 3.62
Quick Ratio 2.27

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.90% over the past year.
The Earnings Per Share has been growing by 35.10% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.67% in the past year.
Measured over the past years, TS shows a quite strong growth in Revenue. The Revenue has been growing by 14.19% on average per year.
EPS 1Y (TTM)11.9%
EPS 3YN/A
EPS 5Y35.1%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y42.42%
Revenue growth 5Y14.19%
Sales Q2Q%-16.89%

3.2 Future

Based on estimates for the next years, TS will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.80% on average per year.
Based on estimates for the next years, TS will show a decrease in Revenue. The Revenue will decrease by -3.60% on average per year.
EPS Next Y-34.71%
EPS Next 2Y-20.64%
EPS Next 3Y-15.34%
EPS Next 5Y-14.8%
Revenue Next Year-9.67%
Revenue Next 2Y-5.39%
Revenue Next 3Y-3.38%
Revenue Next 5Y-3.6%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.

8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 5.52, which indicates a rather cheap valuation of TS.
Based on the Price/Earnings ratio, TS is valued cheaply inside the industry as 98.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.24, TS is valued rather cheaply.
TS is valuated cheaply with a Price/Forward Earnings ratio of 7.92.
Based on the Price/Forward Earnings ratio, TS is valued a bit cheaper than the industry average as 73.85% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 19.93. TS is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 5.52
Fwd PE 7.92

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TS is valued cheaply inside the industry as 98.46% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TS is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.1
EV/EBITDA 2.74

4.3 Compensation for Growth

TS has an outstanding profitability rating, which may justify a higher PE ratio.
TS's earnings are expected to decrease with -15.34% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-20.64%
EPS Next 3Y-15.34%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.43%, TS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.17, TS pays a better dividend. On top of this TS pays more dividend than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TS pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.43%

5.2 History

The dividend of TS has a limited annual growth rate of 5.74%.
TS has paid a dividend for at least 10 years, which is a reliable track record.
TS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.74%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

TS pays out 16.25% of its income as dividend. This is a sustainable payout ratio.
DP16.25%
EPS Next 2Y-20.64%
EPS Next 3Y-15.34%

TENARIS SA-ADR

NYSE:TS (5/24/2024, 7:04:00 PM)

After market: 34.03 +0.43 (+1.28%)

33.6

+0.15 (+0.45%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap19.26B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.43%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 5.52
Fwd PE 7.92
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.16
Profitability
Industry RankSector Rank
ROA 18.58%
ROE 23.26%
ROCE
ROIC
ROICexc
ROICexgc
OM 28.8%
PM (TTM) 26.35%
GM 41.7%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.62
Quick Ratio 2.27
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.9%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-34.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.67%
Revenue growth 3Y42.42%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y