Tenaris S.A.
Tenaris S.A. Fundamental Analysis
Tenaris S.A. (TS) shows moderate financial fundamentals with a PE ratio of 16.45, profit margin of 16.18%, and ROE of 11.69%. The company generates $12.5B in annual revenue with weak year-over-year growth of -0.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TS's fundamental strength across five key dimensions:
Efficiency Score
WeakTS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTS trades at attractive valuation levels.
Growth Score
WeakTS faces weak or negative growth trends.
Financial Health Score
ExcellentTS maintains a strong and stable balance sheet.
Profitability Score
ModerateTS maintains healthy but balanced margins.
Key Financial Metrics
Is TS Expensive or Cheap?
P/E Ratio
TS trades at 16.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TS's PEG of 1.07 indicates fair valuation.
Price to Book
The market values Tenaris S.A. at 1.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.46 times EBITDA. This signals the market has high growth expectations.
How Well Does TS Make Money?
Net Profit Margin
For every $100 in sales, Tenaris S.A. keeps $16.18 as profit after all expenses.
Operating Margin
Core operations generate 19.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.69 in profit for every $100 of shareholder equity.
ROA
Tenaris S.A. generates $9.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tenaris S.A. produces operating cash flow of $2.53B, showing steady but balanced cash generation.
Free Cash Flow
Tenaris S.A. generates strong free cash flow of $1.93B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.61 in free cash annually.
FCF Yield
TS converts 5.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How TS Stacks Against Its Sector Peers
| Metric | TS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.45 | 21.39 | Better (Cheaper) |
| ROE | 11.69% | 922.00% | Weak |
| Net Margin | 16.18% | -57637.00% (disorted) | Strong |
| Debt/Equity | 0.03 | -0.49 (disorted) | Distorted |
| Current Ratio | 4.15 | 5.04 | Strong Liquidity |
| ROA | 9.59% | -1987.00% (disorted) | Weak |
TS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tenaris S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
170.81%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
450.00%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
103.65%
Industry Style: Cyclical, Value, Commodity
High Growth