BME:TUB

Stock Analysis Report

Executive Summary

Tubacex, S.A., together with its subsidiaries, manufactures and sells stainless steel and high-nickel alloy tubes and pipes worldwide.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Tubacex's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

TUB

3.5%

ES Metals and Mining

2.7%

ES Market


1 Year Return

-8.9%

TUB

-5.1%

ES Metals and Mining

4.5%

ES Market

Return vs Industry: TUB underperformed the Spanish Metals and Mining industry which returned -5.1% over the past year.

Return vs Market: TUB underperformed the Spanish Market which returned 4.5% over the past year.


Share holder returns

TUBIndustryMarket
7 Day3.4%3.5%2.7%
30 Day-5.1%-4.9%1.2%
90 Day-1.1%-7.4%-1.4%
1 Year-7.7%-8.9%1.4%-5.1%8.1%4.5%
3 Year1.9%0.6%34.6%16.5%16.9%6.1%
5 Year-20.7%-24.3%38.5%14.2%12.7%-8.7%

Price Volatility Vs. Market

How volatile is Tubacex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tubacex undervalued based on future cash flows and its price relative to the stock market?

11%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TUB (€2.7) is trading below our estimate of fair value (€3.03)

Significantly Undervalued: TUB is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: TUB is poor value based on its PE Ratio (22.3x) compared to the Metals and Mining industry average (9.1x).

PE vs Market: TUB is poor value based on its PE Ratio (22.3x) compared to the Spanish market (16.6x).


Price Based on Expected Growth

Low PEG Ratio: TUB is good value based on its PEG Ratio (0.5x)


Price Based on Value of Assets

PB vs Industry: TUB is overvalued based on its PB Ratio (1.2x) compared to the XE Metals and Mining industry average (0.9x).


Next Steps

Future Growth

How is Tubacex expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

41.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TUB's forecast earnings growth (41.1% per year) is above the savings rate (1.5%).

Earnings vs Market: TUB's earnings (41.1% per year) are forecast to grow faster than the Spanish market (7.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TUB's revenue (6.7% per year) is forecast to grow faster than the Spanish market (3.7% per year).

High Growth Revenue: TUB's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TUB's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Tubacex performed over the past 5 years?

-36.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TUB's earnings have declined by -36.1% per year over the past 5 years.

Accelerating Growth: TUB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TUB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-6.3%).


Return on Equity

High ROE: TUB's Return on Equity (6.1%) is considered low.


Return on Assets

ROA vs Industry: TUB's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: TUB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tubacex's financial position?


Financial Position Analysis

Short Term Liabilities: TUB's short term assets (€639.2M) exceeds its short term liabilities (€607.8M)

Long Term Liabilities: TUB's short term assets (639.2M) exceeds its long term liabilities (178.4M)


Debt to Equity History and Analysis

Debt Level: TUB's debt to equity ratio (162.7%) is considered high

Reducing Debt: TUB's debt to equity ratio has increased from 72.5% to 162.7% over the past 5 years.

Debt Coverage: TUB's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: TUB's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: TUB has a high level of physical assets or inventory.

Debt Coverage by Assets: TUB's debt is covered by short term assets (assets are 1.352160x debt).


Next Steps

Dividend

What is Tubacex's current dividend yield, its reliability and sustainability?

2.31%

Expected Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.2%markettop25%5.7%industryaverage4.6%forecastin3Years2.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TUB's dividend (1.85%) isn’t notable compared to the bottom 25% of dividend payers in the Spanish market (2.24%).

High Dividend: TUB's dividend (1.85%) is low compared to the top 25% of dividend payers in the Spanish market (5.66%).

Stable Dividend: TUB's dividend payments have been volatile in the past 10 years.

Growing Dividend: TUB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.3%), TUB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TUB's dividends in 3 years are forecast to be well covered by earnings (24% payout ratio).


Next Steps

Management

What is the CEO of Tubacex's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average board tenure


CEO

Jesus Esmoris (55yo)

6.8yrs

Tenure

€442,000

Compensation

Mr. Jesus Esmoris has been the Chief Executive Officer of Tubacex, S.A. since January 28, 2013. Mr. Esmorís serves as the Managing Director of Business Development & Products at Cie Automotive, S.A. and se ...


CEO Compensation Analysis

Compensation vs. Market: Jesus's total compensation ($USD0.00) is too low to compare against companies of similar size in the Spanish market ($USD0.00).

Compensation vs Earnings: Jesus's compensation has been consistent with company performance over the past year.


Board Age and Tenure

4.4yrs

Average Tenure

66yo

Average Age

Experienced Board: TUB's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: TUB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€1,02409 Oct 19
Rosa Garcia
EntityIndividual
Shares400
Max Price€2.56
Buy€20,40309 Oct 19
Jorge Sendagorta Gomendio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,970
Max Price€2.56
Buy€13,47308 Oct 19
Fsc Ingeniería Y Tecnología, S.L.
EntityCompany
Shares5,264
Max Price€2.56
Buy€34,80207 Oct 19
Antonio González Adalid García-Zozaya
EntityIndividual
Role
Vice Chairman
Vice President of the Board
Shares13,334
Max Price€2.61
Buy€104,63704 Oct 19
Fsc Ingeniería Y Tecnología, S.L.
EntityCompany
Shares41,034
Max Price€2.55
Buy€44,66504 Oct 19
Antonio González Adalid García-Zozaya
EntityIndividual
Role
Vice Chairman
Vice President of the Board
Shares16,666
Max Price€2.68
Buy€717,50005 Aug 19
Jorge Sendagorta Gomendio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250,000
Max Price€2.87
Buy€62,74913 May 19
Ivan Marten
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares36,482
Max Price€1.72

Ownership Breakdown


Management Team

  • Guillermo Ruiz-Longarte

    COO & Financial Corporate Director

    • Tenure: 0yrs
  • Anton Azlor Villa

    Vice President of Sales & Marketing and Commercial Corporate Director

    • Tenure: 0yrs
  • Jesus Esmoris (55yo)

    CEO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: €442.00k
  • Manuel Sarabia Figueroa

    People Corporate Director

    • Tenure: 0yrs
  • Celestino Danis

    MD of Steel & Extrusions and Corporate Director of Extrusions & Cold

    • Tenure: 0yrs
  • Maider Cuadra Etxebarrena

    Secretary

    • Tenure: 6.7yrs
  • Ajay Sambrani

    Managing Director of Asia

    • Tenure: 0yrs
  • Javier Lorenzo

    Managing Director of Operations - USA

    • Tenure: 0yrs
  • Iker Azkargorta

    MD of Big Pipes & Fittings and Corporate Director of Big OD Pipes & Connections

    • Tenure: 0yrs

Board Members

  • Antonio González Adalid García-Zozaya (69yo)

    Vice President of the Board

    • Tenure: 0.8yrs
    • Compensation: €74.00k
  • Álvaro Videgain Muro (68yo)

    President of the Board

    • Tenure: 26.8yrs
    • Compensation: €164.00k
  • Ignacio Marco-Gardoqui Ibáñez (72yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: €77.00k
  • Jorge Sendagorta Gomendio

    Independent Director

    • Tenure: 1.4yrs
  • Manuel Moreu Munaiz (66yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: €59.00k
  • Antón Pradera Jáuregui (64yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: €44.00k
  • Jesus Esmoris (55yo)

    CEO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: €442.00k
  • Nuria López De Guereñu Ansola

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: €42.00k
  • Isabel Lopez

    Proprietary Director

    • Tenure: 1.7yrs
  • Ivan Marten (60yo)

    Independent Director

    • Tenure: 1.4yrs

Company Information

Tubacex, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tubacex, S.A.
  • Ticker: TUB
  • Exchange: BME
  • Founded: 1963
  • Industry: Steel
  • Sector: Materials
  • Market Cap: €350.052m
  • Shares outstanding: 129.65m
  • Website: https://www.tubacex.com

Number of Employees


Location

  • Tubacex, S.A.
  • Tres Cruces 8
  • Llodio
  • Basque Country
  • 1400
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TUBBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 1992
TCXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0KD1LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
TUBEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
TUB NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992

Biography

Tubacex, S.A., together with its subsidiaries, manufactures and sells stainless steel and high-nickel alloy tubes and pipes worldwide. The company offers hot and cold finished stainless steel pipes, welded ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:37
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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