Stock Analysis

A Look At Tenaris S.A.'s (BIT:TEN) Exceptional Fundamentals

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BIT:TEN
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Tenaris S.A. (BIT:TEN) due to its excellent fundamentals in more than one area. TEN is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Tenaris here.

Flawless balance sheet with proven track record

In the previous year, TEN has ramped up its bottom line by 93%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, TEN also outperformed its industry, which delivered a growth of -35%. This is an notable feat for the company. TEN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that TEN has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. TEN's has produced operating cash levels of 1.13x total debt over the past year, which implies that TEN's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

BIT:TEN Income Statement, March 26th 2019
BIT:TEN Income Statement, March 26th 2019

Next Steps:

For Tenaris, there are three important factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for TEN’s future growth? Take a look at our free research report of analyst consensus for TEN’s outlook.
  2. Valuation: What is TEN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TEN is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TEN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

About BIT:TEN

Tenaris

Tenaris S.A., together with its subsidiaries, produces and sells seamless and welded steel tubular products; and provides related services for the oil and gas industry, and other industrial applications.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation2
Future Growth1
Past Performance5
Financial Health6
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet with solid track record.