BIT:TEN

Stock Analysis Report

Executive Summary

Tenaris S.A., through 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.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TEN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-14.2%

TEN

-7.6%

IT Energy Services

-7.6%

IT Market


1 Year Return

-28.3%

TEN

-23.1%

IT Energy Services

8.7%

IT Market

Return vs Industry: TEN underperformed the Italian Energy Services industry which returned -23.1% over the past year.

Return vs Market: TEN underperformed the Italian Market which returned 8.7% over the past year.


Shareholder returns

TENIndustryMarket
7 Day-14.2%-7.6%-7.6%
30 Day-14.8%-9.8%-0.7%
90 Day-12.8%-11.6%-1.1%
1 Year-25.9%-28.3%-21.1%-23.1%13.5%8.7%
3 Year-41.5%-46.1%-35.6%-42.8%27.1%14.3%
5 Year-24.9%-35.1%-59.2%-76.7%10.0%-27.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tenaris undervalued compared to its fair value and its price relative to the market?

44.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEN (€8.8) is trading below our estimate of fair value (€14.89)

Significantly Below Fair Value: TEN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TEN is poor value based on its PE Ratio (15.2x) compared to the Energy Services industry average (11.6x).

PE vs Market: TEN is good value based on its PE Ratio (15.2x) compared to the Italian market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TEN is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: TEN is overvalued based on its PB Ratio (0.9x) compared to the XE Energy Services industry average (0.7x).


Next Steps

Future Growth

How is Tenaris forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEN's forecast earnings growth (12.7% per year) is above the savings rate (1.2%).

Earnings vs Market: TEN's earnings (12.7% per year) are forecast to grow faster than the Italian market (10.1% per year).

High Growth Earnings: TEN's earnings are forecast to grow, but not significantly.

Revenue vs Market: TEN's revenue (7% per year) is forecast to grow faster than the Italian market (4.2% per year).

High Growth Revenue: TEN's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEN's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Tenaris performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEN has high quality earnings.

Growing Profit Margin: TEN's current net profit margins (10.2%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: TEN's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: TEN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TEN had negative earnings growth (-15.2%) over the past year, making it difficult to compare to the Energy Services industry average (35.2%).


Return on Equity

High ROE: TEN's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tenaris's financial position?


Financial Position Analysis

Short Term Liabilities: TEN's short term assets ($5.7B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: TEN's short term assets ($5.7B) exceed its long term liabilities ($876.2M).


Debt to Equity History and Analysis

Debt Level: TEN's debt to equity ratio (6.7%) is considered satisfactory.

Reducing Debt: TEN's debt to equity ratio has reduced from 7.8% to 6.7% over the past 5 years.

Debt Coverage: TEN's debt is well covered by operating cash flow (185.8%).

Interest Coverage: TEN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: TEN's debt is covered by short term assets (assets are 6.9x debt).


Next Steps

Dividend

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

4.48%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.1%markettop25%4.7%industryaverage5.1%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: TEN's dividend (4.28%) is higher than the bottom 25% of dividend payers in the Italian market (2.08%).

High Dividend: TEN's dividend (4.28%) is low compared to the top 25% of dividend payers in the Italian market (4.68%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.2%), TEN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TEN's dividends in 3 years are forecast to be covered by earnings (56.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Paolo Rocca (66yo)

17.3yrs

Tenure

0

Mr. Paolo Rocca serves the Chief Executive Officer of Tubos de Acero de México S.A. Mr. Rocca serves as Chief Executive Officer of Techint. Mr. Rocca serves as Honorary President of Techint at Ternium Side ...


Leadership Team

NamePositionTenureCompensationOwnership
Paolo Rocca
Chairman & CEO17.3yrsno datano data
Alicia Mondolo
Chief Financial Officer0.5yrsno datano data
Marcelo Ramos
Chief Technology Officer9.8yrsno datano data
Giovanni Sardagna
Investor Relations Director0yrsno datano data
Paola Mazzoleni
Chief Human Resources Officer4.1yrsno datano data
Alejandro Lammertyn
Chief Digital & Planning Officer6.8yrsno datano data
Sergio de la Maza
President of Mexico14.1yrsno datano data
Renato Catallini
President of Brazil7.3yrsno datano data
Javier Alvarez
President of Southern Cone9.7yrsno datano data
Luca Zanotti
President of U.S.A. Operations2.1yrsno datano data

7.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: TEN's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paolo Rocca
Chairman & CEO17.3yrsno datano data
Roberto Luis Monti
Independent Director15.1yrsno datano data
Guillermo Francisco Vogel Hinojosa
Vice Chairman of the Board0yrsno data0.072% $7.5m
Jaime José Serra Puche
Independent Director17.1yrsno datano data
Roberto Bonatti
Director17.1yrsno datano data
Carlos Alberto Condorelli
Director12.7yrsno data0.0057% $591.1k
Amadeo Vázquez Vázquez
Independent Director17.1yrsno datano data
Gianfelice Mario Rocca
Director17.1yrsno datano data
Germán Curá
Vice Chairman of the Board0yrsno datano data
Yves Speeckaert
Independent Director2.8yrsno datano data

16.8yrs

Average Tenure

68yo

Average Age

Experienced Board: TEN's board of directors are seasoned and experienced ( 16.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Tenaris S.A.
  • Ticker: TEN
  • Exchange: BIT
  • Founded: 2001
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: €10.389b
  • Shares outstanding: 1.18b
  • Website: https://www.tenaris.com

Number of Employees


Location

  • Tenaris S.A.
  • 26, Boulevard Royal
  • 4th Floor
  • Luxembourg City
  • 2449
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSNYSE (New York Stock Exchange)SPONSORED ADSUSUSDDec 2002
TW1DB (Deutsche Boerse AG)SPONSORED ADSDEEURDec 2002
TNRS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2002
TS *BMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNDec 2002
TENBIT (Borsa Italiana)YesOrdinary SharesITEURDec 2002
TW11DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2002
0HXBLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2002
TENMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2002
TENWBAG (Wiener Boerse AG)YesOrdinary SharesATEURDec 2002

Biography

Tenaris S.A., through 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 company offers products for oil and gas drilling operations, such as casing and tubing products, premium connections, drill pipes, coiled tubing, hot-rolled and cold-drawn seamless tubes, perforating guns, tubular and non-tubular accessories, and devices. It also provides offshore line pipe products, including top tensioned and steel catenary risers, export lines and flowlines, bends, corrosion resistant alloys, coiled line pipes, umbilical tubings, and coated pipes; and seamless and welded tubes for onshore line pipe; various seamless steel tubes and pipes for refineries, petrochemical, and gas-processing plants; and tubular products for the power generation industry. In addition, the company offers sucker rods, couplings, and accessories, as well as technical support services; hot-rolled and cold-drawn seamless steel tubes and components for use in standard mechanical engineering application, and civil and industrial installations, as well as for manufacturing earth-moving machines, architectural structures, non-oil drilling systems, and gas cylinders; and seamless tubes and tube-based components for car manufacturers and their suppliers. Additionally, it offers financial services. The company operates in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. Tenaris S.A. was founded in 2001 and is headquartered in Luxembourg City, Luxembourg. Tenaris S.A. is a subsidiary of Techint Holdings S.à r.l. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 21:00
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.