NYSE:TEN

Stock Analysis Report

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Executive Summary

Tenneco Inc. designs, manufactures, and sells clean air, powertrain, and ride performance products and systems for light vehicle, commercial truck, off-highway, industrial, and aftermarket customers worldwide. More Details

Rewards

Trading at 80.7% below our estimate of its fair value

Earnings are forecast to grow 103.75% per year

Risk Analysis

No risks detected for TEN from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TEN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TEN's weekly volatility has decreased from 16% to 7% over the past year.


Market Performance


7 Day Return

2.7%

TEN

-4.9%

US Auto Components

-4.0%

US Market


1 Year Return

121.3%

TEN

102.0%

US Auto Components

46.6%

US Market

Return vs Industry: TEN exceeded the US Auto Components industry which returned 102% over the past year.

Return vs Market: TEN exceeded the US Market which returned 46.6% over the past year.


Shareholder returns

TENIndustryMarket
7 Day2.7%-4.9%-4.0%
30 Day8.1%-1.0%-4.1%
90 Day10.5%4.0%3.3%
1 Year121.3%121.3%103.0%102.0%49.8%46.6%
3 Year-78.4%-79.0%24.1%15.7%47.8%38.4%
5 Year-75.1%-76.3%83.2%58.7%116.6%92.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEN ($11.62) is trading below our estimate of fair value ($60.21)

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


Price To Earnings Ratio

PE vs Industry: TEN is unprofitable, so we can't compare its PE Ratio to the US Auto Components industry average.

PE vs Market: TEN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TEN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TEN has negative assets, so we can't compare its PB Ratio to the US Auto Components industry average.


Next Steps

Future Growth

How is Tenneco forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

103.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: TEN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TEN's is expected to become profitable in the next 3 years.

Revenue vs Market: TEN's revenue (5.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: TEN's revenue (5.1% 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 very high in 3 years time (63.6%).


Next Steps

Past Performance

How has Tenneco performed over the past 5 years?

-77.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEN is currently unprofitable.

Growing Profit Margin: TEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TEN is unprofitable, and losses have increased over the past 5 years at a rate of 77.7% per year.

Accelerating Growth: Unable to compare TEN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TEN is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (16.5%).


Return on Equity

High ROE: TEN has a negative Return on Equity (-563.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tenneco's financial position?


Financial Position Analysis

Short Term Liabilities: TEN's short term assets ($5.7B) exceed its short term liabilities ($4.7B).

Long Term Liabilities: TEN's short term assets ($5.7B) do not cover its long term liabilities ($6.9B).


Debt to Equity History and Analysis

Debt Level: TEN's debt to equity ratio (2056%) is considered high.

Reducing Debt: TEN's debt to equity ratio has increased from 239.4% to 2056% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TEN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TEN is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 37.3% per year.


Next Steps

Dividend

What is Tenneco current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TEN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TEN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TEN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Brian Kesseler (53 yo)

1.17yrs

Tenure

US$9,297,547

Compensation

Mr. Brian J. Kesseler has been the Chief Executive Officer of Tenneco Inc., since January 7, 2020 and its Director since October 11, 2016. He served as Co-Chief Executive Officer of Tenneco Inc. from Octob...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD9.30M) is above average for companies of similar size in the US market ($USD2.21M).

Compensation vs Earnings: Brian's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Kesseler
CEO & Director1.17yrsUS$9.30m0.22%
$ 2.0m
Peng Guo
Executive VP & President of Clean Air10.67yrsUS$2.42m0.46%
$ 4.1m
Bradley Norton
Executive VP & President of Ride Performance2.42yrsUS$2.73m0.0073%
$ 65.9k
Rainer Jueckstock
Executive VP & President of Powertrain2.42yrsUS$3.42m0.027%
$ 241.8k
Matti Masanovich
Executive VP & CFO0.58yrno datano data
Kevin Baird
Executive VP & Chief Operating Officer0.58yrno datano data
John Patouhas
VP & Chief Accounting Officer2.08yrsno data0.00086%
$ 7.8k
Rusty Patel
Senior VP & Chief Information Officer3.17yrsno datano data
Thomas Sabatino
Executive VP0.083yrno datano data
Chris Brathwaite
Senior VP & Chief Communications Officer1yrno datano data
Kaled Awada
Senior VP & Chief Human Resources Officer2.5yrsno data0.018%
$ 159.7k
Brandon Smith
Senior Vice President0.083yrUS$2.10m0.043%
$ 389.3k

1.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: TEN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Brian Kesseler
CEO & Director1.17yrsUS$9.30m0.22%
$ 2.0m
Thomas Freyman
Independent Director8.17yrsUS$250.00k0.096%
$ 872.9k
Dennis Letham
Independent Chairman of the Board0.83yrUS$270.00k0.086%
$ 778.9k
John Stroup
Independent Director0.50yrno data0.047%
$ 421.5k
Roy Armes
Independent Director1yrno data0.036%
$ 325.8k
Jane Warner
Independent Director16.42yrsUS$250.00k0.070%
$ 637.6k
James Metcalf
Independent Director6.67yrsUS$250.00k0.044%
$ 401.1k
Aleksandra Miziolek
Independent Director1yrno data0.051%
$ 462.2k
Charles Stevens
Independent Director1.08yrsno data0.026%
$ 236.5k
Denise Gray
Independent Director2yrsUS$200.00k0.032%
$ 287.4k

1.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TEN's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Tenneco Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tenneco Inc.
  • Ticker: TEN
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$905.117m
  • Shares outstanding: 81.69m
  • Website: https://www.tenneco.com

Number of Employees


Location

  • Tenneco Inc.
  • 500 North Field Drive
  • Lake Forest
  • Illinois
  • 60045
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TENNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJan 1968
TNNDB (Deutsche Boerse AG)YesClass A Common StockDEEURJan 1968
0RT7LSE (London Stock Exchange)YesClass A Common StockGBUSDJan 1968

Biography

Tenneco Inc. designs, manufactures, and sells clean air, powertrain, and ride performance products and systems for light vehicle, commercial truck, off-highway, industrial, and aftermarket customers worldw...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 23:49
End of Day Share Price2021/03/08 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.