Tubacex (TUB) AI Stock Analysis

• Market Cap: €429.14M
• Dividend Yield: 5.58%
• Average Volume (3M): 235.93K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.05
• Revenue Growth: -10.37%
• EPS Growth: 38.82%
• Country: ES
• Employees: 2,578
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.13
• Shares Outstanding: 126,549,250
• 10 Day Avg. Volume: 286,832
• 30 Day Avg. Volume: 235,931
• PEG Ratio: -0.47
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -3.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €4.40
• Price Target Upside: 20.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: €4.00 ▲(9.89% Upside)

Tubacex's overall stock score is driven by its reasonable valuation and attractive dividend yield, which are offset by mixed financial performance and bearish technical indicators. The company's high leverage and negative cash flow pose financial risks, while the stock's current technical trends suggest caution.

Tubacex Business Overview & Revenue Model

Company Description

Tubacex, S.A., together with its subsidiaries, engages in the manufacturing and sale of stainless steel and nickel tubes in Spain and internationally. The company provides seamless stainless steel tubes, including CRA OCTG tubing and casing; aerospace, space exploration, and defense tubing; hydraulic and instrumentation tubing; subsea umbilicals; and medium and high pressure tubes. It also offers round bars, billets, and ingots; fittings, and special and machined components, such as butt welding fittings, tube bends, elbows, tees, reducers and caps; and Tubacoat, a ceramic coating for long steel and high-nickel alloy products. In addition, it provides design and simulation, logistics, repair and maintenance, and added-value services comprising shotpeening, connection threading, bending, cutting, machining and bevelling, welding, overlay, preassemblies, marking, finning, studding, polishing, grooving, lab testing, packaging, and storage services. Its products have applications in low carbon, power generation, oil and gas exploration and production, fertilizer, aerospace, hydrocarbon processing, and other industries. Tubacex, S.A. was incorporated in 1963 and is headquartered in Llodio, Spain.

How the Company Makes Money

Tubacex generates revenue primarily through the sale of its seamless tubes and pipes to various industries, including oil and gas, chemical, and aerospace. The company has a diversified revenue model that includes direct sales to end-users, as well as partnerships and contracts with major industry players. Key revenue streams come from long-term supply agreements, project-based contracts, and the provision of specialized products tailored to specific customer needs. Additionally, Tubacex benefits from its global presence, allowing it to tap into emerging markets and leverage strategic alliances with other manufacturers and distributors, which helps to enhance its market reach and stabilize earnings.

Tubacex Financial Statement Overview

Summary

Tubacex shows a mixed financial performance with strong revenue growth historically, but recent profitability and cash flow challenges. The company has improved its ROE, reflecting better equity utilization, but its high leverage and negative free cash flow suggest potential financial risks. Continued focus on improving operational efficiency and cash flow generation is crucial for future stability.

Income Statement

Tubacex has shown a consistent increase in total revenue over the years, although there was a decline in 2024 compared to 2023. Gross profit margins remain strong at approximately 60.7%. The net profit margin decreased from 4.26% in 2023 to 2.98% in 2024, indicating reduced profitability. EBIT and EBITDA margins also saw a decline in 2024, reflecting challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.30, which indicates a leveraged balance sheet. However, the return on equity (ROE) improved to 6.04% in 2024, up from 4.34% in 2023, showing better utilization of equity. The equity ratio is 28.36%, indicating moderate financial leverage.

Cash Flow

Tubacex experienced negative free cash flow in 2024, indicating potential liquidity challenges. The operating cash flow to net income ratio was negative, highlighting inefficiencies in converting earnings into actual cash flow. The company has shown volatile cash flow trends, which could pose risks to financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	759.40M	767.54M	852.39M	714.71M	341.86M	463.27M
Gross Profit	473.29M	466.20M	487.83M	440.62M	194.67M	230.31M
EBITDA	110.71M	111.00M	127.23M	97.33M	16.67M	36.41M
Net Income	22.02M	22.85M	36.33M	20.23M	-32.21M	-25.30M
Balance Sheet
Total Assets	1.31B	1.33B	1.21B	1.16B	1.04B	1.04B
Cash, Cash Equivalents and Short-Term Investments	134.21M	236.39M	179.01M	176.85M	157.99M	185.92M
Total Debt	531.20M	517.37M	507.13M	501.23M	526.33M	511.78M
Total Liabilities	881.60M	850.56M	917.82M	883.69M	792.60M	740.48M
Stockholders Equity	336.91M	378.03M	240.04M	221.48M	197.41M	240.86M
Cash Flow
Free Cash Flow	0.00	-121.94M	28.22M	60.82M	-50.66M	-33.49M
Operating Cash Flow	0.00	-34.98M	91.15M	87.61M	-23.93M	-8.83M
Investing Cash Flow	0.00	-85.63M	-60.98M	-22.43M	-6.64M	-25.01M
Financing Cash Flow	0.00	183.89M	-35.12M	-38.10M	11.05M	54.81M

Tubacex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:TUB, the sentiment is Negative. The current price of 3.64 is below the 20-day moving average (MA) of 3.67, below the 50-day MA of 3.67, and below the 200-day MA of 3.70, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 85.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:TUB.

Tubacex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TUB	67 Neutral	€429.14M	14.10	11.13%	5.58%	-10.37%	38.82%
ACX	65 Neutral	€2.83B	31.88	3.97%	4.87%	-3.02%	43.07%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
OHLA	52 Neutral	€638.41M	0.73	-7.07%	―	5.25%	-19.03%
TLGO	46 Neutral	€312.02M	20.37	-92.71%	1.97%	-16.41%	-952.46%