Tubacex (TUB) AI Stock Analysis

• Market Cap: €417.46M
• Dividend Yield: 5.69%
• Average Volume (3M): 564.01K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.12
• 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: 523,679
• 30 Day Avg. Volume: 564,012
• 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: 22.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: €4.00 ▲(11.73% Upside)

Tubacex's overall stock score reflects a balance of reasonable valuation and dividend yield against financial and technical challenges. While the company has attractive valuation metrics, its financial leverage and cash flow issues pose risks that need addressing.

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 stainless steel and high-alloyed tubular products. The company serves various industries, with a significant portion of its income derived from the oil and gas sector, where its products are essential for exploration, extraction, and transportation processes. Tubacex also caters to the power generation and aerospace sectors, among others, providing customized solutions that meet stringent industry standards. The company's revenue model is bolstered by strategic partnerships and long-term contracts with major players in these industries, ensuring a steady flow of income. Additionally, Tubacex invests in research and development to continuously improve its product offerings and maintain a competitive edge in the market.

Tubacex Financial Statement Overview

Summary

Tubacex shows a mixed financial performance with strong historical revenue growth but recent challenges in profitability and cash flow. High leverage and negative free cash flow highlight potential risks, despite improved ROE.

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	791.73M	767.54M	852.39M	714.71M	341.86M	460.53M
Gross Profit	484.86M	466.20M	487.83M	440.62M	194.67M	230.31M
EBITDA	101.42M	111.00M	127.23M	97.33M	16.67M	36.41M
Net Income	19.32M	22.85M	36.33M	20.23M	-32.21M	-25.30M
Balance Sheet
Total Assets	1.20B	1.33B	1.21B	1.16B	1.04B	1.04B
Cash, Cash Equivalents and Short-Term Investments	117.80M	236.39M	179.01M	175.43M	157.99M	185.92M
Total Debt	481.90M	517.37M	507.13M	501.23M	526.33M	511.78M
Total Liabilities	903.90M	850.56M	917.82M	883.69M	792.60M	740.48M
Stockholders Equity	244.40M	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: 3.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.58 is below the 20-day moving average (MA) of 3.72, below the 50-day MA of 3.94, and below the 200-day MA of 3.61, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 31.62 is Neutral, neither overbought nor oversold. The STOCH value of 6.34 is Positive, 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
ACX	70 Outperform	€2.37B	26.67	3.97%	5.81%	-3.02%	43.07%
TUB	67 Neutral	€417.46M	13.68	11.13%	5.69%	-10.37%	38.82%
Sector *	61 Neutral	$9.70B	7.16	-0.14%	3.12%	3.13%	-55.47%
OHLA	56 Neutral	€523.72M	0.73	-7.07%	―	5.25%	-19.03%
TLGO	46 Neutral	€354.54M	20.37	-47.29%	1.97%	2.64%	-867.79%

Tubacex Corporate Events

Tubacex Renews €200 Million Sustainability-Linked Promissory Notes Program

Tubacex S.A. has announced the renewal of its promissory notes issuance program, with a focus on sustainability, amounting to up to 200 million euros in the Alternative Fixed Income Market. This move, authorized by the company’s General Shareholders’ Meeting and executed by the Board of Directors, underscores Tubacex’s commitment to sustainable financial practices and may enhance its market position by aligning financial operations with environmental goals.

The most recent analyst rating on (ES:TUB) stock is a Buy with a EUR4.70 price target. To see the full list of analyst forecasts on Tubacex stock, see the ES:TUB Stock Forecast page.

Tubacex Boosts Shareholder Remuneration Amid Strategic Growth

Tubacex announced a significant increase in shareholder remuneration to 25 million euros, a 72% rise from the previous year, reflecting strong cash generation and a strategic focus on reducing debt. The company achieved key milestones in 2024, including a major contract with ADNOC and a partnership with Mubadala, positioning itself strongly in high-value markets despite global economic uncertainties.

The most recent analyst rating on (ES:TUB) stock is a Buy with a EUR4.70 price target. To see the full list of analyst forecasts on Tubacex stock, see the ES:TUB Stock Forecast page.