Tenaris (TEN) AI Stock Analysis

• Market Cap: €18.13B
• Dividend Yield: 4.42%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.86
• Revenue Growth: -11.36%
• EPS Growth: -20.23%
• Country: IT
• Employees: 25,874
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.37
• Shares Outstanding: 1,071,994,900
• 10 Day Avg. Volume: 1,699,035
• 30 Day Avg. Volume: 1,992,083
• PEG Ratio: -0.23
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 9.74
• 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: €18.46
• Price Target Upside: 12.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: €20.00 ▲(21.58% Upside)

Tenaris scores well due to its strong financial performance and attractive valuation. The company's robust revenue growth, profitability, and conservative balance sheet are significant strengths. Technical analysis supports a positive outlook, though caution is advised due to potential overbought signals. The absence of earnings call data and corporate events does not detract from the overall positive assessment.

Positive Factors

Financial Health

Tenaris's strong financial health and robust balance sheet provide a solid foundation for long-term stability and resilience against market fluctuations.

Profitability

Sustained profitability margins indicate efficient operations and a competitive edge in managing costs, supporting long-term earnings potential.

Cash Generation

Robust cash generation supports ongoing investments and financial flexibility, enhancing Tenaris's ability to weather industry cycles.

Negative Factors

Revenue Decline

A decline in revenue growth could signal weakening demand or competitive pressures, potentially impacting future profitability and market position.

Free Cash Flow

Negative free cash flow growth may limit Tenaris's ability to invest in growth opportunities or return capital to shareholders, affecting long-term prospects.

Revenue Growth

Negative revenue growth suggests potential challenges in market demand or competition, which could hinder Tenaris's expansion and market share.

Tenaris Business Overview & Revenue Model

Company Description

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 company offers steel casings, tubing products, mechanical and structural pipes, cold-drawn pipes, and premium joints and couplings; coiled tubing products for oil and gas drilling and workovers, and subsea pipelines; and umbilical tubing products; and tubular accessories. It also provides sucker rods, industrial equipment, heat exchangers, and utility conduits for buildings, as well as sells energy and raw materials. In addition, it offers financial services. The company operates in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. Tenaris S.A. was incorporated in 2001 and is based in Luxembourg, Luxembourg. Tenaris S.A. is a subsidiary of Techint Holdings S.à r.l.

How the Company Makes Money

Tenaris generates revenue primarily through the sale of its steel pipes and related services to the oil and gas sector, which constitutes a significant portion of its business. The company operates on a revenue model that includes direct sales to energy companies, as well as contracts for long-term supply agreements. Key revenue streams include the sale of seamless and welded pipes, premium connections, and value-added services such as technical support and supply chain management. Additionally, Tenaris benefits from strategic partnerships and alliances with major oil and gas operators, enhancing its market position and creating opportunities for large-scale contracts. Factors contributing to its earnings include the global demand for energy, ongoing investments in energy infrastructure, and the company's ability to innovate and adapt its product offerings to meet the evolving needs of the market.

Tenaris Financial Statement Overview

Summary

Tenaris demonstrates strong financial health with solid profitability and a robust balance sheet. While cash flow generation is generally strong, recent declines in revenue and free cash flow growth warrant attention. Overall, the company is well-positioned financially but should focus on reversing the recent revenue and cash flow trends.

Income Statement

Tenaris shows strong profitability with a consistent gross profit margin around 34-43% and a net profit margin of 17-26% over the years. However, recent revenue growth has been negative, indicating a potential slowdown. The EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating low financial leverage and strong equity position. Return on equity is robust, showcasing effective management of shareholder funds. The equity ratio is stable, reflecting a solid financial structure.

Cash Flow

Operating cash flow is strong relative to net income, indicating good cash generation from operations. However, free cash flow growth has been negative recently, which could be a concern if it persists. The free cash flow to net income ratio is healthy, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.82B	12.52B	14.87B	11.76B	6.52B	5.15B
Gross Profit	4.02B	4.39B	6.47B	4.67B	1.91B	1.06B
EBITDA	3.01B	3.16B	5.29B	3.82B	1.86B	86.55M
Net Income	2.00B	2.04B	3.92B	2.55B	1.10B	-642.42M
Balance Sheet
Total Assets	20.47B	20.45B	21.08B	17.55B	14.45B	13.72B
Cash, Cash Equivalents and Short-Term Investments	2.99B	3.05B	3.61B	1.53B	715.98M	1.46B
Total Debt	477.51M	582.32M	203.96M	840.94M	448.22M	876.35M
Total Liabilities	3.21B	3.64B	4.05B	3.52B	2.34B	2.27B
Stockholders Equity	17.04B	16.59B	16.84B	13.91B	11.96B	11.26B
Cash Flow
Free Cash Flow	1.61B	2.16B	3.78B	769.87M	-125.52M	1.33B
Operating Cash Flow	2.30B	2.87B	4.40B	1.17B	119.08M	1.52B
Investing Cash Flow	-4.22M	-1.40B	-2.69B	-163.56M	267.90M	-2.09B
Financing Cash Flow	-2.40B	-2.40B	-1.13B	-178.34M	-647.96M	-375.32M

Tenaris Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TEN, the sentiment is Neutral. The current price of 16.45 is below the 20-day moving average (MA) of 17.20, below the 50-day MA of 16.62, and above the 200-day MA of 15.60, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 38.97 is Neutral, neither overbought nor oversold. The STOCH value of 10.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:TEN.

Tenaris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	78 Outperform	€18.13B	10.01	12.14%	4.42%	-11.36%	-20.23%
SRG	72 Outperform	€18.73B	13.41	17.62%	5.20%	-8.04%	30.49%
TRN	72 Outperform	€17.86B	16.15	19.67%	4.46%	10.18%	8.43%
SPM	66 Neutral	€4.58B	13.89	13.05%	7.30%	18.52%	29.29%
ENI	63 Neutral	€47.60B	17.25	5.51%	6.52%	-5.46%	13.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%