Tenaris (TEN) AI Stock Analysis

• Market Cap: €17.29B
• Dividend Yield: 5.9%
• Average Volume (3M): 2.34M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.82
• Revenue Growth: -14.41%
• EPS Growth: -44.84%
• Country: IT
• Employees: 25,874
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.42
• Shares Outstanding: 1,071,994,900
• 10 Day Avg. Volume: 1,561,005
• 30 Day Avg. Volume: 2,335,556
• PEG Ratio: -1.18
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.49
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 4.79
• Enterprise Value/Ebitda: 1.47
• 1Y Price Target: €18.50
• Price Target Upside: 14.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 81 Outperform
• Price Target: €18.00 ▲(11.66%Upside)

Tenaris receives a strong overall score due to its robust financial performance marked by high profitability and low leverage. Favorable valuation metrics further support an attractive investment case. Technical indicators show moderate momentum, suggesting a stable outlook. The absence of additional earnings call and corporate event data does not detract from the overall positive assessment.

Positive Factors

Financial Performance

Tenaris beat earnings expectations by +7% vs consensus.

Revenue

The combination of stronger sales to Europe and rising OCTG prices in the US enabled revenue of USD2.85bn (+5% vs consensus) and an EBITDA margin of 23.2%.

Negative Factors

Demand

Oil price weakness will hit the shorter cycle NAM OCTG demand, forcing US E&Ps to reduce activity.

Market Outlook

Analyst downgrades the rating from Neutral to Underperform due to a lower outlook for FY25 and FY26.

Pricing Pressure

OCTG pricing in the US is weakening for the first time in 8 months.

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 steel pipes and related services, catering mainly to the oil and gas industry. The company's revenue model hinges on manufacturing and distributing seamless and welded tubular products, which are essential for drilling, completing, and transporting oil and gas. Tenaris also offers premium connections, which are high-value products that provide reliable and durable joint solutions for challenging oil and gas environments. Key revenue streams include contracts with major oil and gas companies and long-term agreements that ensure consistent demand for its products and services. Additionally, Tenaris's global manufacturing and service network enables it to respond swiftly to client needs and market demands, contributing to its earnings. The company leverages strategic partnerships and joint ventures to expand its market reach and enhance its technological capabilities, further driving revenue growth.

Tenaris Financial Statement Overview

Summary

Tenaris showcases robust financial health with strong profitability, low leverage, and efficient cash flow management. Despite a minor revenue dip, the company's stability and operational efficiency remain exemplary.

Income Statement

Tenaris shows strong profitability with a healthy gross profit margin of 34.0% and EBIT margin of 18.0% for TTM. Net profit margin stands at 15.1%, indicating efficient cost management. However, there's a slight revenue decline from the previous year, suggesting potential market challenges.

Balance Sheet

The company maintains a strong financial position with a low debt-to-equity ratio of 0.03, indicating minimal leverage. Return on Equity (ROE) at 10.5% reflects efficient use of equity capital. High equity ratio of 83.3% signifies financial stability and low reliance on debt.

Cash Flow

Tenaris demonstrates solid cash flow management with a high operating cash flow to net income ratio of 1.55, indicating strong cash generation. Free cash flow to net income ratio of 1.15 supports sustainable cash flow generation, despite a slight decline in free cash flow growth.

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

Tenaris Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 16.12 is above the 20-day moving average (MA) of 16.02, above the 50-day MA of 15.45, and below the 200-day MA of 16.18, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.32 is Neutral, 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	81 Outperform	€17.29B	10.55	10.53%	5.90%	-14.41%	-44.84%
SPM	77 Outperform	€4.69B	15.27	12.44%	7.17%	22.53%	73.36%
SRG	75 Outperform	€16.89B	13.42	16.18%	6.92%	-16.40%	10.90%
ENI	73 Outperform	€43.21B	17.01	4.83%	7.04%	-1.16%	-23.76%
TRN	69 Neutral	€17.06B	16.04	19.05%	6.52%	15.80%	19.91%
Sector *	67 Neutral	$15.07B	9.71	6.33%	5.26%	4.07%	-67.00%