Tenaris (TEN) AI Stock Analysis

• Market Cap: €17.58B
• Dividend Yield: 4.23%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.84
• Revenue Growth: -14.41%
• EPS Growth: -44.84%
• Country: IT
• Employees: 25,874
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.42
• Shares Outstanding: 1,180,536,900
• 10 Day Avg. Volume: 1,681,577
• 30 Day Avg. Volume: 2,069,045
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.88
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €17.75
• Price Target Upside: 21.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Tenaris demonstrates strong financial health with excellent profitability and low leverage, contributing significantly to its stock score. Despite attractive valuation metrics, the current bearish technical indicators and minor revenue decline pose challenges. However, the company's solid dividend yield offers a compensatory benefit to investors.

Positive Factors

Earnings

Tenaris beat earnings expectations by +7% vs consensus.

Financial Resilience

Tenaris has a cash reserve of about $4 billion, which provides the capability for possible M&A activities while still returning significant amounts of cash to shareholders.

Revenue Growth

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

Input Costs

Higher steel input costs have contributed to higher cash costs per tonne, explaining why we are below consensus.

Oil Price Weakness

Weakened oil prices are expected to lead to a decline in oil and gas activity, causing demand for OCTG to struggle.

US Market Weakness

A 3% fall in rig counts in the US is expected, impacting Tenaris negatively as it derives over 40% of its revenue from the US.

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 makes money primarily through the production and sale of tubular steel products and related services. Its revenue streams are largely driven by the energy sector, particularly oil and gas, where its products are used in drilling, exploration, and production activities. Tenaris provides a range of solutions including casing, tubing, line pipe, and mechanical tubing. The company benefits from long-term relationships and contracts with major oil and gas companies, which provide a steady stream of income. Additionally, Tenaris invests in technological innovation and manufacturing efficiency to maintain competitive pricing and high-quality standards, thereby enhancing its market position and profitability. Strategic acquisitions and partnerships also contribute to expanding its market reach and operational capabilities.

Tenaris Financial Statement Overview

Summary

Tenaris showcases financial robustness with strong profitability, low leverage, and efficient cash flow management. Despite a minor revenue dip, the company's stability and operational efficiency remain exemplary, positioning it well in the fossil fuels industry.

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
	EBIT
2.42B	4.32B	2.96B	1.32B	101.15M
	EBITDA
3.16B	5.29B	3.82B	1.86B	86.55M
	Net Income Common Stockholders
2.04B	3.92B	2.55B	1.10B	-642.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.05B	3.61B	1.53B	715.98M	1.46B
	Total Assets
20.45B	21.08B	17.55B	14.45B	13.72B
	Total Debt
582.32M	203.96M	840.94M	448.22M	876.35M
	Net Debt
-92.93M	-1.43B	-250.59M	130.09M	291.67M
	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: Negative
• Last Price: 14.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 14.66 is above the 20-day moving average (MA) of 14.52, below the 50-day MA of 16.41, and below the 200-day MA of 16.00, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 37.28 is Neutral, neither overbought nor oversold. The STOCH value of 58.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:TEN.

Tenaris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	74 Outperform	€17.58B	9.65	10.53%	4.23%	-14.41%	-44.84%
Sector *	56 Neutral	$6.93B	3.23	-4.86%	5.94%	0.12%	-48.32%