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Tenaris (IT:TEN)
:TEN
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Tenaris
(LSE:TEN)
Rating:78Outperform
Price Target:
€17.00
▲(11.84%Upside)
Positive Factors
Earnings
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%.
Revenue Forecast
Resilience in volumes in the US is driving revenue estimates to be 2% ahead of consensus.
Negative Factors
Demand
Weakened oil prices are expected to lead to a decline in oil and gas activity, causing demand for OCTG to struggle.
Price Objective
No further room for upside in the stock is seen as Tenaris is trading above the price objective.
US Market
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 (TEN) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€16.31B
Dividend Yield4.95%
Average Volume (3M)2.01M
Price to Earnings (P/E)9.9
Beta (1Y)0.85
Revenue Growth-14.41%
EPS Growth-44.84%
CountryIT
Employees25,874
SectorEnergy
Sector Strength43
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.42
Shares Outstanding1,071,994,900
10 Day Avg. Volume2,797,235
30 Day Avg. Volume2,009,198
Financial Highlights & Ratios
PEG Ratio-1.07
Price to Book (P/B)1.07
Price to Sales (P/S)0.00
P/FCF Ratio8.87
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit4.47
Enterprise Value/Ebitda1.37
Forecast
1Y Price Target
€18.20Price Target Upside19.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Tenaris Business Overview & Revenue Model
Company DescriptionTenaris 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 MoneyTenaris 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.85
Very Positive
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.90
Very Positive
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.88
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 12.00B | 12.52B | 14.87B | 11.76B | 6.52B | 5.15B | Gross Profit |
| 4.08B | 4.39B | 6.47B | 4.67B | 1.91B | 1.06B | EBIT |
| 2.16B | 2.42B | 4.32B | 2.96B | 1.32B | 101.15M | EBITDA |
| 2.81B | 3.16B | 5.29B | 3.82B | 1.86B | 86.55M | Net Income Common Stockholders |
| 1.81B | 2.04B | 3.92B | 2.55B | 1.10B | -642.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.57B | 3.05B | 3.61B | 1.53B | 715.98M | 1.46B | Total Assets |
| 21.55B | 20.45B | 21.08B | 17.55B | 14.45B | 13.72B | Total Debt |
| 775.58M | 582.32M | 203.96M | 840.94M | 448.22M | 876.35M | Net Debt |
| -547.77M | -92.93M | -1.43B | -250.59M | 130.09M | 291.67M | Total Liabilities |
| 3.94B | 3.64B | 4.05B | 3.52B | 2.34B | 2.27B | Stockholders Equity |
| 17.41B | 16.59B | 16.84B | 13.91B | 11.96B | 11.26B |
| Cash Flow | Free Cash Flow | ||||
| 2.09B | 2.16B | 3.78B | 769.87M | -125.52M | 1.33B | Operating Cash Flow |
| 2.80B | 2.87B | 4.40B | 1.17B | 119.08M | 1.52B | Investing Cash Flow |
| -859.42M | -1.40B | -2.69B | -163.56M | 267.90M | -2.09B | Financing Cash Flow |
| -2.48B | -2.40B | -1.13B | -178.34M | -647.96M | -375.32M |
Tenaris Technical Analysis
Positive
15.20
Price Trends
14.94
Positive
16.28
Negative
15.68
Negative
Market Momentum
0.11
Negative
56.04
Neutral
79.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TEN, the sentiment is Positive. The current price of 15.2 is above the 20-day moving average (MA) of 14.85, above the 50-day MA of 14.94, and below the 200-day MA of 15.68, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 79.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:TEN.
Tenaris Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | €16.31B | 9.95 | 10.53% | 4.95% | -14.41% | -44.84% | |
57 Neutral | $7.16B | 3.10 | -4.49% | 5.66% | 0.82% | -49.15% | |
| €40.11B | 15.83 | 4.83% | 7.59% | ― | ― | ||
| €17.60B | 13.82 | 16.18% | 5.43% | ― | ― | ||
| €17.96B | 16.76 | 19.05% | 3.85% | ― | ― | ||
| €4.53B | 14.85 | 12.44% | 7.54% | ― | ― |
* Energy Sector Average
Performance Comparison
IT:TEN
Tenaris
15.21
1.00
7.02%
GB:0N9S
ENI S.p.A.
13.21
0.19
1.46%
GB:0NQP
SNAM S.p.A.
5.19
1.08
26.28%
GB:0LBM
Terna S.p.A.
8.87
1.49
20.19%
DE:SPEA
Saipem SpA
2.31
0.31
15.50%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.