Tenaris (TEN) AI Stock Analysis

• Market Cap: €16.56B
• Dividend Yield: 6.29%
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.84
• Revenue Growth: -14.41%
• EPS Growth: -44.84%
• Country: IT
• Employees: 25,874
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.42
• Shares Outstanding: 1,071,994,900
• 10 Day Avg. Volume: 3,142,457
• 30 Day Avg. Volume: 2,685,814
• PEG Ratio: 0.06
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.73
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 1.53
• 1Y Price Target: €18.40
• Price Target Upside: 18.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 80 Outperform
• Price Target: €17.50 ▲(12.54%Upside)

Tenaris receives a strong overall stock score primarily due to its robust financial performance and attractive valuation. The company's financial stability and efficient cash flow management contribute significantly to its high score. Technical analysis indicates a stable market position, further supporting its investment potential.

Positive Factors

Earnings Performance

Tenaris beat earnings expectations by 7% versus consensus, indicating strong financial performance.

Revenue Growth

Resilience in volumes in the US is driving revenue estimates to be 2% ahead of consensus.

Negative Factors

Demand Decline

EBITDA estimates for Tenaris have been cut due to expected declines in OCTG demand and shipments.

Pricing Pressure

OCTG pricing in the US is weakening for the first time in 8 months, which could negatively affect margins.

Revenue and EBITDA Forecast Reduction

The forecast for Tenaris's revenue and EBITDA for FY25 and FY26 has been reduced, with revenue cut by 11% and EBITDA by 3% for FY25.

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 demonstrates strong financial performance with high profitability, low leverage, and efficient cash flow management. The company's financial stability is notable despite a slight revenue decline.

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	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
EBITDA	2.81B	3.16B	5.29B	3.82B	1.86B	86.55M
Net Income	1.81B	2.04B	3.92B	2.55B	1.10B	-642.42M
Balance Sheet
Total Assets	20.62B	20.45B	21.08B	17.55B	14.45B	13.72B
Cash, Cash Equivalents and Short-Term Investments	3.35B	3.05B	3.61B	1.53B	715.98M	1.46B
Total Debt	497.83M	582.32M	203.96M	840.94M	448.22M	876.35M
Total Liabilities	3.22B	3.64B	4.05B	3.52B	2.34B	2.27B
Stockholders Equity	17.16B	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

• Technical Analysis Sentiment: Neutral
• Last Price: 15.55
• 50DMA: Positive
• 100DMA: Negative
• 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 15.55 is above the 20-day moving average (MA) of 15.48, above the 50-day MA of 14.85, and below the 200-day MA of 15.92, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 38.48 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	80 Outperform	€16.56B	10.11	10.53%	6.29%	-14.41%	-44.84%
Sector *	58 Neutral	HK$84.65B	3.50	-2.08%	5.84%	-4.74%	-39.87%
0N9S		€41.73B	16.46	4.83%	7.28%	―	―
0NQP		€16.92B	13.44	16.18%	6.91%	―	―
0LBM		€17.22B	16.20	19.05%	6.46%	―	―
SPEA		€4.52B	14.82	12.44%	6.44%	―	―