Tenaris (TEN) AI Stock Analysis

• Market Cap: €18.60B
• Dividend Yield: 4.28%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.89
• 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: €18.38
• Price Target Upside: 6.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €19.50 ▲(13.37% Upside)

Tenaris's strong financial performance and attractive valuation are key strengths, contributing significantly to the overall score. However, technical indicators suggest caution due to overbought conditions, which could lead to short-term volatility. The absence of recent earnings call data and corporate events means these factors do not influence the score.

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 is a global manufacturer and supplier of steel pipes and related services for the energy industry, particularly oil and gas. Operating across multiple sectors, including energy, industrial, and construction, Tenaris specializes in producing seamless and welded steel pipes, as well as offering a range of value-added services such as heat treatment, coating, and logistics. The company serves a diverse customer base, including upstream, midstream, and downstream sectors, with an emphasis on providing innovative solutions to meet the demands of the energy market.

How the Company Makes Money

Tenaris generates revenue primarily through the sale of steel pipes and related services to the oil and gas industry. Key revenue streams include the production of seamless and welded tubular products, which are essential for drilling and transporting oil and gas. Additionally, Tenaris provides value-added services such as coating and heat treatment, which enhance the performance and longevity of their products. The company benefits from strategic partnerships with major oil and gas companies, which often lead to long-term contracts and stable revenue streams. Factors contributing to its earnings include fluctuating oil prices, demand from the energy sector, and the company's ability to innovate and improve production efficiency.

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: Positive
• Last Price: 17.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 17.2 is below the 20-day moving average (MA) of 17.21, above the 50-day MA of 15.92, and above the 200-day MA of 15.59, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 26.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	75 Outperform	€18.60B	10.27	12.14%	4.28%	-11.36%	-20.23%
SRG	72 Outperform	€18.28B	13.09	17.62%	5.19%	-8.04%	30.49%
TRN	72 Outperform	€18.18B	16.44	19.67%	4.38%	10.18%	8.43%
SPM	66 Neutral	€4.45B	13.47	13.05%	7.24%	18.52%	29.29%
ENI	63 Neutral	€48.42B	17.55	5.51%	6.40%	-5.46%	13.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%