Tenaris (TEN) AI Stock Analysis

• Market Cap: €16.50B
• Dividend Yield: 4.68%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.83
• Revenue Growth: -12.82%
• EPS Growth: -21.98%
• Country: IT
• Employees: 25,874
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.43
• Shares Outstanding: 1,071,994,900
• 10 Day Avg. Volume: 1,808,650
• 30 Day Avg. Volume: 1,802,406
• 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: €18.50
• Price Target Upside: 20.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: €17.00 ▲(11.11% Upside)

Tenaris has a strong financial foundation and attractive valuation, which are significant strengths. However, the bearish technical indicators and recent declines in revenue and cash flow growth present risks. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Estimates

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

Negative Factors

Earnings

EBITDA estimates for Tenaris have been cut by 8/14% due to expected declines in OCTG demand and shipments.

International Sales

Sales to key clients like Aramco are expected to be weaker, impacting international growth assumptions negatively.

Market Uncertainty

The recommendation for Tenaris remains 'Underperform' due to uncertainties and risks in the market.

Tenaris Business Overview & Revenue Model

Company Description

Tenaris S.A. is a leading global manufacturer and supplier of steel pipes and related services primarily for the energy industry. Headquartered in Luxembourg, the company operates in sectors including oil and gas, energy, and mechanical industries, providing a wide range of products such as seamless and welded steel tubular products, premium connections, and pipe accessories. Tenaris serves a diverse client base across the Americas, Europe, Asia, and the Middle East, supporting operations in oil exploration and production, transportation, and processing.

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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.77B	12.52B	14.87B	11.76B	6.52B	5.15B
Gross Profit	3.98B	4.39B	6.47B	4.67B	1.91B	1.06B
EBITDA	2.98B	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	20.41B	20.45B	21.08B	17.55B	14.45B	13.72B
Cash, Cash Equivalents and Short-Term Investments	3.05B	3.05B	3.61B	1.53B	715.98M	1.46B
Total Debt	472.37M	582.32M	203.96M	840.94M	448.22M	876.35M
Total Liabilities	3.61B	3.64B	4.05B	3.52B	2.34B	2.27B
Stockholders Equity	16.58B	16.59B	16.84B	13.91B	11.96B	11.26B
Cash Flow
Free Cash Flow	1.84B	2.16B	3.78B	769.87M	-125.52M	1.33B
Operating Cash Flow	2.54B	2.87B	4.40B	1.17B	119.08M	1.52B
Investing Cash Flow	-449.56M	-1.40B	-2.69B	-163.56M	267.90M	-2.09B
Financing Cash Flow	-2.36B	-2.40B	-1.13B	-178.34M	-647.96M	-375.32M

Tenaris Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.30
• 50DMA: Negative
• 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 Negative. The current price of 15.3 is below the 20-day moving average (MA) of 15.93, below the 50-day MA of 15.81, and below the 200-day MA of 16.33, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 26.63 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
SPM	77 Outperform	€4.41B	13.35	13.05%	7.51%	18.52%	29.29%
SRG	75 Outperform	€17.32B	12.40	17.62%	5.68%	-8.04%	30.49%
TRN	74 Outperform	€17.12B	15.47	19.67%	4.66%	10.18%	8.43%
TEN	71 Outperform	€16.50B	9.09	12.40%	4.68%	-12.82%	-21.98%
ENI	71 Outperform	€45.33B	18.50	5.02%	6.71%	-6.68%	-33.67%
Sector *	70 Neutral	€5.48B	8.43	10.45%	3.03%	-0.05%	59.46%