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Tenaris SA (IT:TEN)
:TEN
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Tenaris (TEN) AI Stock Analysis

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IT:TEN

Tenaris

(LSE:TEN)

Rating:74Outperform
Price Target:
€17.50
▲(12.90% Upside)
Tenaris's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust balance sheet and profitability metrics are offset by recent declines in revenue and free cash flow growth. Technical indicators suggest a neutral to slightly negative short-term outlook, but the low P/E ratio and high dividend yield provide a compelling investment case.
Positive Factors
Drilling activity recovery
PEMEX has secured financing and launched a restructuring process, suggesting a gradual recovery in drilling activity.
OCTG pricing
Both Tenaris and Vallourec expect OCTG prices to bottom out and gradually increase in the coming quarters.
Offshore activity
Tenaris anticipates a firm pick-up in offshore activity, supported by several potential offshore FIDs in regions like West Africa, East Mediterranean, LATAM, and Asia.
Negative Factors
Client sales
Sales to key clients like Aramco are expected to be weaker, impacting international growth assumptions negatively.
North American demand
Volumes set to decrease slightly due to lower offshore line pipe shipments, low fracking activity in the Vaca Muerta, and lower drilling activity in North America.
Tariffs impact
The expansion of US section 232 tariffs from 25% to 50% on steel presents risks to the North American OCTG market, potentially affecting Tenaris.

Tenaris (TEN) vs. iShares MSCI Italy ETF (EWI)

Tenaris Business Overview & Revenue Model

Company DescriptionTenaris 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 MoneyTenaris 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
78
Positive
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
85
Very Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.77B12.52B14.87B11.76B6.52B5.15B
Gross Profit3.98B4.39B6.47B4.67B1.91B1.06B
EBITDA2.98B3.16B5.29B3.82B1.86B86.55M
Net Income2.00B2.04B3.92B2.55B1.10B-642.42M
Balance Sheet
Total Assets20.41B20.45B21.08B17.55B14.45B13.72B
Cash, Cash Equivalents and Short-Term Investments3.05B3.05B3.61B1.53B715.98M1.46B
Total Debt472.37M582.32M203.96M840.94M448.22M876.35M
Total Liabilities3.61B3.64B4.05B3.52B2.34B2.27B
Stockholders Equity16.58B16.59B16.84B13.91B11.96B11.26B
Cash Flow
Free Cash Flow1.84B2.16B3.78B769.87M-125.52M1.33B
Operating Cash Flow2.54B2.87B4.40B1.17B119.08M1.52B
Investing Cash Flow-449.56M-1.40B-2.69B-163.56M267.90M-2.09B
Financing Cash Flow-2.36B-2.40B-1.13B-178.34M-647.96M-375.32M

Tenaris Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.50
Price Trends
50DMA
15.81
Negative
100DMA
15.23
Positive
200DMA
16.39
Negative
Market Momentum
MACD
-0.09
Negative
RSI
47.63
Neutral
STOCH
64.42
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 15.5 is above the 20-day moving average (MA) of 15.45, below the 50-day MA of 15.81, and below the 200-day MA of 16.39, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 64.42 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€16.61B9.1512.40%4.62%-12.82%-21.98%
61
Neutral
$10.31B6.290.76%2.95%3.36%-36.41%
€46.23B18.865.02%
€17.49B12.5117.62%
€17.16B15.5419.67%
€4.85B14.5413.05%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:TEN
Tenaris
15.55
2.99
23.83%
GB:0N9S
ENI S.p.A.
15.18
1.41
10.24%
GB:0NQP
SNAM S.p.A.
5.25
1.08
25.90%
GB:0LBM
Terna S.p.A.
8.67
1.27
17.16%
DE:SPEA
Saipem SpA
2.47
0.61
32.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 27, 2025