Tenaris SA (TS) AI Stock Analysis

• Market Cap: $19.34B
• Dividend Yield: 6.22%
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.77
• Revenue Growth: -15.28%
• EPS Growth: -45.42%
• Country: US
• Employees: 25,874
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.94
• Shares Outstanding: 535,997,440
• 10 Day Avg. Volume: 1,525,467
• 30 Day Avg. Volume: 1,579,574
• PEG Ratio: 0.12
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.92
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 10.11
• Enterprise Value/Ebitda: 3.06
• 1Y Price Target: $43.20
• Price Target Upside: 20.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 80 Outperform
• Price Target: $38.00 ▲(5.58%Upside)

Tenaris SA's overall score of 80 reflects its strong financial health, efficient operations, and attractive valuation. The company's robust cash flow and balance sheet provide resilience against industry challenges. Although technical indicators suggest mixed momentum, the company's solid financial position and positive aspects from the earnings call contribute to a favorable outlook.

Positive Factors

Customer Concentration

Customer concentration among larger U.S. O&G producers should help insulate volume from oil price fluctuations.

Financial Performance

Higher than modeled cash on the balance sheet drives the DCF based price target from $41 to $43.

Share Repurchase Plan

Cash generation should remain strong, and a similar share repurchase plan is expected to be announced.

Negative Factors

Market Uncertainty

The prospect of new tariffs on U.S. steel and steel product imports creates a lot of uncertainty as TS does import some pipe and steel materials.

Market Visibility

Mexico remains depressed, and it seems TS has little visibility and their outlook does not reflect.

Pricing Risk

The pace of benchmark OCTG pricing has slowed which may present some risk to margins.

Tenaris SA 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 SA generates revenue primarily through the manufacturing and sale of steel pipe products, which are integral to the oil and gas industry. The company's revenue streams are largely driven by the demand for its seamless and welded tubes used in drilling, completion, and production activities. Additionally, Tenaris benefits from long-term contracts and strategic partnerships with major oil and gas companies, which provide a stable and recurring source of income. The company also offers related services such as pipe coating, bending, and logistics, which enhance its value proposition and contribute to its earnings. Factors such as global oil prices, exploration activities, and infrastructure investments significantly influence Tenaris's revenue, as they directly impact the demand for its products and services.

Tenaris SA Financial Statement Overview

Summary

Tenaris SA demonstrates strong financial performance with robust profitability, a solid balance sheet with low leverage, and healthy cash flows. The recent decline in revenue growth is a concern, but strong margins and financial ratios indicate efficient operations and a low-risk capital structure.

Income Statement

The company's income statement shows strong profitability with a consistent gross profit margin and net profit margin. While there is a noticeable decline in revenue from 2023 to TTM, the company has maintained solid EBIT and EBITDA margins, indicating efficient cost management. The revenue growth has been volatile, with significant growth from 2021 to 2023, but a decline in the TTM period.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, showcasing low leverage and financial stability. The company has a high equity ratio, indicating a strong capital structure. Return on Equity (ROE) is impressive, reflecting efficient use of shareholder funds to generate profits. The company’s balance sheet suggests strong financial health and low-risk profile.

Cash Flow

The cash flow statement reveals strong operating cash flows relative to net income, indicating high quality of earnings. Free cash flow growth is positive, although it has slightly decreased in the TTM period compared to 2023. The company exhibits a solid free cash flow to net income ratio, ensuring it can cover operational needs and fund investments.

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
2.93B	3.16B	5.19B	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
3.35B	3.05B	3.61B	1.53B	715.98M	1.46B
	Total Assets
20.62B	20.45B	21.08B	17.55B	14.45B	13.72B
	Total Debt
497.83M	582.32M	203.96M	840.94M	448.22M	876.35M
	Net Debt
-272.38M	-92.93M	-1.43B	-250.59M	130.09M	291.67M
	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 SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TS, the sentiment is Positive. The current price of 35.99 is above the 20-day moving average (MA) of 34.09, above the 50-day MA of 33.02, and above the 200-day MA of 33.97, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 66.01 is Neutral, neither overbought nor oversold. The STOCH value of 92.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TS.

Tenaris SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	82 Outperform	$14.37B	18.09	27.24%	0.58%	14.26%	294.37%
TS	80 Outperform	$19.34B	11.06	10.45%	6.22%	-15.28%	-45.42%
BKR	74 Outperform	$38.67B	13.33	18.04%	2.38%	6.22%	62.58%
NOV	73 Outperform	$5.02B	8.92	9.29%	6.28%	0.54%	-39.88%
HLX	71 Outperform	$1.07B	12.88	5.64%	―	0.34%	―
MRC	68 Neutral	$1.14B	41.18	8.29%	―	-9.84%	-111.71%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%