Tenaris SA (TS) AI Stock Analysis

• Market Cap: $22.12B
• Dividend Yield: 4.16%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.74
• Revenue Growth: -9.76%
• EPS Growth: -18.94%
• Country: US
• Employees: 25,874
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.85
• Shares Outstanding: 535,997,440
• 10 Day Avg. Volume: 1,652,048
• 30 Day Avg. Volume: 1,466,455
• PEG Ratio: 1.20
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 9.83
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 4.09
• Enterprise Value/Ebitda: 5.29
• 1Y Price Target: $42.85
• Price Target Upside: 4.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 3.55
• Revenue Forecast (FY): $11.89B

• Rating: 75 Outperform
• Price Target: $45.00 ▲(9.86% Upside)

Tenaris SA's strong financial performance and robust balance sheet are the most significant factors contributing to its score. The company's valuation is attractive, with a reasonable P/E ratio and a solid dividend yield. However, technical indicators suggest the stock may be overbought in the short term. The earnings call provided a mixed outlook, with strong performance tempered by challenges such as tariffs and working capital issues.

Positive Factors

Strong Financial Health

Tenaris's strong financial health, characterized by low leverage and robust profitability, supports long-term stability and growth potential.

Operational Efficiency

Efficient operations, reflected in strong profit margins, enable Tenaris to maintain competitiveness and invest in growth opportunities.

Renewable Energy Initiatives

Investments in renewable energy enhance sustainability and reduce operational costs, aligning with global energy transition trends.

Negative Factors

Impact of Tariffs

Tariff-related cost increases can pressure margins and profitability, potentially affecting Tenaris's competitive positioning.

Inventory and Import Challenges

Excess inventory and import challenges can lead to price pressures, impacting revenue and cash flow sustainability.

Working Capital Challenges

Working capital issues, such as increased receivables, can strain liquidity and limit financial flexibility for future investments.

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 generates revenue primarily through the sale of its steel pipe products to customers in the oil and gas industry. The company's revenue model is built on selling seamless and welded pipes, along with value-added services such as technical support and product customization. Key revenue streams include sales to exploration and production companies and to service companies that support these operations. Additionally, Tenaris benefits from long-term contracts with major oil companies, which provide stability and predictability in revenue. The company also engages in partnerships and alliances with other industry players to enhance its market reach and operational efficiency, contributing positively to its earnings.

Tenaris SA Financial Statement Overview

Summary

Tenaris SA exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is robust, characterized by low leverage and strong equity. While cash flow generation has seen some decline, the company's overall financial position remains solid, supported by efficient operations and prudent financial management.

Income Statement

Tenaris SA has demonstrated strong revenue growth with a 42% increase in the TTM period. The company maintains healthy profitability metrics, with a gross profit margin of 33.8% and a net profit margin of 17%. Although there was a slight decline in revenue in the previous annual period, the overall trajectory remains positive. The EBIT and EBITDA margins are robust, indicating efficient operational management.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.028, reflecting minimal leverage and financial risk. The return on equity is healthy at 11.9%, showcasing effective utilization of shareholder funds. The equity ratio stands at a strong 83.3%, indicating a stable financial structure with significant equity backing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, down by 12.6% in the TTM period, which could be a concern if the trend continues. However, the operating cash flow to net income ratio is nearly 1, suggesting adequate cash generation relative to earnings. The free cash flow to net income ratio of 0.73 indicates a reasonable conversion of earnings into cash.

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	3.11B	3.16B	5.29B	3.82B	1.86B	86.55M
Net Income	2.00B	2.04B	3.92B	2.55B	1.10B	-634.42M
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	919.85M
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	1.66B	2.16B	3.78B	769.87M	-125.52M	1.33B
Operating Cash Flow	2.35B	2.87B	4.40B	1.17B	119.08M	1.52B
Investing Cash Flow	-48.70M	-1.40B	-2.69B	-163.56M	267.90M	-2.09B
Financing Cash Flow	-2.41B	-2.40B	-1.13B	-178.34M	-647.96M	-375.32M

Tenaris SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 40.96 is above the 20-day moving average (MA) of 38.52, above the 50-day MA of 36.62, and above the 200-day MA of 35.83, indicating a bullish trend. The MACD of 1.46 indicates Negative momentum. The RSI at 69.15 is Neutral, neither overbought nor oversold. The STOCH value of 71.25 is Neutral, 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	80 Outperform	$17.36B	19.24	28.72%	0.53%	11.73%	45.70%
BKR	78 Outperform	$46.90B	16.37	16.83%	1.94%	1.51%	30.09%
TS	75 Outperform	$22.12B	10.98	11.69%	4.16%	-9.76%	-18.94%
SLB	75 Outperform	$53.89B	13.94	15.46%	3.11%	-2.13%	-16.76%
HAL	72 Outperform	$22.67B	17.83	12.77%	2.52%	-4.06%	-47.41%
NOV	72 Outperform	$5.62B	15.38	5.93%	3.34%	-1.43%	-63.13%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Tenaris SA Corporate Events

Tenaris Launches Second Tranche of Share Buyback Program

Tenaris S.A. announced the commencement of a USD 600 million second tranche of its USD 1.2 billion share buyback program, initially announced on May 27, 2025. This tranche, executed through a non-discretionary agreement with a primary financial institution, will begin on November 3, 2025, and conclude by April 30, 2026. The buyback will comply with applicable regulations and the purchased shares will eventually be cancelled. This move reflects Tenaris’s strategic financial management and may impact its market positioning and shareholder value.

Tenaris S.A. Discusses Third Quarter 2025 Results and Market Outlook

On October 30, 2025, Tenaris S.A. held a conference call to discuss its third-quarter results, market conditions, and future outlook. The call, led by CEO Paolo Rocca and senior management, provided insights into the company’s performance and strategic direction, highlighting its positioning in the steel pipe and oil and gas industries.

Tenaris S.A. Reports Decline in Nine-Month Sales for 2025

Tenaris S.A. has released its consolidated condensed interim financial statements for the nine-month period ending September 30, 2025. The report highlights a decrease in net sales compared to the previous year, with sales figures dropping from $9,678,708,000 in 2024 to $8,986,024,000 in 2025. Despite the decline in sales, the company managed to maintain a stable gross profit margin, although operating income and net income showed a slight decrease. These financial results reflect the challenging market conditions and the impact on Tenaris’s operations, potentially influencing investor confidence and stakeholder decisions.

Tenaris Reports Stable Q3 2025 Results Amid Tariff Challenges

Tenaris S.A. announced its third-quarter results for 2025, showing a slight decline in net sales compared to the previous quarter but a year-on-year increase. The company’s operating income rose by 2% sequentially and 11% year-on-year, while net income saw a decrease. Despite challenges such as increased tariffs and fluctuating oil prices, Tenaris maintained stable sales in North America and completed shipments ahead of schedule in the Middle East. The company also announced an interim dividend payment, reflecting its commitment to shareholder returns. Looking ahead, Tenaris expects sales to remain stable in the fourth quarter, though margins may be impacted by increased tariff costs.

Tenaris Completes Share Buyback as Part of USD1.2 Billion Program

Tenaris S.A. announced the completion of a share buyback as part of its USD1.2 billion program, repurchasing 658,084 ordinary shares for approximately USD11.79 million between September 29 and September 30, 2025. This move is part of the company’s strategy to manage its capital structure, and the repurchased shares will be held in treasury with plans for cancellation, potentially impacting shareholder value and market perception.

Tenaris Completes First Tranche of Share Buyback Program

Tenaris S.A. has completed the first USD600 million tranche of its USD1.2 billion Share Buyback Program, which was announced on June 6, 2025. This tranche, running from June 9, 2025, to September 30, 2025, involved the purchase of 33,059,955 ordinary shares, representing 3.08% of its total issued share capital, for approximately USD600 million. The shares are currently held in treasury, with plans for cancellation in due course. This move reflects Tenaris’s strategic financial management, potentially impacting its market position and shareholder value.

Tenaris Shareholders Adjust Holdings Amid Buyback Program

On September 19, 2025, Tenaris S.A. announced that its controlling shareholders, San Faustin S.A. and Techint Holdings S.à r.l., filed an amendment to Schedule 13D with the SEC. This filing was in response to Tenaris’s ongoing share buyback program, which led to a passive increase in San Faustin’s beneficial ownership. To manage their portfolio, San Faustin’s board authorized Techint Holdings to sell some of its Tenaris shares, ensuring their ownership does not drop below 67%. The timing and amount of these sales will depend on market conditions, with no assurance of completion. This move highlights Tenaris’s strategic financial management amid its share repurchase efforts.

Tenaris Completes First Tranche of Share Buyback Program

Tenaris S.A. announced the completion of the first tranche of its USD1.2 billion Share Buyback Program, initially announced on June 6, 2025. Between September 15 and September 19, 2025, the company repurchased 179,100 ordinary shares for approximately USD3.2 million. As of September 19, 2025, Tenaris holds 29,678,298 ordinary shares in treasury, which is 2.77% of its total issued share capital. The company plans to cancel these treasury shares in due course, which could potentially impact its share value and market perception.