Tenaris SA (TS) AI Stock Analysis

• Market Cap: $18.92B
• Dividend Yield: 4.77%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.78
• Revenue Growth: -12.06%
• EPS Growth: -21.43%
• Country: US
• Employees: 25,874
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.99
• Shares Outstanding: 535,997,440
• 10 Day Avg. Volume: 1,734,108
• 30 Day Avg. Volume: 1,734,189
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: 5.72
• 1Y Price Target: $44.20
• Price Target Upside: 25.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $40.00 ▲(13.12% Upside)

Tenaris SA's overall stock score reflects its strong financial performance and attractive valuation. However, technical indicators suggest bearish momentum, and mixed earnings call sentiment highlights challenges such as declining sales and tariff impacts. The company's robust cash position and strategic project deliveries provide some optimism.

Positive Factors

Strong Cash Position

A robust cash position enhances financial stability, enabling strategic investments and providing a buffer against market volatility.

Strategic Project Deliveries

Delivering on strategic projects strengthens client relationships and market reputation, supporting long-term growth and competitive positioning.

Efficient Cash Generation

Efficient cash generation supports reinvestment in business operations and shareholder returns, enhancing long-term financial health.

Negative Factors

Declining Revenue Growth

Decreasing revenue growth may indicate market saturation or competitive pressures, potentially impacting future profitability and expansion.

Impact of Increased Tariffs

Higher tariffs can increase costs and reduce competitiveness, affecting pricing strategies and profit margins over the long term.

Challenges in Argentina

Operational challenges in key regions like Argentina can limit growth opportunities and strain resources, impacting overall business performance.

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 profitability with robust gross and net profit margins. The balance sheet is healthy with low leverage and high equity ratio, though revenue growth is declining. Cash flows are strong but show a decline in growth rate, which could impact future investments.

Income Statement

Tenaris SA has demonstrated strong income statement performance with robust gross and net profit margins. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 33.8%, indicating effective cost management. The net profit margin stands at 17%, showcasing profitability. However, there is a noticeable decline in revenue growth, from a high in 2023 to a decrease in 2025, which could indicate market saturation or competitive pressures.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.03, underscoring low leverage and financial stability. The equity ratio is strong at 81.3%, pointing to a highly capitalized structure. Return on equity (ROE) is impressive at 12.1%, driven by solid net income, though slightly lower compared to previous years, suggesting potential areas for efficiency improvements.

Cash Flow

Tenaris SA has been generating strong cash flows with a free cash flow to net income ratio of 0.95, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is 1.29, highlighting good quality earnings. However, the free cash flow growth rate has seen a decline, which could impact future investment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.81B	12.52B	14.87B	11.76B	6.52B	5.15B
Gross Profit	3.99B	4.39B	6.47B	4.67B	1.91B	1.06B
EBITDA	3.08B	3.16B	5.19B	3.82B	1.86B	86.55M
Net Income	2.01B	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	1.90B	2.16B	3.78B	769.87M	-125.52M	1.33B
Operating Cash Flow	2.59B	2.87B	4.40B	1.17B	119.08M	1.52B
Investing Cash Flow	-494.05M	-1.40B	-2.69B	-163.56M	267.90M	-2.09B
Financing Cash Flow	-2.37B	-2.40B	-1.13B	-178.34M	-647.96M	-375.32M

Tenaris SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.36
• 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 TS, the sentiment is Negative. The current price of 35.36 is below the 20-day moving average (MA) of 35.41, below the 50-day MA of 35.97, and below the 200-day MA of 35.79, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 30.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TS.

Tenaris SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	81 Outperform	16.25B	18.73	28.83%	0.50%	12.15%	91.88%
BKR	78 Outperform	49.17B	16.31	17.22%	1.80%	2.13%	54.69%
HAL	77 Outperform	20.84B	11.43	17.72%	2.76%	-4.08%	-29.26%
TS	74 Outperform	$18.92B	9.40	12.06%	4.77%	-12.06%	-21.43%
SLB	71 Outperform	51.69B	11.86	20.16%	3.27%	0.94%	-4.63%
NOV	70 Outperform	4.89B	10.82	7.18%	3.82%	-1.21%	-54.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Tenaris SA Corporate Events

Tenaris Completes First Tranche of Share Buyback Program

Tenaris S.A. announced the completion of the first tranche of its USD 1.2 billion Share Buyback Program, initiated on June 6, 2025. From August 4 to August 8, 2025, the company repurchased 3,813,885 ordinary shares for approximately USD 67.86 million. As of August 8, 2025, Tenaris held 26,534,450 ordinary shares in treasury, representing 2.48% of its total issued share capital, with plans to cancel these shares in due course.

Tenaris Completes First Tranche of Share Buyback Program

Tenaris S.A. announced the completion of the first tranche of its USD 1.2 billion Share Buyback Program, which was initially announced on June 6, 2025. Between July 28 and August 1, 2025, the company repurchased 1,692,262 ordinary shares for a total of €26,477,016 (approximately USD 30,459,724). As of August 1, 2025, Tenaris held 22,720,565 ordinary shares in treasury, representing 2.12% of its total issued share capital. The company plans to cancel these treasury shares in due course, potentially impacting its share value and market positioning.

Tenaris S.A. Releases 2025 Half-Year Financial Report

On July 30, 2025, Tenaris S.A. released its half-year report for 2025, detailing its financial performance and management’s insights for the first half of the year. The report, prepared in compliance with Luxembourg’s transparency laws, highlights the company’s adherence to International Financial Reporting Standards and includes unaudited consolidated financial statements. The report also discusses the company’s strategic focus on adapting to energy transitions and potential growth through acquisitions and joint ventures. This release provides stakeholders with a comprehensive view of Tenaris’s current financial health and strategic direction, emphasizing its commitment to maintaining a robust market position amid evolving industry dynamics.

Tenaris S.A. Discusses Q2 2025 Results and Market Outlook

On July 31, 2025, Tenaris S.A. held a conference call with investors and analysts to discuss its second quarter results, market conditions, and future outlook. The discussion, led by CEO Paolo Rocca and senior management, highlighted the company’s performance and strategic positioning within the steel pipe and oil and gas industries, providing insights into market trends and economic conditions impacting its operations.

Tenaris S.A. Reports Decrease in Sales for First Half of 2025

Tenaris S.A. has released its consolidated condensed interim financial statements for the six-month period ending June 30, 2025. The report highlights a decrease in net sales compared to the previous year, with a total of $6,007,884 thousand in 2025, down from $6,763,221 thousand in 2024. Despite the decline in sales, the company achieved a net income of $1,059,570 thousand for the period, indicating a slight decrease from the $1,098,451 thousand reported in the same period last year. These financial results reflect the company’s ongoing challenges in maintaining sales growth amidst fluctuating market conditions.

Tenaris Reports Q2 2025 Results with Increased Sales and Cash Flow

Tenaris S.A. reported its financial results for the second quarter of 2025, showing a 6% increase in net sales compared to the first quarter, driven by higher North American OCTG prices. Despite a rise in sales costs, EBITDA and net income improved, maintaining stable margins. The company generated $538 million in free cash flow, which was used for dividends and share buybacks, resulting in a net cash position of $3.7 billion as of June 30, 2025. Looking ahead, Tenaris anticipates a moderate decline in sales for the second half of the year due to reduced drilling activity and increased tariff costs. The company expects U.S. OCTG imports to decrease and prices to rise following recent tariff hikes on steel imports.

Tenaris Completes First Tranche of Share Buyback Program

Tenaris S.A. announced the completion of the first tranche of its USD 1.2 billion Share Buyback Program, which was initially announced on June 6, 2025. From June 30 to July 4, 2025, the company repurchased 1,702,505 ordinary shares for a total of €27,200,630, equivalent to USD 31,975,944. As of July 4, 2025, Tenaris held 15,396,773 ordinary shares in treasury, representing 1.44% of its total issued share capital. The company plans to cancel these treasury shares in due course, which may impact its share capital structure and market positioning.