Education
About Us
Working with TipRanks
Follow Us
Tenaris SA (TS)
NYSE:TS
Top Page
Tenaris SA
(NYSE:TS)
75Outperform
Positive Factors
Customer Base
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.
Negative Factors
Pricing Risk
The pace of benchmark OCTG pricing has slowed which may present some risk to margins.
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.
Tenaris SA (TS) vs. S&P 500 (SPY)
Market Cap
$19.67B
Dividend Yield3.99%
Average Volume (3M)1.86M
Price to Earnings (P/E)9.3
Beta (1Y)0.81
Revenue Growth-15.77%
EPS Growth-45.74%
CountryUS
Employees25,874
SectorEnergy
Sector Strength47
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)3.60
Shares Outstanding583,944,400
10 Day Avg. Volume1,837,255
30 Day Avg. Volume1,861,361
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.76
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.42
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$43.80Price Target Upside30.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Tenaris SA Business Overview & Revenue Model
Company DescriptionTenaris 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 MoneyTenaris SA generates revenue primarily through the production and sale of steel pipes and tubular products. The company's key revenue streams include the sale of seamless and welded pipes used in the oil and gas industry's exploration and production activities, which constitute a significant portion of its income. Tenaris also provides value-added services such as technical consulting, pipe management, logistics, and supply chain services, which contribute to its earnings. Additionally, the company benefits from strategic partnerships and long-term agreements with major oil and gas companies, which ensure a steady demand for its products and services. The company’s global presence and its ability to provide tailored solutions to meet customer-specific needs further enhance its revenue generation capabilities.
Tenaris SA Financial Statement Overview
Summary
Tenaris SA exhibits a well-rounded financial profile with strong profitability margins and a robust balance sheet characterized by low leverage and high equity. While revenue and operating cash flow have declined, the company maintains solid profitability and cash flow generation, ensuring financial resilience.Income Statement
Tenaris SA has demonstrated strong profitability with a notable Net Profit Margin of 16.26% in 2024, indicating efficient cost management. However, there was a decrease in revenue from $14.87 billion in 2023 to $12.52 billion in 2024, resulting in a negative revenue growth rate of -15.87%. The EBIT and EBITDA margins are healthy at 19.31% and 25.22% respectively, supporting profitability despite the dip in revenue.75
Positive
Balance Sheet
The company maintains a strong balance sheet with an excellent Debt-to-Equity Ratio of 0.04, showcasing low leverage. Return on Equity (ROE) is impressive at 12.27%, reflecting effective use of equity capital. The Equity Ratio stands at a robust 81.14%, highlighting significant equity financing and low reliance on debt, which adds to financial stability.82
Very Positive
Cash Flow
Tenaris shows a solid cash flow position with a Free Cash Flow of $2.16 billion in 2024. Although there is a decline in Operating Cash Flow from $4.39 billion in 2023 to $2.87 billion in 2024, the Free Cash Flow to Net Income Ratio remains favorable at 1.06, indicating good cash generation relative to net income. The cash flow stability supports ongoing financial health despite decreased operating cash flow.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 12.52B | 14.87B | 11.76B | 6.52B | 5.15B | Gross Profit |
| 4.39B | 6.47B | 4.67B | 1.91B | 1.06B | EBIT |
| 2.42B | 4.32B | 2.96B | 1.32B | 101.15M | EBITDA |
| 3.16B | 5.19B | 3.82B | 1.86B | 86.55M | Net Income Common Stockholders |
| 2.04B | 3.92B | 2.55B | 1.10B | -642.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.05B | 3.61B | 1.53B | 715.98M | 1.46B | Total Assets |
| 20.45B | 21.08B | 17.55B | 14.45B | 13.72B | Total Debt |
| 582.32M | 203.96M | 840.94M | 448.22M | 876.35M | Net Debt |
| -92.93M | -1.43B | -250.59M | 130.09M | 291.67M | Total Liabilities |
| 3.64B | 4.05B | 3.52B | 2.34B | 2.27B | Stockholders Equity |
| 16.59B | 16.84B | 13.91B | 11.96B | 11.26B |
| Cash Flow | Free Cash Flow | |||
| 2.16B | 3.78B | 769.87M | -125.52M | 1.33B | Operating Cash Flow |
| 2.87B | 4.40B | 1.17B | 119.08M | 1.52B | Investing Cash Flow |
| -1.40B | -2.69B | -163.56M | 267.90M | -2.09B | Financing Cash Flow |
| -2.40B | -1.13B | -178.34M | -647.96M | -375.32M |
Tenaris SA Technical Analysis
Negative
33.55
Price Trends
36.01
Negative
37.18
Negative
34.31
Negative
Market Momentum
-0.81
Negative
45.71
Neutral
62.03
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 33.55 is above the 20-day moving average (MA) of 32.75, below the 50-day MA of 36.01, and below the 200-day MA of 34.31, indicating a neutral trend. The MACD of -0.81 indicates Negative momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 62.03 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.44B | 15.66 | 27.24% | 0.67% | 14.26% | 294.37% | |
75 Outperform | $19.67B | 9.29 | 12.18% | 3.99% | -15.77% | -45.74% | |
74 Outperform | $37.56B | 12.75 | 18.04% | 2.32% | 6.22% | 62.58% | |
71 Outperform | $4.48B | 7.38 | 9.29% | 2.45% | 0.54% | -39.88% | |
66 Neutral | $997.07M | 11.99 | 5.64% | ― | 0.34% | ― | |
65 Neutral | $1.04B | 40.78 | 10.01% | ― | -9.17% | -71.36% | |
56 Neutral | $6.99B | 3.72 | -4.39% | 5.90% | -0.24% | -48.44% |
* Energy Sector Average
Performance Comparison
TS
Tenaris SA
33.55
0.73
2.22%
BKR
Baker Hughes Company
37.10
5.62
17.85%
FTI
TechnipFMC
29.67
3.50
13.37%
HLX
Helix Energy
6.58
-4.77
-42.03%
MRC
MRC Global
12.09
0.50
4.31%
NOV
NOV
12.26
-6.28
-33.87%
Tenaris SA Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 0.78%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong performance in Canada and a solid project backlog countered by challenges in pricing, geopolitical uncertainty, and potential slowdowns in North America. Despite these challenges, the company's financial position remains strong with increased cash flow and a solid net cash position.Q1-2025 Updates
Positive Updates
Strong Free Cash Flow
Free cash flow for the quarter was $647 million, supported by a significant reduction in working capital.
Canadian Market Performance
Record quarterly volume of OCTG shipped in Canada, consolidating the Rig Direct strategy with long-term agreements.
Solid Project Backlog
Strong backlog for offshore projects with high-value OCTG, line pipe, and coating products, including recent successes with Shell and BP.
Resilient Performance in the Middle East
Record quarterly level of shipment to ADNOC and commencement of shipments for a major gas processing facility in Algeria.
Increased Net Cash Position
Net cash position increased to $4 billion, up from $3.6 billion at the end of last year.
Negative Updates
Decline in Average Selling Prices
Average selling price in the Tubes segment decreased 11% year-on-year and 5% sequentially due to market and product mix effects.
Challenges in Mexico
Lower sales of OCTG premium products in Mexico, contributing to a decline in average selling prices.
Potential Slowdown in North American Operations
Expected reduction in North American shale drilling activity if oil prices remain low, with potential impacts starting in Q3 2025.
Geopolitical and Macroeconomic Uncertainty
Uncertainty due to geopolitical tensions and macroeconomic conditions, including tariff implications, impacting future activity levels.
Deteriorating Situation with Pemex
Pemex's operational challenges and unsustainable situation impacting Tenaris operations in Mexico.
Company Guidance
During Tenaris's first quarter 2025 earnings call, the company reported a sequential 3% increase in sales, reaching $2.9 billion, although this was a 15% decrease year-on-year. The average selling price in the Tubes segment decreased by 11% compared to the previous year and 5% sequentially. Despite these challenges, EBITDA rose by 6% on a comparable basis, resulting in a slight increase in the EBITDA margin to 24%, attributed to improved operating performance and cost absorption. The company generated an operating cash flow of $821 million, with capital expenditure at $174 million, leading to a free cash flow of $647 million. Following share buybacks amounting to $237 million, Tenaris's net cash position improved to $4 billion, up from $3.6 billion at the end of 2024. The company anticipates maintaining its EBITDA margin between 20% and 25% in the face of potential challenges, such as a slowdown in North American shale drilling and broader macroeconomic uncertainties.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.