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Tenaris S.A. (BIT:TEN) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TEN, it is a company with great financial health as well as a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Tenaris here.
Flawless balance sheet with proven track record
Over the past year, TEN has grown its earnings by 93%, with its most recent figure exceeding its annual average over the past five years. Not only did TEN outperformed its past performance, its growth also exceeded the Energy Services industry expansion, which generated a -35% earnings growth. This is what investors like to see! TEN is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that TEN has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. TEN appears to have made good use of debt, producing operating cash levels of 1.13x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Tenaris, I've compiled three pertinent factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for TEN’s future growth? Take a look at our free research report of analyst consensus for TEN’s outlook.
- Valuation: What is TEN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TEN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TEN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.