Tenaris S.A. American Depositary Shares (TS)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Tenaris manufactures steel pipe products for the energy industry, a necessary but cyclical business. In fiscal Q2 2026, revenue was $3.0 billion and net income was $477.1 million, a 16.08% net margin. That is a respectable result. The balance sheet is fortress-like: debt-to-equity is 0.03 and the Altman Z-Score is 7.94. Trailing free cash flow is $1.7 billion, a 5.4% FCF yield, and the dividend yield is 4.23%. But returns are not exceptional: ROE is 11.58% and ROCE is 6.79%. Growth looks modest from the figures provided. At $58.54 on 2026-10-13, the market cap is $31.6 billion. FairStock calculations put the P/E at 15.65, P/B at 3.48, PEG at 2.35, and the Graham Number at $37.60. That means the price is about 56% above the Graham Number, a negative margin of safety of -55.69%. FairStock's score is 61/100, and its Piotroski F-Score is 5/9. FairStock's Lynch category is none because only 0 years of filed results are available and 3 are needed. I like the low debt, cash generation, and dividend, but not the price for a cyclical supplier earning mid-single-digit returns on capital. Quality is decent; valuation is full. Monitor energy capex, margins, and returns on capital.

In plain English: Tenaris makes steel pipes used in oil and gas drilling and pipelines. It is profitable, carries very little debt, and generates cash, so the business looks financially healthy. At the recent price, however, investors are paying a full price compared with what the company earns and owns, and it looks richer than a conservative asset-based measure would suggest.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer