Tenaris S.A. American Depositary Shares (TS)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Generates $1.2 billion in annual free cash flow (3.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 11.7% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.03, providing financial flexibility
• Altman Z-Score of 7.7 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($37) with negative 70% margin of safety—limited downside protection

AI Analysis

Tenaris S.A. American Depositary Shares is a mid-cap energy company valued at $31.6 billion. The business generates $12.0 billion in annual revenue with a 3.7% net margin and $1.2 billion in free cash flow. From a quality standpoint, Tenaris shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 7.7 confirms fortress-level solvency. On valuation, the stock is reasonably priced at 17.1x earnings, with trades above its Graham Number with a negative 70% margin. Growth dynamics show revenue growing at 5.3% and profit growth of -13.1%. The 2.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $1.2 billion in annual free cash flow (3.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer