TSTenaris S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.4×).
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TS?
Tenaris S.A. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.2 points above what the capital costs: growth creates value
- Operating margin
- 19%
Operating margin · Oil & Gas Equipment & Services median 10% · fiscal year to FY2025
- Cash conversion
- 1.43×
Cash conversion · 1.46× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −6.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −13% |
| FY2021 | 11% |
| FY2022 | 25% |
| FY2023 | 29% |
| FY2024 | 19% |
| FY2025 | 19% |
Details›
- Gross marginfiscal year to FY2025
- 34%
- Operating marginfiscal year to FY2025
- 19%
- Net marginfiscal year to FY2025
- 16%
- Free cash flow margin
- 17%
- R&D as % of revenue
- 0.54%
- Revenue, trailing twelve months
- $12.0B
- Free cash flow, trailing twelve months
- $2.03B
- Net income, trailing twelve months
- $1.93B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Oil & Gas Equipment & Services
Ranks #2 of 29 by RyuScore