Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Tenaris as such a stock due to the following factors:
- TS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $63.1 million.
- TS traded 1.0 million shares today in the pre-market hours as of 9:14 AM, representing 73.7% of its average daily volume.
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More details on TS:
Tenaris S.A., through its subsidiaries, engages in the steel pipe manufacturing and distribution activities. The stock currently has a dividend yield of 1.9%. TS has a PE ratio of 15.7. Currently there are 3 analysts that rate Tenaris a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for Tenaris has been 880,300 shares per day over the past 30 days. Tenaris has a market cap of $26.6 billion and is part of the industrial goods sector and industrial industry. Shares are up 3.6% year-to-date as of the close of trading on Wednesday.
rates Tenaris as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- TS's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TS has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 52.27% to $753.17 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 30.43%.
- 41.70% is the gross profit margin for TENARIS SA which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.42% trails the industry average.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- TS, with its decline in revenue, underperformed when compared the industry average of 9.1%. Since the same quarter one year prior, revenues slightly dropped by 9.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Tenaris Ratings Report.