Latest Ratios: P/E Ratio 15.0x · EV/EBITDA 10.2x · ROE 11.5%. (2002–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $29.9B | $20.0B | $21.3B | $20.5B | $20.8B | $12.3B | $9.4B | $13.4B | $12.6B | $18.8B | $21.1B |
| Enterprise Value | $29.8B | $19.9B | $21.2B | $19.0B | $20.5B | $12.4B | $9.7B | $12.1B | $12.7B | $19.4B | $21.5B |
| P/E Ratio → | 14.99 | 10.34 | 5.22 | 5.22 | 8.14 | 11.22 | — | 17.97 | 14.41 | 34.63 | 357.10 |
| P/S Ratio | 2.50 | 1.67 | 1.70 | 1.38 | 1.76 | 1.89 | 1.83 | 1.83 | 1.64 | 3.56 | 4.91 |
| P/B Ratio | 1.72 | 1.19 | 1.26 | 1.20 | 1.48 | 1.02 | 0.82 | 1.10 | 1.06 | 1.62 | 1.85 |
| P/FCF | 15.10 | 10.08 | 9.83 | 5.42 | 26.96 | — | 7.10 | 11.33 | 47.07 | — | 210.15 |
| P/OCF | 11.51 | 7.69 | 7.42 | 4.66 | 17.78 | 103.41 | 6.19 | 8.75 | 20.60 | — | 24.41 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.66 | 1.69 | 1.28 | 1.74 | 1.91 | 1.89 | 1.66 | 1.66 | 3.68 | 5.01 |
| EV / EBITDA | 10.24 | 6.83 | 6.94 | 3.91 | 5.74 | 9.56 | 619.63 | 8.81 | 8.26 | 20.61 | 35.67 |
| EV / EBIT | 12.99 | 7.88 | 8.38 | 4.02 | 6.38 | 9.83 | — | 12.36 | 11.14 | 42.75 | 379.13 |
| EV / FCF | — | 10.02 | 9.79 | 5.04 | 26.63 | — | 7.35 | 10.24 | 47.49 | — | 214.54 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.4% | 34.4% | 35.0% | 41.7% | 39.7% | 29.3% | 20.6% | 30.0% | 31.1% | 30.3% | 26.3% |
| Operating Margin | 19.1% | 19.1% | 19.3% | 29.0% | 25.2% | 10.8% | -12.9% | 11.4% | 11.4% | 6.3% | -1.4% |
| Net Profit Margin | 16.1% | 16.1% | 16.3% | 26.4% | 21.7% | 16.9% | -12.3% | 10.2% | 11.4% | 10.3% | 1.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.5% | 11.5% | 12.0% | 25.2% | 19.5% | 9.3% | -5.4% | 6.2% | 7.5% | 4.7% | 0.5% |
| ROA | 9.5% | 9.5% | 9.8% | 20.3% | 16.0% | 7.8% | -4.4% | 5.1% | 6.1% | 3.8% | 0.4% |
| ROIC | 10.3% | 10.3% | 11.2% | 22.0% | 17.1% | 4.4% | -4.4% | 5.5% | 5.4% | 2.1% | -0.4% |
| ROCE | 12.9% | 12.9% | 13.4% | 26.2% | 21.4% | 5.6% | -5.2% | 6.5% | 7.0% | 2.7% | -0.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.03 | 0.01 | 0.06 | 0.04 | 0.08 | 0.02 | 0.05 | 0.08 | 0.07 |
| Debt / EBITDA | 0.15 | 0.15 | 0.19 | 0.04 | 0.24 | 0.34 | 58.46 | 0.20 | 0.35 | 1.02 | 1.39 |
| Net Debt / Equity | — | -0.01 | -0.01 | -0.08 | -0.02 | 0.01 | 0.03 | -0.11 | 0.01 | 0.05 | 0.04 |
| Net Debt / EBITDA | -0.04 | -0.04 | -0.03 | -0.29 | -0.07 | 0.10 | 21.30 | -0.94 | 0.07 | 0.67 | 0.73 |
| Debt / FCF | — | -0.06 | -0.04 | -0.38 | -0.33 | — | 0.25 | -1.09 | 0.41 | — | 4.39 |
| Interest Coverage | 53.71 | 53.71 | 41.26 | 44.35 | 69.91 | 53.49 | -21.92 | 21.73 | 30.02 | 16.80 | 2.54 |
Net cash position: cash ($573M) exceeds total debt ($449M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.87 | 3.87 | 3.50 | 3.62 | 3.04 | 3.19 | 3.68 | 3.18 | 3.18 | 2.60 | 2.87 |
| Quick Ratio | 2.33 | 2.33 | 2.10 | 2.27 | 1.61 | 1.48 | 2.27 | 1.91 | 1.71 | 1.45 | 1.97 |
| Cash Ratio | 1.23 | 1.23 | 1.16 | 1.24 | 0.55 | 0.46 | 1.25 | 0.99 | 0.53 | 0.74 | 1.17 |
| Asset Turnover | — | 0.60 | 0.61 | 0.71 | 0.67 | 0.45 | 0.38 | 0.49 | 0.54 | 0.37 | 0.31 |
| Inventory Turnover | 2.18 | 2.18 | 2.19 | 2.21 | 1.78 | 1.73 | 2.50 | 2.25 | 2.09 | 1.56 | 2.02 |
| Days Sales Outstanding | — | 77.59 | 70.92 | 60.90 | 77.39 | 87.92 | 68.66 | 67.46 | 82.80 | 83.79 | 81.16 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.1% | 4.5% | 3.6% | 3.1% | 2.6% | 2.6% | 0.9% | 3.6% | 3.8% | 2.6% | 2.4% |
| Payout Ratio | 46.6% | 46.6% | 37.2% | 16.2% | 20.8% | 29.0% | — | 65.2% | 55.2% | 88.9% | 918.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 9.7% | 19.2% | 19.2% | 12.3% | 8.9% | — | 5.6% | 6.9% | 2.9% | 0.3% |
| FCF Yield | 6.6% | 9.9% | 10.2% | 18.4% | 3.7% | — | 14.1% | 8.8% | 2.1% | — | 0.5% |
| Buyback Yield | 4.6% | 6.8% | 6.8% | 1.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 7.7% | 11.3% | 10.3% | 4.2% | 2.6% | 2.6% | 0.9% | 3.6% | 3.8% | 2.6% | 2.4% |
| Shares Outstanding | — | $520M | $563M | $589M | $590M | $590M | $590M | $590M | $590M | $590M | $590M |
Includes 30+ ratios · 24 years · Updated daily
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Quick answers to the most common questions about buying TS stock.
Tenaris S.A.'s current P/E ratio is 15.0x. The historical average is 14.5x. This places it at the 57th percentile of its historical range.
Tenaris S.A.'s current EV/EBITDA is 10.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
Tenaris S.A.'s return on equity (ROE) is 11.5%. The historical average is 14.7%.
Based on historical data, Tenaris S.A. is trading at a P/E of 15.0x. This is at the 57th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Tenaris S.A.'s current dividend yield is 3.11% with a payout ratio of 46.6%.
Tenaris S.A. has 34.4% gross margin and 19.1% operating margin. Operating margin between 10-20% is typical for established companies.
Tenaris S.A.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Cyclical Margin Compression Risk
Premium to Steel Peers Reflects Moat, But Cyclical Risk Persists
Tenaris trades at a forward EV/EBITDA of 8.02x, a notable premium to pure steel peers like Nucor at 14.80x and Steel Dynamics at 18.13x, which may indicate the market values its specialized logistics model over its commodity production base.
The current forward P/E of 14.38x suggests the market is pricing in mid-cycle earnings power rather than near-term trough earnings, which is plausible given Tenaris's superior net margin of 16.1% versus single-digit margins at peers. However, this premium valuation becomes vulnerable if the North American rig count plateaus or declines, as the recent revenue contraction of 4.33% YoY indicates. Investors should monitor whether the valuation premium is justified by the more stable, service-oriented revenue stream from the Rig Direct model versus the more cyclical, transactional nature of standard steel producers.
Gross Margin Resilience Masks Operating Leverage
Despite a cyclical revenue decline, Tenaris's gross margin has stabilized near 33-34%, outperforming the steel sector average, but its operating margin has contracted from 23.6% in early 2024 to 16.7% in 2026Q2, highlighting the impact of its high fixed-cost base.
The consistent gross margin suggests pricing power for premium seamless connections remains intact even as volumes soften, which is a key indicator of the technical moat. However, the significant operating margin compression confirms the high operating leverage inherent in its manufacturing footprint; as revenue falls, unabsorbed overhead directly erodes profitability. This divergence between gross and operating margin trends is the central analytical challenge—investors must assess whether the current gross margin level is sustainable if rig counts deteriorate further, or if it will follow the operating margin lower.
Negligible Leverage Enables Cyclical Resilience
With a debt-to-equity ratio of just 0.03% as of 2026Q2 and an interest coverage ratio of 49.22x, Tenaris operates with a fortress balance sheet that provides complete insulation from financial distress during industry downturns.
The extremely low leverage profile, maintained consistently over ten quarters, suggests a deliberate capital allocation strategy focused on survivability and opportunistic expansion, not financial engineering. This financial flexibility is a structural advantage during cyclical troughs, allowing the company to maintain investment and potentially acquire assets when competitors are constrained. However, the minimal debt also implies that the company is not using leverage to enhance returns for shareholders, which may be a point of consideration given the current valuation premium.
Cash Conversion Cycle Exposes Working Capital Intensity
The cash conversion cycle has expanded from 192 days in 2024Q1 to 201 days in 2026Q2, driven primarily by a lengthening days inventory outstanding of 168 days, which underscores the capital-intensive nature of holding specialized pipe inventory for just-in-time delivery.
The elongating CCC, particularly the DIO component, appears to be a direct result of the Rig Direct logistics model, where maintaining large regional inventories is a strategic necessity for customer service but ties up significant capital. This efficiency metric contrasts with peers like Nucor (a standard steel producer) and should not be directly compared. The trend indicates that working capital is becoming a larger drag on cash generation during this cyclical slowdown, which explains the volatility in free cash flow margins despite stable net income.
The Misapplied Return on Equity Metric
Tenaris's ROE of 2.8% is misleadingly low and commonly misapplied because it is calculated on an enormous equity base ($17.0B) built from decades of retained earnings, obscuring the company's true capital efficiency and earning power.
The low ROE stems from the denominator effect of massive accumulated retained earnings, which represent over 100% of total equity. This metric is particularly dangerous for Tenaris because it makes the company appear to be a poor capital deployer compared to highly leveraged peers like Nucor (ROE 12.8%), when in fact its profitability (net margin 16.1%) and lack of financial risk are superior. A more appropriate measure is Return on Invested Capital (ROIC), which at 2.2% is also depressed by the same large equity base, but still paints a more accurate picture of underlying operational returns than ROE. Analysts should instead focus on margin trends and free cash flow generation relative to the asset base to evaluate true performance.