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Tenaris ADR Rep 2 Ord Shs T.TS.B


Primary Symbol: TS

Tenaris S.A. is a holding company, which is a steel producer with production facilities in Mexico, Argentina, Colombia, United States and Guatemala. The Company supplies round steel bars and flat steel products for its pipes business. It operates through Tubes business segment. The Tubes segment includes the production and sale of both seamless and welded steel tubular products, and related services primarily for the oil and gas industry, principally oil country tubular goods (OCTG) used in drilling operations, and for other industrial applications with production processes that include in the transformation of steel into tubular products. It operates in geographical areas, such as North America, South America, Europe, Middle East and Africa, and Asia Pacific. Its products and services include OCTG, Premium Connections, Rig Direct, Offshore Line Pipe, Onshore Line Pipe, Hydrocarbon Processing, Power Generation, Sucker Rods, Coiled Tubing, Industrial and Mechanical, and Automotive.


NYSE:TS - Post by User

Bullboard Posts
Post by extremeriskon Jan 09, 2016 3:03pm
146 Views
Post# 24443439

valuation

valuationAt end of q3 they had over $1 in cash and 42 million ebitda. For q4 expect: vertical scope to provide 4.5 ebitda and legacy business 18 for total of 22.5. Took last year q4 number of 36.4 ebitda and cut in half to arrive at 18. I think that should be good enough haircut haircut account account reduced ad revenues. Add 22.5 to 42 gives you 64.5 ebitda divided by 80 million shares for. 0.80 cents per share ebitda for year. So at current price of $2.40 less $1 cash leaves value of $1.4 or 1.75 times ebitda. That is pretty cheap. Market can overshoot on way up and overshoot on way down. This looks pretty cheap here at 1.75 times ebitda. Don't know if there is anything this cheap on markets now. Another way to look at this is 1.4 times 80 million is value of $112 million or 14 percent of sales. That is cheap for a company with zero debt.
Bullboard Posts