$Tenaris (TS.US)$Over the past 5 years, revenue reached its ...

Revenue increased by 82% in the first three quarters of 2022, operating profit increased by 3.5 times, and net income increased by 1.4 times to reach 1.75 billion.

The income statement shows that interest income was higher than interest expenses for most of the time, with no interest burden.

The asset-liability ratio has decreased from 19.6% to 16.2% over the past five years, and then increased to 21% in Q3 2022.

In 2021, inventory increased by 1 billion to reach 2.7 billion, accounting for 40% of revenue. The increase in inventory is equivalent to the increase in net income. In 2022, inventory further increased by 1 billion to 3.7 billion, with revenue of 8.14 billion and net income of 1.75 billion during the same period.

The recent increase in the asset-liability ratio is mainly due to a sharp increase in short-term borrowings to 0.83 billion, but the leverage ratio is not high.

Over the past five years, operating cash flow has accumulated higher than investment cash flow, resulting in some shareholder surplus.

Currently, the P/E ratio is 19, and the P/E ratio TTM has dropped to 9.8. If the annual net income reaches 2.33 billion, the P/E ratio will decrease to 8.9. However, if calculated based on the average net income of 0.51 billion, the P/E ratio will reach 41. It has short-term value but long-term value is questionable. You can consider opening a small observation position. (⭐️)