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Is Tenaris (BIT:TEN) Still Undervalued After Its Canadian TN 95EY Rollout?

Simply Wall St · 1d ago

Tenaris (BIT:TEN) has moved its proprietary TN 95EY steel grade into domestic production at Sault Ste. Marie in Ontario, targeting demanding Western Canadian oil and gas wells with high pressure and sour service conditions.

Tenaris shares have been on a strong run this year, with a year to date share price return of 58.75% and a 1 year total shareholder return of 82.11%. The recent 10.39% 1 month share price gain suggests momentum has been building as investors react to product moves like the TN 95EY rollout and other operational updates such as the upgraded Nigerian thermal insulation plant.

Scan how Tenaris compares with other energy suppliers benefiting from infrastructure and resource investment by running the curated 16 top copper producer stocks alongside this story.

After a move like this, and with fresh capital going into higher grade products such as TN 95EY, the real question is straightforward: Does buying Tenaris now make more sense than waiting for a cheaper entry later?

Most Popular Narrative: 25.4% Undervalued

Tenaris closed at €26.13, against a widely followed fair value narrative of about €35.04. This frames the current rally as only part of the story rather than the end of it.

The CAD 306 million expansion of the Sault Ste. Marie mill, supported by Canadian government funding and combined with tariff barriers that constrain imports into Canada, opens scope for Tenaris to substitute more domestic production for previously imported volumes and capture higher pricing. This could support Canadian revenue and segment net margins.

See why 3 investors see Tenaris as 25% undervalued.

Result: Fair Value of €35.04 (UNDERVALUED)

Still, Tenaris faces real pressure if deferred Middle East shipments remain stuck or logistics costs stay elevated. This could keep earnings and cash generation under strain.

Find out about the key risks to this Tenaris narrative.

Next Steps

If this mix of optimism and concern around Tenaris feels familiar, treat it as your cue to move fast and stress test the data for yourself using the 1 key reward and 1 important warning sign.

Looking for more Tenaris-sized investment ideas?

If Tenaris has sharpened your focus, do not just stop here. Broaden your watchlist and let fresh ideas compete for a place in your portfolio.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.