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Tenaris (BIT:TEN) Could Be 9% Undervalued On Its Ontario Steel Launch

Simply Wall St · 2d ago

Tenaris (BIT:TEN) just switched on domestic production of its TN 95EY steel grade in Sault Ste. Marie, Ontario, aiming to serve Western Canadian operators tackling high pressure, high temperature oil and gas wells.

That operational win lands at a time when Tenaris shares are trading at €25.93, with strong momentum in the background given a year to date share price return of 57.53% and a five year total shareholder return of 223.33%. However, the 7 day share price return of 1.41% and 90 day share price return of 1.61% suggest shorter term enthusiasm has cooled slightly.

Scan beyond Tenaris and see how other energy suppliers with complex well exposure compare in our hand picked list of list of solid balance sheet and fundamentals (204 results)

Tenaris now has a fresh operational proof point in Canada and a share price that has already moved a long way. The real puzzle is whether this quality business is still sensibly valued at €25.93.

Most Popular Narrative: 9% Undervalued

Tenaris is framed as modestly undervalued in the most followed narrative, with a fair value of €28.45 against the latest close at €25.93. This positions this Canadian production win within a broader earnings and capital returns context.

The gradual drawdown of oversupplied U.S. inventories and ramp-up of new offshore and large pipeline projects in 2026-2027 are expected to materially lift volumes and strengthen operating leverage, supporting a rebound in earnings and free cash flow over the medium term.

See why 16 investors see Tenaris as 9% undervalued.

Result: Fair Value of €28.45 (UNDERVALUED)

Still, the narrative around Tenaris can be tested quickly if global energy transition policies accelerate, or if trade tariffs and cost pressures squeeze future margins harder than analysts expect.

Find out about the key risks to this Tenaris narrative.

Next Steps

Mixed sentiment around Tenaris can be a useful signal, as long as you pressure test the numbers yourself and act before the consensus shifts. To weigh the potential upside against the concerns that other investors are flagging, start with the 1 key reward and 1 important warning sign.

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