TenarisTS -2.34%81 5-Year ROIIC % is 41.06 as of Dec. 2025. GuruFocus rates TS with a GF Score™ of 81/100 and a GF Value™ of $34.86 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 869 Oil & Gas companies, Tenaris ranks better than 85.39% on this metric.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Tenaris's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 41.06%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Tenaris's 5-Year ROIIC % or its related term are showing as below:
TS's 5-Year ROIIC % is ranked better than 85.39% of 869
companies
in the Oil & Gas industry
Industry Median: 5.17
vs TS: 41.06
Tenaris (NYSE:TS) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Tenaris 5-Year ROIIC % Related Terms
Tenaris 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Tenaris's 5-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas Equipment & Services subindustry, Tenaris's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tenaris 5-Year ROIIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Tenaris's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Tenaris's 5-Year ROIIC % falls into.
Tenaris's 5-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 1829.2493392 (Dec. 2025) - -46.17 (Dec. 2020) )
/
( 15662.044 (Dec. 2025) - 11531.147 (Dec. 2020) )
=
1875.4193392
/
4130.897
=
45.40%***
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Tenaris (TS) has a 5-Year ROIIC % of 41.06 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Tenaris and its competitors. According to the industry distribution chart, Tenaris ranks #127 out of 869 companies in the Oil & Gas industry, placing it in the top 14.6%.
Is Tenaris' 5-Year ROIIC % too high?
Tenaris' current 5-Year ROIIC % is 41.06. The Oil & Gas industry median 5-Year ROIIC % is 5.17. Tenaris' value of 41.06 is 694.2% above this industry median. Based on the distribution chart, Tenaris ranks #127 out of 869 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Tenaris has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tenaris' 5-Year ROIIC % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Tenaris ranks #127 out of 869 companies for 5-Year ROIIC %. This places Tenaris in the top 15% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 5.17. Tenaris' value of 41.06 is 694.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Oil & Gas company?
The median 5-Year ROIIC % among Oil & Gas companies is 5.17, based on 869 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tenaris's current 5-Year ROIIC % of 41.06 is 694.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Tenaris and its competitors. For the Oil & Gas industry, the median 5-Year ROIIC % is 5.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tenaris's current 5-Year ROIIC % is 41.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tenaris stock overvalued right now?
Based on GuruFocus' analysis, Tenaris (TS) is currently considered Significantly Overvalued. The stock's GF Value™ is $34.86, compared to a current price of $54.19 — trading 55.5% above its estimated fair value. The current 5-Year ROIIC % is 41.06 and 694.2% above the Oil & Gas industry median of 5.17. Tenaris' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Tenaris (TS), the current 5-Year ROIIC % is 41.06 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tenaris (TS) Overvalued in 2026?
Based on GuruFocus' analysis, Tenaris stock appears to be overvalued.
The current stock price of $54.19 is trading 55.5% above its estimated GF Value™ of $34.86.
GuruFocus considers Tenaris to be Significantly Overvalued.
Key valuation signals for TS:
5-Year ROIIC %: 41.06
GF Value™: $34.86 vs. price of $54.19 (55.5% above fair value)
Industry Position: 694.2% above the Oil & Gas median (#127 of 869)
No single metric tells the full story. See the TS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tenaris SA is engaged in the manufacture and supply of steel pipe products and related services for the energy industry and other industrial applications. The company has one reportable segment, Tubes, which includes the production and sale of steel tubular products such as OCTG, line pipe, and mechanical and structural tubes, mainly for the oil and gas industry. It operates an integrated network of manufacturing, research, and service facilities across the Americas, Europe, the Middle East, Asia, and Africa.
81GF Score
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