TEN Tenneco stock Story

TEN -  USA Stock  

USD 20.33  0.52  2.62%

Tenneco Market Capitalization is quite stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 3.34 Billion. Working Capital is expected to rise to about 613.7 M this year, although the value of Net Income Per Employee will most likely fall to (4.4 K). The goal of this thesis is to give institutional investors our take on Tenneco future value. We will inspect the reasons why it could be a game-changer for Tenneco institutional investors.
Published over six months ago
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Estimating Tenneco (NYSE:TEN) price for December 2020.
The company has a beta of -0.3652. Let's try to break down what Tenneco's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Tenneco will likely underperform. The beta indicator helps investors understand whether Tenneco moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Tenneco deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Tenneco Automotive. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Tenneco Automotive

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Tenneco Automotive's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Tenneco Automotive in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Tenneco Automotive. Your research has to be compared to or analyzed against Tenneco Automotive's peers to derive any actionable benefits. When done correctly, Tenneco Automotive's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Tenneco Automotive.

How important is Tenneco Automotive's Liquidity

Tenneco Automotive financial leverage refers to using borrowed capital as a funding source to finance Tenneco Automotive ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tenneco Automotive financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Tenneco Automotive's total debt and its cash.

How TEN Tenneco utilizes its cash?

To perform a cash flow analysis of Tenneco Automotive, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Tenneco Automotive is receiving and how much cash it distributes out in a given period. The Tenneco Automotive cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Tenneco Automotive Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 516.51 Million

Sale by Icahn Carl C of 950305 shares of Tenneco Automotive

Legal trades by Tenneco Automotive insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Tenneco insider trading alert for sale of class a common stock by Icahn Carl C, the corporate stakeholder, on 18th of June 2021. This event was filed by Tenneco Inc with SEC on 2021-03-12. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Tenneco Automotive Investor Appetite?

Tenneco exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Tenneco individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Tenneco future systematic risk.

Returns Breakdown

Return on Sales
Return Capital
Return on Investment0.52
Return on Assets(2.59)
Return on Equity(21.76)
Return Capital0.0963
Return on Sales0.0407

Tenneco is getting insane

Latest treynor ratio indicator falls down to -0.87. Possible price upswing? As of the 2nd of November, Tenneco has the Semi Deviation of 4.2, risk adjusted performance of 0.0843, and Coefficient Of Variation of 1440.65. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Tenneco, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Tenneco, which can be compared to its competition. Please validate Tenneco variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Tenneco is priced more or less accurately, providing market reflects its prevalent price of 7.24 per share. Given that Tenneco has jensen alpha of 0.3146, we advise you to double-check Tenneco's current market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Tenneco

Whereas some other firms in the auto parts industry are either recovering or due for a correction, Tenneco may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Tenneco valuation and our trade advice on Tenneco is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Tenneco.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Tenneco Automotive. Please refer to our Terms of Use for any information regarding our disclosure principles.

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