Skip to Content

Tenneco Inc Class A TEN

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Tenneco Starts 2021 with Strong Q1 Results, Raises 2021 Guidance; Raising FVE to $31.50

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

No-moat-rated Tenneco reported first quarter adjusted earnings per share (EPS) of $1.09, blowing past the $0.66 FactSet consensus EPS estimate by $0.43. Value-added (VA) revenue (excludes pass-through catalytic converter) increased 16% to $3.6 billion from $3.1 billion last year. Excluding currency, organic VA revenue rose 13% on COVID-19 recovery in China and strong commercial truck, off-highway, and industrial markets. Adjusted EBITDA was $388 million, up 62.3% from $239 million reported a year ago. Margin to VA revenue expanded 310 basis points to 10.7% on higher volume and the company’s turnaround program. Quarter-end liquidity was healthy at $2.1 billion, including $626 million in cash and $1.5 billion available revolver. Due to operating results, lower capital expenditures, and despite an unfavorable $167 million working capital swing on higher business activity, first quarter seasonal cash usage improved to $95 million from $137 million.

Read Full Analysis

Company Profile

Business Description

Tenneco's emissions-control products meet strict air-quality legislation, optimize engine performance, improve fuel economy, and acoustically tune engine sound to fit a vehicle's profile. Ride-control products enhance safety by enabling improved steering, braking, and acceleration as well as ride comfort. Champion, Fel-Pro, Moog, Monroe, and Walker are some of Tenneco's well-known aftermarket brands. In 2020, 40% of revenue came from North America, 37% from Europe, 18% from China, and 5% other regions.

Contact
500 North Field Drive
Lake Forest, IL, 60045
T +1 847 482-5000
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 73,000

Related