TETRA TECHNOLOGIES INC (TTI) Stock Fundamental Analysis
NYSE:TTI - New York Stock Exchange, Inc. - US88162F1057 - Common Stock - Currency: USD
Taking everything into account, TTI scores 5 out of 10 in our fundamental rating. TTI was compared to 63 industry peers in the Energy Equipment & Services industry. TTI has an excellent profitability rating, but there are concerns on its financial health. TTI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
TTI had positive earnings in the past year.
TTI had a positive operating cash flow in the past year.
TTI had positive earnings in 4 of the past 5 years.
TTI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TTI (17.89%) is better than 96.83% of its industry peers.
Looking at the Return On Equity, with a value of 42.54%, TTI belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
TTI has a better Return On Invested Capital (8.34%) than 63.49% of its industry peers.
TTI had an Average Return On Invested Capital over the past 3 years of 8.06%. This is in line with the industry average of 8.65%.
The last Return On Invested Capital (8.34%) for TTI is above the 3 year average (8.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.89% | ||
| ROE | 42.54% | ||
| ROIC | 8.34% |
ROA(3y)8.36%
ROA(5y)9.3%
ROE(3y)22.39%
ROE(5y)N/A
ROIC(3y)8.06%
ROIC(5y)N/A
1.3 Margins
TTI's Profit Margin of 18.07% is amongst the best of the industry. TTI outperforms 96.83% of its industry peers.
In the last couple of years the Profit Margin of TTI has declined.
TTI has a Operating Margin of 8.34%. This is in the lower half of the industry: TTI underperforms 60.32% of its industry peers.
TTI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 23.36%, TTI is in line with its industry, outperforming 44.44% of the companies in the same industry.
TTI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.34% | ||
| PM (TTM) | 18.07% | ||
| GM | 23.36% |
OM growth 3YN/A
OM growth 5Y50.03%
PM growth 3Y-12.1%
PM growth 5YN/A
GM growth 3Y14.89%
GM growth 5Y5.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TTI is destroying value.
The number of shares outstanding for TTI has been increased compared to 1 year ago.
TTI has more shares outstanding than it did 5 years ago.
TTI has a better debt/assets ratio than last year.
2.2 Solvency
TTI has an Altman-Z score of 1.79. This is a bad value and indicates that TTI is not financially healthy and even has some risk of bankruptcy.
TTI has a Altman-Z score of 1.79. This is comparable to the rest of the industry: TTI outperforms 55.56% of its industry peers.
TTI has a Debt/Equity ratio of 0.71. This is a neutral value indicating TTI is somewhat dependend on debt financing.
The Debt to Equity ratio of TTI (0.71) is worse than 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.79 |
ROIC/WACC0.77
WACC10.78%
2.3 Liquidity
A Current Ratio of 2.19 indicates that TTI has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.19, TTI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
TTI has a Quick Ratio of 1.36. This is a normal value and indicates that TTI is financially healthy and should not expect problems in meeting its short term obligations.
TTI has a Quick ratio of 1.36. This is in the lower half of the industry: TTI underperforms 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
TTI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.29%.
TTI shows a decrease in Revenue. In the last year, the revenue decreased by -4.34%.
Measured over the past years, TTI shows a small growth in Revenue. The Revenue has been growing by 1.31% on average per year.
EPS 1Y (TTM)-14.29%
EPS 3Y0%
EPS 5YN/A
EPS Q2Q%120%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y15.56%
Revenue growth 5Y1.31%
Sales Q2Q%4.09%
3.2 Future
Based on estimates for the next years, TTI will show a very strong growth in Earnings Per Share. The EPS will grow by 61.75% on average per year.
Based on estimates for the next years, TTI will show a quite strong growth in Revenue. The Revenue will grow by 12.01% on average per year.
EPS Next Y33.54%
EPS Next 2Y43.6%
EPS Next 3Y67%
EPS Next 5Y61.75%
Revenue Next Year1.05%
Revenue Next 2Y4.25%
Revenue Next 3Y16.32%
Revenue Next 5Y12.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.17 indicates a reasonable valuation of TTI.
Based on the Price/Earnings ratio, TTI is valued a bit cheaper than the industry average as 69.84% of the companies are valued more expensively.
TTI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
TTI is valuated cheaply with a Price/Forward Earnings ratio of 7.22.
88.89% of the companies in the same industry are more expensive than TTI, based on the Price/Forward Earnings ratio.
TTI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
TTI's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.92 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TTI may justify a higher PE ratio.
TTI's earnings are expected to grow with 67.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y43.6%
EPS Next 3Y67%
5. Dividend
5.1 Amount
TTI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.68
-0.06 (-2.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners70.48%
Inst Owner Change4.19%
Ins Owners4.84%
Ins Owner Change7.27%
Market Cap356.63M
Analysts82.5
Price Target5.74 (114.18%)
Short Float %3.62%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.46%
Min EPS beat(2)-21%
Max EPS beat(2)12.09%
EPS beat(4)2
Avg EPS beat(4)5.56%
Min EPS beat(4)-29.57%
Max EPS beat(4)60.73%
EPS beat(8)3
Avg EPS beat(8)-5.6%
EPS beat(12)4
Avg EPS beat(12)78.4%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.56%
Min Revenue beat(2)-5.47%
Max Revenue beat(2)-3.64%
Revenue beat(4)0
Avg Revenue beat(4)-4.51%
Min Revenue beat(4)-6.2%
Max Revenue beat(4)-2.71%
Revenue beat(8)2
Avg Revenue beat(8)-3.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.35%
Revenue beat(16)6
Avg Revenue beat(16)-1.05%
PT rev (1m)-10%
PT rev (3m)-10.71%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-31.2%
EPS NY rev (1m)-13.03%
EPS NY rev (3m)-37.33%
Revenue NQ rev (1m)-2.04%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-5.44%
Revenue NY rev (3m)-9.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 7.22 | ||
| P/S | 0.6 | ||
| P/FCF | N/A | ||
| P/OCF | 9.77 | ||
| P/B | 1.4 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 5.92 |
EPS(TTM)0.24
EY8.96%
EPS(NY)0.37
Fwd EY13.85%
FCF(TTM)-0.18
FCFYN/A
OCF(TTM)0.27
OCFY10.24%
SpS4.5
BVpS1.91
TBVpS1.73
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.89% | ||
| ROE | 42.54% | ||
| ROCE | 10.38% | ||
| ROIC | 8.34% | ||
| ROICexc | 9.03% | ||
| ROICexgc | 9.57% | ||
| OM | 8.34% | ||
| PM (TTM) | 18.07% | ||
| GM | 23.36% | ||
| FCFM | N/A |
ROA(3y)8.36%
ROA(5y)9.3%
ROE(3y)22.39%
ROE(5y)N/A
ROIC(3y)8.06%
ROIC(5y)N/A
ROICexc(3y)8.98%
ROICexc(5y)N/A
ROICexgc(3y)9.83%
ROICexgc(5y)N/A
ROCE(3y)10.03%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y80.49%
ROICexc growth 3YN/A
ROICexc growth 5Y81.01%
OM growth 3YN/A
OM growth 5Y50.03%
PM growth 3Y-12.1%
PM growth 5YN/A
GM growth 3Y14.89%
GM growth 5Y5.02%
F-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 169.87% | ||
| Cap/Sales | 10.13% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 42.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 1.79 |
F-Score5
WACC10.78%
ROIC/WACC0.77
Cap/Depr(3y)134.35%
Cap/Depr(5y)97.81%
Cap/Sales(3y)7.82%
Cap/Sales(5y)7.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.29%
EPS 3Y0%
EPS 5YN/A
EPS Q2Q%120%
EPS Next Y33.54%
EPS Next 2Y43.6%
EPS Next 3Y67%
EPS Next 5Y61.75%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y15.56%
Revenue growth 5Y1.31%
Sales Q2Q%4.09%
Revenue Next Year1.05%
Revenue Next 2Y4.25%
Revenue Next 3Y16.32%
Revenue Next 5Y12.01%
EBIT growth 1Y10.97%
EBIT growth 3YN/A
EBIT growth 5Y52%
EBIT Next Year104.16%
EBIT Next 3Y58.91%
EBIT Next 5Y51.81%
FCF growth 1Y-175.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-47.98%
OCF growth 3Y98.67%
OCF growth 5Y-16.55%