TETRA TECHNOLOGIES INC (TTI) Stock Fundamental Analysis
NYSE:TTI - New York Stock Exchange, Inc. - US88162F1057 - Common Stock - Currency: USD
Overall TTI gets a fundamental rating of 5 out of 10. We evaluated TTI against 62 industry peers in the Energy Equipment & Services industry. TTI scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TTI.
1. Profitability
1.1 Basic Checks
In the past year TTI was profitable.
TTI had a positive operating cash flow in the past year.
TTI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TTI had a positive operating cash flow.
1.2 Ratios
TTI has a Return On Assets of 17.89%. This is amongst the best in the industry. TTI outperforms 96.77% of its industry peers.
TTI has a better Return On Equity (42.54%) than 95.16% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.34%, TTI is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TTI is in line with the industry average of 8.23%.
The 3 year average ROIC (8.06%) for TTI is below the current ROIC(8.34%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 18.07%, TTI belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
TTI's Profit Margin has declined in the last couple of years.
TTI has a Operating Margin of 8.34%. This is in the lower half of the industry: TTI underperforms 61.29% of its industry peers.
TTI's Operating Margin has improved in the last couple of years.
TTI has a Gross Margin of 23.36%. This is comparable to the rest of the industry: TTI outperforms 45.16% of its industry peers.
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
TTI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TTI has been increased compared to 1 year ago.
The number of shares outstanding for TTI has been increased compared to 5 years ago.
Compared to 1 year ago, TTI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that TTI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.79, TTI perfoms like the industry average, outperforming 56.45% of the companies in the same industry.
TTI has a Debt/Equity ratio of 0.71. This is a neutral value indicating TTI is somewhat dependend on debt financing.
TTI has a worse Debt to Equity ratio (0.71) than 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.79 |
ROIC/WACC0.79
WACC10.61%
2.3 Liquidity
A Current Ratio of 2.19 indicates that TTI has no problem at all paying its short term obligations.
The Current ratio of TTI (2.19) is comparable to the rest of the industry.
A Quick Ratio of 1.36 indicates that TTI should not have too much problems paying its short term obligations.
TTI's Quick ratio of 1.36 is on the low side compared to the rest of the industry. TTI is outperformed by 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for TTI have decreased strongly by -14.29% in the last year.
Looking at the last year, TTI shows a decrease in Revenue. The Revenue has decreased by -4.34% in the last year.
The Revenue has been growing slightly by 1.31% on average over the past years.
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
The Earnings Per Share is expected to grow by 61.75% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.01% on average over the next years. This is quite good.
EPS Next Y53.56%
EPS Next 2Y57.22%
EPS Next 3Y67%
EPS Next 5Y61.75%
Revenue Next Year6.87%
Revenue Next 2Y8.75%
Revenue Next 3Y16.32%
Revenue Next 5Y12.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
TTI is valuated reasonably with a Price/Earnings ratio of 11.50.
Based on the Price/Earnings ratio, TTI is valued a bit cheaper than 66.13% of the companies in the same industry.
TTI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
The Price/Forward Earnings ratio is 6.20, which indicates a rather cheap valuation of TTI.
Based on the Price/Forward Earnings ratio, TTI is valued cheaper than 93.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, TTI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TTI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.95 |
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.
TTI has a very decent profitability rating, which 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)0.21
PEG (5Y)N/A
EPS Next 2Y57.22%
EPS Next 3Y67%
5. Dividend
5.1 Amount
TTI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.76
+0.11 (+4.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners70.48%
Inst Owner Change-0.29%
Ins Owners4.84%
Ins Owner Change5.26%
Market Cap367.27M
Analysts82.5
Price Target6.25 (126.45%)
Short Float %2.59%
Short Ratio2.54
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)-4.3%
PT rev (3m)-2.78%
EPS NQ rev (1m)-10.31%
EPS NQ rev (3m)-30.4%
EPS NY rev (1m)-9.88%
EPS NY rev (3m)-27.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 6.2 | ||
| P/S | 0.61 | ||
| P/FCF | N/A | ||
| P/OCF | 10.06 | ||
| P/B | 1.44 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 5.95 |
EPS(TTM)0.24
EY8.7%
EPS(NY)0.44
Fwd EY16.12%
FCF(TTM)-0.18
FCFYN/A
OCF(TTM)0.27
OCFY9.94%
SpS4.5
BVpS1.91
TBVpS1.73
PEG (NY)0.21
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
WACC10.61%
ROIC/WACC0.79
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 Y53.56%
EPS Next 2Y57.22%
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 Year6.87%
Revenue Next 2Y8.75%
Revenue Next 3Y16.32%
Revenue Next 5Y12.01%
EBIT growth 1Y10.97%
EBIT growth 3YN/A
EBIT growth 5Y52%
EBIT Next Year120.41%
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%