TETRA TECHNOLOGIES INC (TTI)
US88162F1057 - Common Stock
We assign a fundamental rating of 4 out of 10 to TTI. TTI was compared to 65 industry peers in the Energy Equipment & Services industry. While TTI is still in line with the averages on profitability rating, there are concerns on its financial health. TTI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TTI had positive earnings in the past year.
In the past year TTI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TTI reported negative net income in multiple years.
Each year in the past 5 years TTI had a positive operating cash flow.
1.2 Ratios
TTI has a Return On Assets (4.20%) which is in line with its industry peers.
TTI has a Return On Equity of 14.02%. This is in the better half of the industry: TTI outperforms 69.23% of its industry peers.
TTI has a better Return On Invested Capital (8.80%) than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 14.02% | ||
| ROIC | 8.8% |
ROA(3y)11.04%
ROA(5y)3.41%
ROE(3y)42.76%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TTI has a Profit Margin (3.27%) which is comparable to the rest of the industry.
TTI has a Operating Margin (7.02%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TTI has grown nicely.
Looking at the Gross Margin, with a value of 23.99%, TTI is in line with its industry, outperforming 43.08% of the companies in the same industry.
In the last couple of years the Gross Margin of TTI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.02% | ||
| PM (TTM) | 3.27% | ||
| GM | 23.99% |
OM growth 3YN/A
OM growth 5Y16.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.91%
GM growth 5Y8.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TTI is destroying value.
Compared to 1 year ago, TTI has more shares outstanding
TTI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TTI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.07 indicates that TTI is not a great score, but indicates only limited risk for bankruptcy at the moment.
TTI has a Altman-Z score (2.07) which is in line with its industry peers.
TTI has a debt to FCF ratio of 28.89. This is a negative value and a sign of low solvency as TTI would need 28.89 years to pay back of all of its debts.
TTI has a Debt to FCF ratio of 28.89. This is in the lower half of the industry: TTI underperforms 61.54% of its industry peers.
TTI has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.22, TTI is doing worse than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 28.89 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.99
WACC8.92%
2.3 Liquidity
TTI has a Current Ratio of 2.44. This indicates that TTI is financially healthy and has no problem in meeting its short term obligations.
TTI has a better Current ratio (2.44) than 66.15% of its industry peers.
TTI has a Quick Ratio of 1.64. This is a normal value and indicates that TTI is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.64, TTI is doing good in the industry, outperforming 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
TTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 133.33%, which is quite impressive.
The Revenue has grown by 10.83% in the past year. This is quite good.
Measured over the past years, TTI shows a decrease in Revenue. The Revenue has been decreasing by -8.91% on average per year.
EPS 1Y (TTM)133.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
Revenue 1Y (TTM)10.83%
Revenue growth 3Y18.36%
Revenue growth 5Y-8.91%
Sales Q2Q%3.26%
3.2 Future
The Earnings Per Share is expected to grow by 54.42% on average over the next years. This is a very strong growth
Based on estimates for the next years, TTI will show a quite strong growth in Revenue. The Revenue will grow by 15.88% on average per year.
EPS Next Y14.52%
EPS Next 2Y31.52%
EPS Next 3Y73.31%
EPS Next 5Y54.42%
Revenue Next Year7.46%
Revenue Next 2Y9.95%
Revenue Next 3Y15.99%
Revenue Next 5Y15.88%
3.3 Evolution
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
The Price/Earnings ratio is 13.39, which indicates a correct valuation of TTI.
Based on the Price/Earnings ratio, TTI is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
TTI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.41.
A Price/Forward Earnings ratio of 8.34 indicates a reasonable valuation of TTI.
72.31% of the companies in the same industry are more expensive than TTI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, TTI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
TTI's Enterprise Value to EBITDA is on the same level as the industry average.
TTI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TTI is more expensive than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.19 | ||
| EV/EBITDA | 8.09 |
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's earnings are expected to grow with 73.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y31.52%
EPS Next 3Y73.31%
5. Dividend
5.1 Amount
TTI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TETRA TECHNOLOGIES INC
NYSE:TTI (7/26/2024, 7:04:00 PM)
After market: 3.85 +0.1 (+2.67%)3.75
-0.01 (-0.27%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap491.77M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 8.34 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 14.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.02% | ||
| PM (TTM) | 3.27% | ||
| GM | 23.99% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)133.33%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y14.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.83%
Revenue growth 3Y18.36%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y