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. While TTI has a great profitability rating, there are some minor concerns on its financial health. TTI is not valued too expensively and it also shows a decent 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.
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
TTI has a Return On Assets of 18.14%. This is amongst the best in the industry. TTI outperforms 98.41% of its industry peers.
The Return On Equity of TTI (40.81%) is better than 98.41% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.73%, TTI is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TTI is in line with the industry average of 8.44%.
The last Return On Invested Capital (9.73%) for TTI is above the 3 year average (8.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.14% | ||
| ROE | 40.81% | ||
| ROIC | 9.73% |
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 18.41%, TTI belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
In the last couple of years the Profit Margin of TTI has declined.
TTI's Operating Margin of 9.99% is in line compared to the rest of the industry. TTI outperforms 44.44% of its industry peers.
TTI's Operating Margin has improved in the last couple of years.
TTI has a Gross Margin (25.16%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TTI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.99% | ||
| PM (TTM) | 18.41% | ||
| GM | 25.16% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
TTI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.13 indicates that TTI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.13, TTI is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
TTI has a Debt/Equity ratio of 0.66. This is a neutral value indicating TTI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, TTI is not doing good in the industry: 68.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.13 |
ROIC/WACC0.92
WACC10.62%
2.3 Liquidity
TTI has a Current Ratio of 2.54. This indicates that TTI is financially healthy and has no problem in meeting its short term obligations.
TTI's Current ratio of 2.54 is fine compared to the rest of the industry. TTI outperforms 76.19% of its industry peers.
A Quick Ratio of 1.61 indicates that TTI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.61, TTI perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.61 |
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 -4.08%.
TTI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.31% yearly.
EPS 1Y (TTM)-14.29%
EPS 3Y0%
EPS 5YN/A
EPS Q2Q%120%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y15.56%
Revenue growth 5Y1.31%
Sales Q2Q%4.09%
3.2 Future
TTI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 56.53% yearly.
Based on estimates for the next years, TTI will show a quite strong growth in Revenue. The Revenue will grow by 11.01% on average per year.
EPS Next Y33.54%
EPS Next 2Y43.6%
EPS Next 3Y67%
EPS Next 5Y56.53%
Revenue Next Year1.05%
Revenue Next 2Y4.25%
Revenue Next 3Y16.32%
Revenue Next 5Y11.01%
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
TTI is valuated correctly with a Price/Earnings ratio of 14.92.
TTI's Price/Earnings ratio is a bit cheaper when compared to the industry. TTI is cheaper than 60.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TTI is valued a bit cheaper.
TTI is valuated reasonably with a Price/Forward Earnings ratio of 9.65.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTI indicates a rather cheap valuation: TTI is cheaper than 84.13% of the companies listed in the same industry.
TTI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
TTI's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
TTI's 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)0.44
PEG (5Y)N/A
EPS Next 2Y43.6%
EPS Next 3Y67%
5. Dividend
5.1 Amount
No dividends for TTI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.58
-0.04 (-1.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners72.73%
Inst Owner Change0%
Ins Owners5.57%
Ins Owner Change7.81%
Market Cap476.39M
Analysts82.5
Price Target5.74 (60.34%)
Short Float %2.91%
Short Ratio2.1
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)2
Avg EPS beat(2)51.03%
Min EPS beat(2)12.09%
Max EPS beat(2)89.97%
EPS beat(4)2
Avg EPS beat(4)12.87%
Min EPS beat(4)-29.57%
Max EPS beat(4)89.97%
EPS beat(8)4
Avg EPS beat(8)10.03%
EPS beat(12)4
Avg EPS beat(12)-4.78%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.36%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-3.07%
Revenue beat(4)0
Avg Revenue beat(4)-4.6%
Min Revenue beat(4)-6.2%
Max Revenue beat(4)-3.07%
Revenue beat(8)2
Avg Revenue beat(8)-3.04%
Revenue beat(12)4
Avg Revenue beat(12)-1.55%
Revenue beat(16)6
Avg Revenue beat(16)-1.21%
PT rev (1m)0%
PT rev (3m)-10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-44.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 9.65 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 8.78 | ||
| P/B | 1.74 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 6.43 |
EPS(TTM)0.24
EY6.7%
EPS(NY)0.37
Fwd EY10.37%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.41
OCFY11.39%
SpS4.55
BVpS2.05
TBVpS1.87
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.14% | ||
| ROE | 40.81% | ||
| ROCE | 12.1% | ||
| ROIC | 9.73% | ||
| ROICexc | 10.6% | ||
| ROICexgc | 11.18% | ||
| OM | 9.99% | ||
| PM (TTM) | 18.41% | ||
| GM | 25.16% | ||
| 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-Score7
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 173.9% | ||
| Cap/Sales | 10.38% | ||
| Interest Coverage | 2.84 | ||
| Cash Conversion | 56.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 2.13 |
F-Score7
WACC10.62%
ROIC/WACC0.92
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 5Y56.53%
Revenue 1Y (TTM)-4.08%
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 5Y11.01%
EBIT growth 1Y36.54%
EBIT growth 3YN/A
EBIT growth 5Y52%
EBIT Next Year104.16%
EBIT Next 3Y58.91%
EBIT Next 5Y48.21%
FCF growth 1Y60.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y146.6%
OCF growth 3Y98.67%
OCF growth 5Y-16.55%