TETRA TECHNOLOGIES INC (TTI) Stock Fundamental Analysis
USA - NYSE:TTI - US88162F1057 - Common Stock
7.42 USD
+0.25 (+3.49%)
7.42 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TTI. TTI was compared to 60 industry peers in the Energy Equipment & Services industry. TTI has an excellent profitability rating, but there are some minor concerns on its financial health. TTI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TTI was profitable.
In the past year TTI had a positive cash flow from operations.
Of the past 5 years TTI 4 years were profitable.
Each year in the past 5 years TTI had a positive operating cash flow.
1.2 Ratios
TTI has a Return On Assets of 18.66%. This is amongst the best in the industry. TTI outperforms 98.33% of its industry peers.
Looking at the Return On Equity, with a value of 41.20%, TTI belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.47%, TTI is doing good in the industry, outperforming 75.00% 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 7.76%.
The last Return On Invested Capital (9.47%) for TTI is above the 3 year average (8.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.66% | ||
| ROE | 41.2% | ||
| ROIC | 9.47% |
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 has a Profit Margin of 19.75%. This is amongst the best in the industry. TTI outperforms 98.33% of its industry peers.
TTI's Profit Margin has declined in the last couple of years.
TTI has a Operating Margin (9.94%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TTI has grown nicely.
The Gross Margin of TTI (25.74%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TTI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | 19.75% | ||
| GM | 25.74% |
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 just above the Cost of Capital (WACC), so TTI is still creating some value.
TTI has more shares outstanding than it did 1 year ago.
TTI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TTI has an improved debt to assets ratio.
2.2 Solvency
TTI has an Altman-Z score of 2.87. This is not the best score and indicates that TTI is in the grey zone with still only limited risk for bankruptcy at the moment.
TTI has a better Altman-Z score (2.87) than 76.67% of its industry peers.
The Debt to FCF ratio of TTI is 29.19, which is on the high side as it means it would take TTI, 29.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TTI (29.19) is worse than 60.00% of its industry peers.
TTI has a Debt/Equity ratio of 0.61. This is a neutral value indicating TTI is somewhat dependend on debt financing.
The Debt to Equity ratio of TTI (0.61) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 29.19 | ||
| Altman-Z | 2.87 |
ROIC/WACC1.02
WACC9.28%
2.3 Liquidity
A Current Ratio of 2.35 indicates that TTI has no problem at all paying its short term obligations.
TTI has a Current ratio of 2.35. This is in the better half of the industry: TTI outperforms 66.67% of its industry peers.
A Quick Ratio of 1.56 indicates that TTI should not have too much problems paying its short term obligations.
TTI has a Quick ratio (1.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
TTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
The Revenue has been growing slightly by 0.17% in the past year.
The Revenue has been growing slightly by 1.31% on average over the past years.
EPS 1Y (TTM)50%
EPS 3Y0%
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)0.17%
Revenue growth 3Y15.56%
Revenue growth 5Y1.31%
Sales Q2Q%8.14%
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.
The Revenue is expected to grow by 11.01% on average over the next years. This is quite good.
EPS Next Y43.08%
EPS Next 2Y27.12%
EPS Next 3Y34.85%
EPS Next 5Y56.53%
Revenue Next Year3.91%
Revenue Next 2Y4.24%
Revenue Next 3Y9.37%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.48, the valuation of TTI can be described as expensive.
61.67% of the companies in the same industry are cheaper than TTI, based on the Price/Earnings ratio.
TTI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.51, TTI can be considered very expensive at the moment.
60.00% of the companies in the same industry are cheaper than TTI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.46. TTI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.48 | ||
| Fwd PE | 25.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTI is valued more expensive than 86.67% of the companies in the same industry.
65.00% of the companies in the same industry are cheaper than TTI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 159.53 | ||
| EV/EBITDA | 10.84 |
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 34.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y27.12%
EPS Next 3Y34.85%
5. Dividend
5.1 Amount
TTI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.42
+0.25 (+3.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners75.02%
Inst Owner Change9.09%
Ins Owners5.74%
Ins Owner Change4.99%
Market Cap988.94M
Revenue(TTM)618.75M
Net Income(TTM)122.23M
Analysts82.5
Price Target7.91 (6.6%)
Short Float %4.28%
Short Ratio2.03
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)48.84%
Min EPS beat(2)29.14%
Max EPS beat(2)68.53%
EPS beat(4)4
Avg EPS beat(4)49.93%
Min EPS beat(4)12.09%
Max EPS beat(4)89.97%
EPS beat(8)5
Avg EPS beat(8)20.06%
EPS beat(12)6
Avg EPS beat(12)8.72%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.73%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)5.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)5.63%
Revenue beat(8)2
Avg Revenue beat(8)-1.83%
Revenue beat(12)4
Avg Revenue beat(12)-1.29%
Revenue beat(16)7
Avg Revenue beat(16)0.1%
PT rev (1m)12.73%
PT rev (3m)29.17%
EPS NQ rev (1m)-42.86%
EPS NQ rev (3m)-28.21%
EPS NY rev (1m)4.08%
EPS NY rev (3m)7.14%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)1.62%
Revenue NY rev (3m)3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.48 | ||
| Fwd PE | 25.51 | ||
| P/S | 1.6 | ||
| P/FCF | 159.53 | ||
| P/OCF | 13.32 | ||
| P/B | 3.33 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 10.84 |
EPS(TTM)0.27
EY3.64%
EPS(NY)0.29
Fwd EY3.92%
FCF(TTM)0.05
FCFY0.63%
OCF(TTM)0.56
OCFY7.51%
SpS4.64
BVpS2.23
TBVpS2.06
PEG (NY)0.64
PEG (5Y)N/A
Graham Number3.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.66% | ||
| ROE | 41.2% | ||
| ROCE | 11.79% | ||
| ROIC | 9.47% | ||
| ROICexc | 10.87% | ||
| ROICexgc | 11.43% | ||
| OM | 9.94% | ||
| PM (TTM) | 19.75% | ||
| GM | 25.74% | ||
| FCFM | 1% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 29.19 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 183.06% | ||
| Cap/Sales | 11% | ||
| Interest Coverage | 3.02 | ||
| Cash Conversion | 75.25% | ||
| Profit Quality | 5.07% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 2.87 |
F-Score7
WACC9.28%
ROIC/WACC1.02
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)50%
EPS 3Y0%
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y43.08%
EPS Next 2Y27.12%
EPS Next 3Y34.85%
EPS Next 5Y56.53%
Revenue 1Y (TTM)0.17%
Revenue growth 3Y15.56%
Revenue growth 5Y1.31%
Sales Q2Q%8.14%
Revenue Next Year3.91%
Revenue Next 2Y4.24%
Revenue Next 3Y9.37%
Revenue Next 5Y11.01%
EBIT growth 1Y34.29%
EBIT growth 3YN/A
EBIT growth 5Y52%
EBIT Next Year109.97%
EBIT Next 3Y58.91%
EBIT Next 5Y48.21%
FCF growth 1Y-7.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y67.5%
OCF growth 3Y98.67%
OCF growth 5Y-16.55%
TETRA TECHNOLOGIES INC / TTI FAQ
Can you provide the ChartMill fundamental rating for TETRA TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 5 / 10 to TTI.
What is the valuation status for TTI stock?
ChartMill assigns a valuation rating of 3 / 10 to TETRA TECHNOLOGIES INC (TTI). This can be considered as Overvalued.
How profitable is TETRA TECHNOLOGIES INC (TTI) stock?
TETRA TECHNOLOGIES INC (TTI) has a profitability rating of 7 / 10.
What is the valuation of TETRA TECHNOLOGIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TETRA TECHNOLOGIES INC (TTI) is 27.48 and the Price/Book (PB) ratio is 3.33.
What is the expected EPS growth for TETRA TECHNOLOGIES INC (TTI) stock?
The Earnings per Share (EPS) of TETRA TECHNOLOGIES INC (TTI) is expected to grow by 43.08% in the next year.