TETRA TECHNOLOGIES INC (TTI) Stock Fundamental Analysis
NYSE:TTI - New York Stock Exchange, Inc. - US88162F1057 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TTI. TTI was compared to 63 industry peers in the Energy Equipment & Services industry. While TTI belongs to the best of the industry regarding profitability, there are concerns on its financial health. TTI has a correct valuation and a medium 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 18.14%. This is amongst the best in the industry. TTI outperforms 98.41% of its industry peers.
With an excellent Return On Equity value of 40.81%, TTI belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
TTI has a better Return On Invested Capital (9.73%) than 76.19% 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 8.44%.
The 3 year average ROIC (8.06%) for TTI is below the current ROIC(9.73%), indicating increased profibility in the last year.
| 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
TTI's Profit Margin of 18.41% 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's Operating Margin of 9.99% is in line compared to the rest of the industry. TTI outperforms 44.44% of its industry peers.
In the last couple of years the Operating Margin of TTI has grown nicely.
The Gross Margin of TTI (25.16%) 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 | 9.99% | ||
| 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.
TTI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TTI has more shares outstanding
The debt/assets ratio for TTI has been reduced compared to a year ago.
2.2 Solvency
TTI has an Altman-Z score of 2.08. 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's Altman-Z score of 2.08 is in line compared to the rest of the industry. TTI outperforms 58.73% of its industry peers.
TTI has a Debt/Equity ratio of 0.66. This is a neutral value indicating TTI is somewhat dependend on debt financing.
TTI has a Debt to Equity ratio of 0.66. This is in the lower half of the industry: TTI underperforms 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.08 |
ROIC/WACC0.92
WACC10.59%
2.3 Liquidity
A Current Ratio of 2.54 indicates that TTI has no problem at all paying 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
The earnings per share for TTI have decreased strongly by -14.29% in the last year.
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.
The Revenue is expected to grow by 11.01% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 14.17, TTI is valued correctly.
TTI's Price/Earnings ratio is a bit cheaper when compared to the industry. TTI is cheaper than 63.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, TTI is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.16, which indicates a very decent valuation of TTI.
TTI's Price/Forward Earnings ratio is rather cheap when compared to the industry. TTI is cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, TTI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 9.16 |
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 | 6.12 |
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.
A more expensive valuation may be justified as TTI's earnings are expected to grow with 67.00% in the coming years.
PEG (NY)0.42
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 |
3.4
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners72.73%
Inst Owner Change4.19%
Ins Owners5.57%
Ins Owner Change7.81%
Market Cap452.44M
Analysts82.5
Price Target5.74 (68.82%)
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)-12.11%
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)-7.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 9.16 | ||
| P/S | 0.75 | ||
| P/FCF | N/A | ||
| P/OCF | 8.34 | ||
| P/B | 1.66 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 6.12 |
EPS(TTM)0.24
EY7.06%
EPS(NY)0.37
Fwd EY10.92%
FCF(TTM)-0.06
FCFYN/A
OCF(TTM)0.41
OCFY12%
SpS4.55
BVpS2.05
TBVpS1.87
PEG (NY)0.42
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 | 2.08 |
F-Score7
WACC10.59%
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%