TETRA TECHNOLOGIES INC (TTI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTI - US88162F1057 - Common Stock
11.44 USD
-0.48 (-4.03%)
Overall TTI gets a fundamental rating of 5 out of 10. We evaluated TTI against 61 industry peers in the Energy Equipment & Services industry. TTI scores excellent on profitability, 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
- 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.
- In the past 5 years TTI always reported a positive cash flow from operatings.
1.2 Ratios
- TTI's Return On Assets of 18.66% is amongst the best of the industry. TTI outperforms 98.36% of its industry peers.
- TTI has a Return On Equity of 41.20%. This is amongst the best in the industry. TTI outperforms 100.00% of its industry peers.
- The Return On Invested Capital of TTI (9.47%) is better than 75.41% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TTI is below the industry average of 12.90%.
- The 3 year average ROIC (8.06%) for TTI is below the current ROIC(9.47%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 19.75%, TTI belongs to the top of the industry, outperforming 98.36% of the companies in the same industry.
- In the last couple of years the Profit Margin of TTI has declined.
- The Operating Margin of TTI (9.94%) is comparable to the rest of the industry.
- TTI's Operating Margin has improved in the last couple of years.
- TTI has a Gross Margin (25.74%) which 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTI is creating some value.
- The number of shares outstanding for TTI has been increased compared to 1 year ago.
- 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 3.94 indicates that TTI is not in any danger for bankruptcy at the moment.
- TTI has a Altman-Z score of 3.94. This is amongst the best in the industry. TTI outperforms 83.61% 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.
- With a Debt to FCF ratio value of 29.19, TTI is not doing good in the industry: 60.66% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 0.61 indicates that TTI is somewhat dependend on debt financing.
- The Debt to Equity ratio of TTI (0.61) is worse than 62.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 29.19 | ||
| Altman-Z | 3.94 |
ROIC/WACC1.04
WACC9.11%
2.3 Liquidity
- TTI has a Current Ratio of 2.35. This indicates that TTI is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of TTI (2.35) is better than 68.85% of its industry peers.
- TTI has a Quick Ratio of 1.56. This is a normal value and indicates that TTI is financially healthy and should not expect problems in meeting its short term obligations.
- TTI has a Quick ratio of 1.56. This is comparable to the rest of the industry: TTI outperforms 59.02% of 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.
- TTI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.17%.
- TTI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.31% yearly.
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
- The Earnings Per Share is expected to grow by 56.53% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 11.01% on average over the next years. This is quite good.
EPS Next Y42.15%
EPS Next 2Y25.79%
EPS Next 3Y34.5%
EPS Next 5Y56.53%
Revenue Next Year3.77%
Revenue Next 2Y3.98%
Revenue Next 3Y5.91%
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 42.37, TTI can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of TTI indicates a slightly more expensive valuation: TTI is more expensive than 62.30% of the companies listed in the same industry.
- TTI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 40.17 indicates a quite expensive valuation of TTI.
- 60.66% of the companies in the same industry are cheaper than TTI, based on the Price/Forward Earnings ratio.
- TTI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.37 | ||
| Fwd PE | 40.17 |
4.2 Price Multiples
- TTI's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. TTI is more expensive than 81.97% of the companies in the same industry.
- TTI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TTI is more expensive than 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 246.83 | ||
| EV/EBITDA | 17.31 |
4.3 Compensation for Growth
- TTI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of TTI may justify a higher PE ratio.
- TTI's earnings are expected to grow with 34.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y25.79%
EPS Next 3Y34.5%
5. Dividend
5.1 Amount
- No dividends for TTI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
Can you provide the valuation status for TETRA TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 2 / 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 earnings growth outlook for TETRA TECHNOLOGIES INC?
The Earnings per Share (EPS) of TETRA TECHNOLOGIES INC (TTI) is expected to grow by 42.15% in the next year.