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Tetra Technologies Inc (TTI)
NYSE:TTI
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Tetra Technologies
(NYSE:TTI)
61Neutral
Positive Factors
Innovation
Launched TETRA Oasis TDS, an end-to-end water treatment and desalination technology for beneficial re-use and mineral extraction applications.
Product Demand
Constructive outlook driven by robust backlog of deep-water projects and strong demand for its PureFlow battery.
Revenue Growth
TTI expects revenues to increase 8-12% vs 2024 and FCF to exceed $50mn.
Negative Factors
Service Performance
Strong activity in Completion Fluids will offset softness in Water & Flowback Services.
Tetra Technologies (TTI) vs. S&P 500 (SPY)
Market Cap
$477.94M
Dividend YieldN/A
Average Volume (3M)953.71K
Price to Earnings (P/E)4.4
Beta (1Y)0.83
Revenue Growth-4.34%
EPS Growth312.14%
CountryUS
Employees1,400
SectorEnergy
Sector Strength85
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.81
Shares Outstanding132,394,170
10 Day Avg. Volume885,086
30 Day Avg. Volume953,708
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)N/A
Price to Sales (P/S)0.74
Price to Cash Flow (P/CF)19.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.50Price Target Upside93.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Tetra Technologies Business Overview & Revenue Model
Company DescriptionTetra Technologies, Inc. (TTI) is a diversified oil and gas services company headquartered in The Woodlands, Texas. The company operates in the energy sector, focusing on providing solutions for completion fluids, water management, and production testing. Tetra Technologies serves a wide range of customers in the oil and gas industry, offering products and services that are critical for the exploration and production phases of oil and gas wells. Their core offerings include clear brine fluids, water treatment technologies, and well testing services.
How the Company Makes MoneyTetra Technologies generates revenue primarily through its two main business segments: Completion Fluids & Products, and Water & Flowback Services. The Completion Fluids & Products segment provides clear brine fluids used in the completion of oil and gas wells, which are essential for maintaining well integrity and optimizing production. Revenue in this segment is driven by the demand for drilling and completion activities in the oil and gas industry. The Water & Flowback Services segment offers water management services, including sourcing, transfer, storage, and treatment of water, as well as flowback and production testing services. This segment's earnings are influenced by the level of onshore and offshore oil and gas exploration and production activities. Tetra Technologies also benefits from strategic partnerships and collaborations that enhance its service offerings and expand its market reach.
Tetra Technologies Financial Statement Overview
Summary
Tetra Technologies has improved profitability metrics with a notable turnaround in net income and operational efficiency. However, revenue growth remains inconsistent, and balance sheet leverage is a concern. Cash flow challenges due to high capital expenditures indicate potential liquidity issues, although operational cash flow shows a positive trend.Income Statement
Tetra Technologies shows a mixed income statement performance. The company has improved its EBIT and net income over recent years, indicating a turnaround from previous losses. However, revenue has declined from previous highs, and recent gross profit margins have decreased. EBIT and EBITDA margins improved significantly in the latest year, reflecting operational efficiencies.67
Positive
Balance Sheet
The balance sheet reveals a moderate financial position. The debt-to-equity ratio has decreased over the years, indicating reduced leverage, but it remains relatively high. The equity ratio is low, suggesting high liabilities relative to total assets. However, improved net income has positively impacted return on equity in the latest year.58
Neutral
Cash Flow
Cash flow analysis points to volatility. Operating cash flow has fluctuated, with a significant decrease in free cash flow due to higher capital expenditures. The operating cash flow to net income ratio indicates effective cash conversion, but the free cash flow to net income ratio highlights challenges in maintaining liquidity.52
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 599.11M | 626.26M | 553.21M | 388.27M | 377.71M | Gross Profit |
| 139.85M | 153.65M | 121.11M | 59.24M | 67.54M | EBIT |
| 113.62M | 44.94M | 27.00M | 616.00K | -128.04M | EBITDA |
| 86.93M | 88.38M | 59.82M | 35.16M | 32.05M | Net Income Common Stockholders |
| 113.62M | 25.78M | 7.84M | -16.80M | -26.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 36.99M | 52.48M | 13.59M | 31.55M | 67.25M | Total Assets |
| 605.20M | 478.96M | 434.37M | 398.27M | 1.13B | Total Debt |
| 33.90M | 196.80M | 192.36M | 191.47M | 237.46M | Net Debt |
| 33.90M | 144.31M | 178.77M | 159.92M | 170.21M | Total Liabilities |
| 351.89M | 331.63M | 327.97M | 299.70M | 1.06B | Stockholders Equity |
| 254.57M | 148.59M | 107.63M | 99.70M | 71.06M |
| Cash Flow | Free Cash Flow | |||
| -24.16M | 32.05M | -21.10M | -15.88M | 47.53M | Operating Cash Flow |
| 36.52M | 70.21M | 18.96M | 4.66M | 76.91M | Investing Cash Flow |
| -59.06M | -27.03M | -36.50M | -5.17M | 6.04M | Financing Cash Flow |
| 8.87M | -4.66M | 40.00K | -50.05M | -17.63M |
Tetra Technologies Technical Analysis
Negative
3.36
Price Trends
3.96
Negative
3.88
Negative
3.57
Negative
Market Momentum
-0.10
Negative
40.52
Neutral
51.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTI, the sentiment is Negative. The current price of 3.36 is below the 20-day moving average (MA) of 3.41, below the 50-day MA of 3.96, and below the 200-day MA of 3.57, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 51.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTI.
Tetra Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $13.11B | 16.29 | 27.06% | 0.64% | 16.23% | 1403.29% | |
75 Outperform | $21.76B | 8.85 | 25.14% | 2.71% | -0.32% | -3.41% | |
72 Outperform | $3.63B | 16.46 | 19.15% | 1.09% | 3.00% | 6.72% | |
70 Outperform | $1.18B | 12.84 | 8.55% | 2.93% | -12.52% | -52.79% | |
61 Neutral | $477.94M | 4.43 | 56.37% | ― | -4.34% | 312.14% | |
58 Neutral | $9.08B | 5.25 | -7.99% | 7.51% | 0.47% | -64.07% | |
56 Neutral | $717.86M | 22.90 | 13.17% | 0.26% | 2.76% | -23.59% |
* Energy Sector Average
Performance Comparison
TTI
Tetra Technologies
3.36
-1.15
-25.50%
CLB
Core Laboratories
14.99
-2.10
-12.29%
FTI
TechnipFMC
31.69
6.39
25.26%
HAL
Halliburton
25.37
-13.65
-34.98%
RES
RPC
5.50
-2.11
-27.73%
WHD
Cactus
45.83
-3.37
-6.85%
Tetra Technologies Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -18.05% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook for TETRA Technologies, highlighting significant improvements in EBITDA margins, record performance in industrial chemicals, and successful strategic investments. Despite challenges in the Water and Flowback segment and U.S. land operations, the company projects strong cash flow and liquidity for 2025. The positive highlights significantly outweigh the lowlights.Highlights
Improved Adjusted EBITDA Margins
Adjusted EBITDA margins improved to 17% in Q4 2024, up from 16.6% in Q3 and 15.8% in Q4 2023.
Record Industrial Chemicals Performance
Industrial chemicals business achieved its highest revenue and adjusted EBITDA in TETRA's history, with 2024 revenue growth over 2023 of over 9%.
Strategic Investments Yielding Returns
Capital investments in Brazil and the Gulf of America are supporting large projects, expected to return more than dollar for dollar in the first half of 2025.
Significant Deferred Tax Asset Utilization
TETRA eliminated the valuation allowance for deferred taxes, allowing for approximately $345 million of US taxable income to be offset, saving $97.5 million in cash taxes.
Positive Cash Flow Projections for 2025
Projected net income before taxes between $19 million and $34 million and adjusted EBITDA between $55 million and $65 million for the first half of 2025, with potential for over $50 million of free cash flow from the base business in 2025.
Successful Financing and Strong Liquidity
Cash on hand was $37 million, with total liquidity of almost $207 million as of February 2025.
Lowlights
Challenges in Water and Flowback Segment
Water and Flowback segment faced a more severe than normal year-end completion slowdown, impacting EBITDA margins which stood at 13.8%.
Decline in U.S. Land Operations
Weakness in U.S. land operations due to operator consolidation and low natural gas prices, with rig count and frac fleets down by 17% and 30% respectively over the past two years.
Slightly Negative Free Cash Flow in 2024
Base business free cash flow was slightly negative in 2024 due to significant investments in fixed assets and inventory for offshore business.
Company Guidance
During TETRA Technologies' fourth quarter 2024 earnings call, they provided guidance for the first half of 2025, projecting net income before taxes between $19 million and $34 million and adjusted EBITDA between $55 million and $65 million. The company expects revenue and EBITDA to significantly increase year-over-year, driven by strong Gulf of Mexico market activity, a three-well Neptune project, the start of Brazil Deepwater work, and increased Eos Electrolyte deliveries. TETRA anticipates maintaining adjusted EBITDA margins, which improved to 17% in Q4 2024, and plans to continue focusing on produced water treatment and recycling. They aim to generate over $50 million of free cash flow in 2025 from the base business, with capital expenditures projected between $30 and $35 million. The company also highlighted strategic initiatives, including the TETRA OASIS Total Desalination Solution and potential bromine and lithium projects, which are expected to contribute to longer-term growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.