Tetra Technologies (TTI) AI Stock Analysis

• Market Cap: $1.52B
• Dividend Yield: N/A
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.21
• Revenue Growth: 0.17%
• EPS Growth: 7307.20%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.04
• Shares Outstanding: 133,746,720
• 10 Day Avg. Volume: 4,141,466
• 30 Day Avg. Volume: 2,391,172
• PEG Ratio: 0.01
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -19.45
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 10.54
• Enterprise Value/Ebitda: 17.45
• 1Y Price Target: $11.75
• Price Target Upside: -0.93% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $13.00 ▲(9.61% Upside)

The score is driven primarily by strong profitability and a low-leverage balance sheet, plus a constructive earnings outlook with raised EBITDA guidance. Offsetting factors include weaker free cash flow generation and technically stretched momentum signals despite an overall uptrend, while valuation is moderately supportive on a 10.65 P/E.

Positive Factors

Strong Profitability

Sustained high gross and net margins indicate durable pricing power and operational efficiency in specialty fluids and services. Strong margins support reinvestment in growth initiatives, buffer commodity-cycle volatility, and underpin long-term return generation for shareholders.

Low Leverage and High ROE

Very low leverage and an elevated ROE provide financial flexibility to fund capital projects and international expansion without heavy debt, reducing insolvency risk during downturns and enabling strategic investments to pursue One TETRA 2030 objectives.

High-margin Completion Fluids Growth & International Wins

Rapid, high-margin growth in completion fluids—driven by deepwater activity—and new international contracts materially strengthen franchise economics. This enlarges higher-return revenue streams and diversifies geography, supporting sustainable EBITDA expansion.

Negative Factors

Weak Free Cash Flow Conversion

Very low FCF conversion and negative FCF growth constrain the company's ability to self-fund capital-intensive projects like the bromine plant, reduce leverage, or return capital. Reliance on external funding raises execution and financing risk over the medium term.

Declining Water & Flowback Segment

Material YoY revenue decline in the water services segment weakens revenue diversification and recurring-service cash flows. If prolonged, this reduces resilience to onshore volatility and may force higher-cost reallocation of capital to stabilize segment performance.

Exposure to U.S. Onshore Activity Weakness

Significant reductions in U.S. frac activity translate directly into lower demand for completion and water services, creating revenue volatility. Until international expansions scale, U.S. onshore exposure leaves earnings and utilization rates vulnerable to cyclical swings.

Tetra Technologies Business Overview & Revenue Model

Company Description

TETRA Technologies, Inc., together with its subsidiaries, operates as a diversified oil and gas services company. It operates through Completion Fluids & Products Division and Water & Flowback Services segments. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States and Mexico, as well as in various basins in Latin America, Africa, Europe, and the Middle East. The company was incorporated in 1981 and is headquartered in The Woodlands, Texas.

How the Company Makes Money

Tetra Technologies generates revenue through multiple streams, primarily by providing specialty fluids and services designed for the oil and gas industry. Key revenue streams include the sale of completion fluids and other associated services that enhance production efficiency. Additionally, TTI earns money through its water management segment, which provides services related to water sourcing, treatment, and disposal for hydraulic fracturing operations. Significant partnerships with major oil and gas companies further bolster Tetra's revenue potential, as these collaborations often lead to long-term contracts and bulk service agreements. The company also benefits from market trends such as increased exploration activities and a growing emphasis on sustainable practices within the energy sector.

Tetra Technologies Financial Statement Overview

Summary

Profitability is strong (TTM gross margin 25.64%, net margin 19.75%) and leverage is low (debt-to-equity 0.11), but cash conversion is weaker with low free-cash-flow to net income (0.08) and negative free cash flow growth.

Income Statement

Tetra Technologies shows strong profitability with a TTM gross profit margin of 25.64% and a net profit margin of 19.75%. The company has demonstrated consistent revenue growth, with a notable increase of 1.9% in the TTM period. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the revenue growth rate has fluctuated over the years, which could pose a risk if not stabilized.

Balance Sheet

The company's balance sheet reflects a solid debt-to-equity ratio of 0.11 in the TTM period, indicating low leverage. Return on equity is impressive at 43.84%, showcasing strong profitability relative to shareholder equity. However, the equity ratio is not explicitly provided, and historical high leverage in previous years suggests potential volatility in financial stability.

Cash Flow

Operating cash flow is robust, with a TTM operating cash flow to net income ratio of 0.56. However, free cash flow growth has been negative, and the free cash flow to net income ratio is relatively low at 0.08, indicating potential challenges in generating free cash flow. Historical fluctuations in free cash flow growth highlight the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	618.75M	599.11M	626.26M	553.21M	388.27M	377.71M
Gross Profit	158.66M	139.96M	141.64M	113.53M	59.82M	67.97M
EBITDA	95.80M	86.93M	88.38M	59.82M	35.16M	32.05M
Net Income	122.23M	108.28M	25.78M	7.84M	-16.80M	-51.14M
Balance Sheet
Total Assets	655.17M	718.58M	499.52M	457.59M	398.27M	1.13B
Cash, Cash Equivalents and Short-Term Investments	67.20M	37.21M	52.48M	13.59M	31.55M	67.32M
Total Debt	214.60M	221.39M	196.80M	194.15M	191.47M	246.26M
Total Liabilities	359.75M	465.28M	352.19M	351.19M	299.70M	1.06B
Stockholders Equity	296.69M	254.57M	148.59M	107.63M	99.70M	-9.64M
Cash Flow
Free Cash Flow	6.20M	-24.16M	32.05M	-21.10M	-15.88M	47.53M
Operating Cash Flow	74.27M	36.52M	70.21M	18.96M	4.66M	76.91M
Investing Cash Flow	-48.64M	-59.06M	-27.03M	-36.50M	-5.17M	6.04M
Financing Cash Flow	-7.68M	8.87M	-4.66M	40.00K	-50.05M	-17.63M

Tetra Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTI, the sentiment is Positive. The current price of 11.86 is above the 20-day moving average (MA) of 10.90, above the 50-day MA of 9.47, and above the 200-day MA of 5.70, indicating a bullish trend. The MACD of 0.65 indicates Positive momentum. The RSI at 60.51 is Neutral, neither overbought nor oversold. The STOCH value of 48.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTI.

Tetra Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTI	75 Outperform	$1.52B	12.90	53.71%	―	0.17%	7307.20%
CLB	72 Outperform	$909.85M	28.29	12.31%	0.24%	-1.02%	6.34%
HLX	71 Outperform	$1.17B	28.54	2.71%	―	-1.95%	530.91%
RES	66 Neutral	$1.47B	30.21	4.31%	2.94%	4.20%	-59.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PUMP	58 Neutral	$1.19B	-71.27	-2.05%	―	-11.65%	87.57%
ACDC	47 Neutral	$942.34M	-2.66	-31.46%	―	-11.92%	-53.72%