Tetra Technologies (TTI) AI Stock Analysis

• Market Cap: $635.74M
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.96
• Revenue Growth: -3.23%
• EPS Growth: 1031.00%
• Country: US
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 73
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.09
• Shares Outstanding: 133,279,720
• 10 Day Avg. Volume: 1,205,198
• 30 Day Avg. Volume: 1,703,659
• 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: 0.94
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 3.80
• Enterprise Value/Ebitda: 6.25
• 1Y Price Target: $5.50
• Price Target Upside: 17.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 82 Outperform
• Price Target: $5.00 ▲(6.61% Upside)

Tetra Technologies receives a strong score due to its robust financial performance and strategic growth initiatives highlighted in the earnings call. The stock's undervaluation and bullish technical indicators further support its positive outlook. However, attention to cash flow management and potential overbought conditions are necessary considerations.

Positive Factors

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.

Technological Innovation

Launched TETRA Oasis TDS, an end-to-end water treatment and desalination technology for beneficial re-use and mineral extraction applications.

Negative Factors

Service Sector Challenges

Strong activity in Completion Fluids will offset softness in Water & Flowback Services.

Tetra Technologies Business Overview & Revenue Model

Company Description

Tetra Technologies, Inc. (TTI) is a diversified energy services company primarily focused on providing services to the oil and gas industry. The company operates through three main segments: Water & Environmental Services, Production Testing Services, and Specialty Chemicals. TTI's core products and services include water management solutions, flowback and production testing, and the production of specialty chemicals that enhance oil recovery and improve operational efficiencies for its clients.

How the Company Makes Money

Tetra Technologies generates revenue through multiple key streams. The Water & Environmental Services segment earns income by offering water management solutions, which include sourcing, transporting, and treating water for hydraulic fracturing operations. The Production Testing Services segment provides flowback and production testing services that are crucial for assessing the performance of oil and gas wells, generating revenue from both one-time contracts and ongoing service agreements. Additionally, the Specialty Chemicals segment produces and sells chemicals that facilitate enhanced oil recovery and operational efficiencies, contributing to TTI's earnings. Significant partnerships with major oil and gas operators also bolster revenue, as TTI provides essential services that are integral to their operations. Overall, Tetra's revenue model is built on a combination of direct service contracts, product sales, and strategic collaborations with industry players.

Tetra Technologies Financial Statement Overview

Summary

Tetra Technologies shows strong revenue growth and profitability margins. However, leverage remains a concern due to a high debt-to-equity ratio, and cash flow management requires attention to achieve positive free cash flow.

Income Statement

Tetra Technologies has demonstrated strong revenue growth over the years, with a notable improvement in net income from a loss in previous years to a positive figure in TTM. Gross profit margins are healthy at around 25%, and EBIT and EBITDA margins indicate efficient operations. However, there was a slight decline in total revenue in the TTM compared to 2023, which should be monitored.

Balance Sheet

The company's balance sheet shows a stable increase in shareholder equity, which is a positive sign. The debt-to-equity ratio has been relatively high, indicating significant leverage, which poses potential risks. The equity ratio has improved, suggesting better asset management. However, the company should focus on reducing its debt levels.

Cash Flow

Cash flow from operations has shown improvement, but free cash flow remains negative, indicating that capital expenditures are currently outpacing cash generated from operations. The operating cash flow to net income ratio is positive, which suggests good cash generation relative to profits. However, the company should aim to improve its free cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	607.22M	599.11M	626.26M	553.21M	388.27M	377.71M
Gross Profit	156.76M	139.96M	141.64M	113.53M	59.82M	67.97M
EBITDA	95.27M	86.93M	88.38M	59.82M	35.16M	32.05M
Net Income	115.08M	108.28M	25.78M	7.84M	-16.80M	-51.14M
Balance Sheet
Total Assets	645.58M	718.58M	499.52M	457.59M	398.27M	1.13B
Cash, Cash Equivalents and Short-Term Investments	68.80M	37.21M	52.48M	13.59M	31.55M	67.32M
Total Debt	216.92M	221.39M	196.80M	194.15M	191.47M	246.26M
Total Liabilities	355.96M	465.28M	352.19M	351.19M	299.70M	1.06B
Stockholders Equity	290.88M	254.57M	148.59M	107.63M	99.70M	-9.64M
Cash Flow
Free Cash Flow	10.87M	-24.16M	32.05M	-21.10M	-15.88M	47.53M
Operating Cash Flow	77.77M	36.52M	70.21M	18.96M	4.66M	76.91M
Investing Cash Flow	-46.29M	-59.06M	-27.03M	-36.50M	-5.17M	6.04M
Financing Cash Flow	-6.69M	8.87M	-4.66M	40.00K	-50.05M	-17.63M

Tetra Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.69 is above the 20-day moving average (MA) of 4.33, above the 50-day MA of 3.89, and above the 200-day MA of 3.60, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 69.13 is Neutral, neither overbought nor oversold. The STOCH value of 80.49 is Negative, 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	82 Outperform	$635.74M	5.42	54.03%	―	-3.23%	1031.00%
NGS	74 Outperform	$339.90M	19.03	7.00%	0.38%	14.77%	34.74%
RNGR	74 Outperform	$313.24M	13.89	8.34%	1.63%	-3.22%	55.46%
FTK	66 Neutral	$357.70M	25.53	15.85%	―	21.72%	98.73%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
FET	60 Neutral	$316.87M	―	-28.21%	―	3.86%	-294.41%
OIS	53 Neutral	$348.41M	49.07	0.95%	―	-12.15%	―

Tetra Technologies Corporate Events

Tetra Technologies Holds Annual Meeting, Elects Board Members

On April 16, 2025, TETRA Technologies, Inc. announced the approval of its Third Amended and Restated 2018 Equity Incentive Plan, which includes an increase of 4,000,000 shares of common stock available for issuance and enhancements to governance provisions. The plan now totals 20,365,000 shares available for issuance. At the Annual Meeting held on June 12, 2025, stockholders voted on several key matters, including the election of eight board members, approval of executive compensation, ratification of Grant Thornton LLP as auditors, and the approval of the Amended Plan. John F. Glick was reappointed as Chair of the Board, and board committees were reconstituted.