TETRA Technologies Inc (TTI) stock analysis

P/E above its 5-year median

TETRA Technologies's P/E of 104.5 is above its own 5-year median of 35.3.

P/E above the industry

TETRA Technologies's P/E of 104.5 is above the Crude Petroleum and Natural Gas median of 10.4.

EV/EBITDA above its 5-year median

TETRA Technologies's EV/EBITDA of 11.9 is above its 5-year median of 9.7.

P/B above the industry

TETRA Technologies's price-to-book of 2.23 is above the Crude Petroleum and Natural Gas median of 1.33.

Trading above fair value

The share price of $6.27 is above our fair value estimate of $2.93.

Margin of safety under 20%

The price is 114% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -30.7% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 6.1% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.7%.

Guidance issued

The latest outlook (2026 Adjusted EBITDA margins for Completion Fluids & Products, Apr 29, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 22.5% over the last twelve months, against 25.6% a year earlier.

Return on equity under 15%

Return on equity was 2.5% over the last twelve months and averaged 62.4% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.1%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

TETRA Technologies's return on equity of 2.5% is below the Crude Petroleum and Natural Gas median of 5.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 1.4% over the last twelve months, against a 5-year average of 10.1%.

Net margin below the industry

TETRA Technologies's net margin of 1.4% is below the Crude Petroleum and Natural Gas median of 3.8%.

High debt

Debt is 44.2% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 34.3% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.43 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.51; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

TETRA Technologies has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.