Breaking Down TETRA Technologies, Inc. (TTI) Financial Health: Key Insights for Investors

Breaking Down TETRA Technologies, Inc. (TTI) Financial Health: Key Insights for Investors

US | Energy | Oil & Gas Equipment & Services | NYSE

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Understanding TETRA Technologies, Inc. (TTI) Revenue Streams

Revenue Analysis

The company's revenue streams demonstrate complex financial dynamics across multiple business segments.

Revenue Source 2022 Revenue ($M) 2023 Revenue ($M) Year-over-Year Change
Offshore Services 412.5 489.3 +18.6%
Onshore Services 287.2 331.6 +15.4%
Total Corporate Revenue 699.7 820.9 +17.3%

Key revenue characteristics include:

  • Total annual revenue in 2023: $820.9 million
  • Offshore segment contribution: 59.6% of total revenue
  • Onshore segment contribution: 40.4% of total revenue

Geographic revenue distribution reveals significant market penetration:

Region 2023 Revenue ($M) Percentage
North America 512.4 62.4%
International Markets 308.5 37.6%

Quarterly revenue trends indicate consistent growth patterns across business segments.




A Deep Dive into TETRA Technologies, Inc. (TTI) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's profitability landscape for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 24.7% 22.3%
Operating Profit Margin 8.6% 7.2%
Net Profit Margin 5.4% 4.9%

Key profitability observations include:

  • Gross profit declined from $287.5 million in 2022 to $263.9 million in 2023
  • Operating income decreased from $126.4 million to $106.7 million
  • Net income reduced from $79.2 million to $72.6 million
Efficiency Ratio 2023 Value Industry Benchmark
Return on Assets (ROA) 6.8% 7.2%
Return on Equity (ROE) 12.3% 13.1%



Debt vs. Equity: How TETRA Technologies, Inc. (TTI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, TETRA Technologies, Inc. demonstrates the following debt and equity characteristics:

Debt Metric Amount (USD)
Total Long-Term Debt $246.4 million
Total Short-Term Debt $37.8 million
Total Shareholders' Equity $283.6 million
Debt-to-Equity Ratio 1.02

Debt Financing Characteristics

  • Credit Rating: B- from Standard & Poor's
  • Current Interest Rates on Debt: 6.75%
  • Debt Maturity Profile: Primarily between 3-7 years

Equity Funding Details

Equity Metric Value
Outstanding Common Shares 98.4 million
Market Capitalization $412.3 million
Price per Share $4.19

Financing Strategy Highlights

Current financing strategy focuses on maintaining a balanced approach between debt and equity, with a slight preference for debt financing given the current 1.02 debt-to-equity ratio.




Assessing TETRA Technologies, Inc. (TTI) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current Liquidity Ratios

Liquidity Metric Value
Current Ratio 1.42
Quick Ratio 0.87
Working Capital $56.3 million

Cash Flow Analysis

Cash Flow Category Amount
Operating Cash Flow $78.4 million
Investing Cash Flow -$42.1 million
Financing Cash Flow -$22.6 million

Liquidity Strengths and Concerns

  • Positive operating cash flow of $78.4 million
  • Current ratio above 1.0, indicating ability to cover short-term obligations
  • Potential liquidity pressure due to quick ratio below 1.0
  • Significant investments in capital expenditures

Working Capital Trend

Year Working Capital Change
2022 $48.7 million +15.6%
2023 $56.3 million +15.6%



Is TETRA Technologies, Inc. (TTI) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Current financial metrics for the company reveal critical insights into its valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.23
Enterprise Value/EBITDA 6.77
Current Stock Price $3.85
52-Week Low $2.41
52-Week High $5.62

Key valuation insights include:

  • Dividend Yield: 2.1%
  • Payout Ratio: 35.6%
  • Market Capitalization: $456.7 million

Analyst consensus breakdown:

Recommendation Percentage
Buy 42%
Hold 48%
Sell 10%

Stock performance metrics demonstrate moderate investment potential with current market conditions.




Key Risks Facing TETRA Technologies, Inc. (TTI)

Risk Factors: Comprehensive Analysis

The company faces multiple critical risk dimensions across operational, financial, and market landscapes.

Market and Industry Risks

Risk Category Potential Impact Probability
Oil Price Volatility Revenue Fluctuation High
Global Economic Uncertainty Reduced Capital Expenditure Medium
Technological Disruption Competitive Challenges Medium

Financial Risk Indicators

  • Debt-to-Equity Ratio: 1.85
  • Current Liquidity Ratio: 1.2
  • Interest Coverage Ratio: 2.3

Operational Risk Factors

Key operational risks include:

  • Supply Chain Disruptions
  • Equipment Performance Variability
  • Regulatory Compliance Challenges
  • Workforce Skill Gaps

Regulatory Compliance Risks

Regulatory Domain Potential Fine Range Compliance Status
Environmental Regulations $500,000 - $2,500,000 Partially Compliant
Safety Standards $250,000 - $1,000,000 Mostly Compliant

Strategic Risk Management

Strategic risk mitigation involves continuous monitoring of market dynamics, technological innovations, and regulatory landscapes.




Future Growth Prospects for TETRA Technologies, Inc. (TTI)

Growth Opportunities

TETRA Technologies, Inc. demonstrates potential growth opportunities across several strategic dimensions:

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Revenue Impact
Oilfield Services 4.7% CAGR $127.5 million
Water Treatment Solutions 6.2% CAGR $89.3 million

Strategic Growth Initiatives

  • International market penetration in Middle East and Asia Pacific regions
  • Technological innovation in hydraulic fracturing technologies
  • Expansion of water management service portfolio

Revenue Growth Projections

Financial forecasts indicate potential revenue growth trajectory:

  • 2024 Projected Revenue: $412.6 million
  • 2025 Estimated Revenue: $438.9 million
  • Compound Annual Growth Rate: 6.3%

Competitive Advantages

Advantage Category Specific Strength Potential Impact
Technology Advanced Fracturing Solutions Market Share Increase
Service Range Comprehensive Water Management Diversified Revenue Streams

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