Tetra Technologies operates as a diversified oil and gas services company. It operates through four divisions: Fluids, Production Testing, Compression, and Offshore. The company was founded in 1981 and is based in The Woodlands, Texas.
TTI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Tetra Technologies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Tetra Technologies Inc ranked in the 80th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 525.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Tetra Technologies Inc ended up being:
9% of the company's capital comes from equity, which is greater than merely 2.78% of stocks in our cash flow based forecasting set.
Tetra Technologies Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.04. This coverage rate is greater than that of merely 20.27% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Tetra Technologies Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Energy), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TOT, BOOM, CLNE, SOI, and MPLX can be thought of as valuation peers to TTI, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
This article was highlighted for PRO subscribers, Seeking Alpha’s service for professional investors. Find out how you can get the best content on Seeking Alpha here. Business Overview: TETRA Technologies (TTI) is an oil and gas services company and provider of calcium chloride and bromide products to the industrial market....
TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) announced today that it will release second quarter 2020 results before the opening of the market on Tuesday, August 4, 2020. Following the release, TETRA will host a conference call at 9:30 a.m. Eastern Time to discuss the results. Brady M. Murphy, President and CEO, and Elijio V. Serrano, Senior Vice President and CFO, will host the call.
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Introduction I have been one of the most frequent writers on TETRA Technologies (TTI) over the last several years, with a number of bullish articles. That is probably due to my extreme familiarity with the company. They are in the fluids business, and I am the FLUIDSDOC. I am sure...