Tetra Technologies Inc. Common Stock (TTI)

FairStock Score: 24/100 — RISKY

Key Financials

Strengths

• Generates $11 million in annual free cash flow (0.9% yield on market cap)

Concerns

• Trades significantly above Graham Number ($1) with negative 698% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Tetra Technologies Inc. Common Stock is a micro-cap industrials company valued at $1.3 billion. Revenue stands at $631 million, though the company is currently unprofitable. From a quality standpoint, Tetra shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and Altman Z-Score of 2.1 in the grey zone. On valuation, the stock is commanding a steep 317.7x multiple, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 9.1% and profit growth of -116.1%. Our composite FairStock Score of 24/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $11 million in annual free cash flow (0.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 318x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer