Intrinsic value of Tetra Technologies - TTI

Previous Close

$2.58

  Intrinsic Value

$0.31

stock screener

  Rating & Target

str. sell

-88%

Previous close

$2.58

 
Intrinsic value

$0.31

 
Up/down potential

-88%

 
Rating

str. sell

We calculate the intrinsic value of TTI stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  44.50
  40.55
  37.00
  33.80
  30.92
  28.32
  25.99
  23.89
  22.00
  20.30
  18.77
  17.40
  16.16
  15.04
  14.04
  13.13
  12.32
  11.59
  10.93
  10.34
  9.80
  9.32
  8.89
  8.50
  8.15
  7.84
  7.55
  7.30
  7.07
  6.86
Revenue, $m
  1,185
  1,666
  2,283
  3,054
  3,998
  5,131
  6,464
  8,008
  9,771
  11,754
  13,961
  16,390
  19,037
  21,901
  24,975
  28,255
  31,735
  35,413
  39,283
  43,343
  47,592
  52,028
  56,654
  61,470
  66,480
  71,689
  77,103
  82,729
  88,576
  94,653
Variable operating expenses, $m
  1,471
  2,065
  2,828
  3,781
  4,949
  6,349
  7,998
  9,907
  12,086
  14,539
  17,261
  20,264
  23,538
  27,078
  30,879
  34,934
  39,238
  43,785
  48,570
  53,590
  58,843
  64,329
  70,047
  76,002
  82,197
  88,637
  95,331
  102,287
  109,516
  117,030
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  1,471
  2,065
  2,828
  3,781
  4,949
  6,349
  7,998
  9,907
  12,086
  14,539
  17,261
  20,264
  23,538
  27,078
  30,879
  34,934
  39,238
  43,785
  48,570
  53,590
  58,843
  64,329
  70,047
  76,002
  82,197
  88,637
  95,331
  102,287
  109,516
  117,030
Operating income, $m
  -286
  -399
  -545
  -727
  -951
  -1,218
  -1,534
  -1,899
  -2,315
  -2,784
  -3,301
  -3,875
  -4,501
  -5,178
  -5,904
  -6,680
  -7,503
  -8,372
  -9,287
  -10,247
  -11,251
  -12,300
  -13,394
  -14,532
  -15,717
  -16,948
  -18,228
  -19,558
  -20,940
  -22,377
EBITDA, $m
  -118
  -166
  -227
  -304
  -398
  -510
  -643
  -797
  -972
  -1,170
  -1,389
  -1,631
  -1,894
  -2,179
  -2,485
  -2,811
  -3,158
  -3,524
  -3,909
  -4,313
  -4,735
  -5,177
  -5,637
  -6,116
  -6,615
  -7,133
  -7,672
  -8,231
  -8,813
  -9,418
Interest expense (income), $m
  55
  57
  102
  161
  236
  330
  445
  583
  746
  935
  1,150
  1,392
  1,661
  1,958
  2,281
  2,630
  3,006
  3,406
  3,831
  4,280
  4,752
  5,248
  5,766
  6,308
  6,872
  7,460
  8,072
  8,707
  9,368
  10,055
  10,769
Earnings before tax, $m
  -343
  -501
  -706
  -963
  -1,281
  -1,663
  -2,117
  -2,645
  -3,250
  -3,934
  -4,692
  -5,536
  -6,458
  -7,458
  -8,535
  -9,685
  -10,909
  -12,203
  -13,567
  -14,999
  -16,499
  -18,066
  -19,701
  -21,404
  -23,177
  -25,020
  -26,936
  -28,927
  -30,995
  -33,146
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -343
  -501
  -706
  -963
  -1,281
  -1,663
  -2,117
  -2,645
  -3,250
  -3,934
  -4,692
  -5,536
  -6,458
  -7,458
  -8,535
  -9,685
  -10,909
  -12,203
  -13,567
  -14,999
  -16,499
  -18,066
  -19,701
  -21,404
  -23,177
  -25,020
  -26,936
  -28,927
  -30,995
  -33,146

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  1,891
  2,657
  3,640
  4,871
  6,377
  8,183
  10,309
  12,773
  15,583
  18,747
  22,266
  26,140
  30,363
  34,929
  39,832
  45,063
  50,615
  56,480
  62,652
  69,128
  75,904
  82,980
  90,357
  98,038
  106,029
  114,337
  122,971
  131,945
  141,269
  150,961
Adjusted assets (=assets-cash), $m
  1,891
  2,657
  3,640
  4,871
  6,377
  8,183
  10,309
  12,773
  15,583
  18,747
  22,266
  26,140
  30,363
  34,929
  39,832
  45,063
  50,615
  56,480
  62,652
  69,128
  75,904
  82,980
  90,357
  98,038
  106,029
  114,337
  122,971
  131,945
  141,269
  150,961
Revenue / Adjusted assets
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
  0.627
Average production assets, $m
  1,315
  1,848
  2,531
  3,387
  4,434
  5,690
  7,169
  8,881
  10,836
  13,036
  15,483
  18,176
  21,112
  24,288
  27,697
  31,334
  35,195
  39,273
  43,565
  48,068
  52,779
  57,699
  62,829
  68,170
  73,726
  79,503
  85,507
  91,747
  98,231
  104,970
Working capital, $m
  255
  358
  491
  657
  860
  1,103
  1,390
  1,722
  2,101
  2,527
  3,002
  3,524
  4,093
  4,709
  5,370
  6,075
  6,823
  7,614
  8,446
  9,319
  10,232
  11,186
  12,181
  13,216
  14,293
  15,413
  16,577
  17,787
  19,044
  20,350
Total debt, $m
  1,119
  1,764
  2,591
  3,626
  4,892
  6,411
  8,200
  10,271
  12,635
  15,296
  18,255
  21,513
  25,064
  28,905
  33,028
  37,427
  42,096
  47,029
  52,220
  57,666
  63,365
  69,315
  75,519
  81,979
  88,699
  95,686
  102,948
  110,495
  118,337
  126,488
Total liabilities, $m
  1,590
  2,235
  3,062
  4,096
  5,363
  6,882
  8,670
  10,742
  13,105
  15,766
  18,726
  21,983
  25,535
  29,376
  33,499
  37,898
  42,567
  47,499
  52,691
  58,137
  63,835
  69,786
  75,990
  82,450
  89,170
  96,157
  103,419
  110,965
  118,808
  126,958
Total equity, $m
  301
  423
  579
  774
  1,014
  1,301
  1,639
  2,031
  2,478
  2,981
  3,540
  4,156
  4,828
  5,554
  6,333
  7,165
  8,048
  8,980
  9,962
  10,991
  12,069
  13,194
  14,367
  15,588
  16,859
  18,180
  19,552
  20,979
  22,462
  24,003
Total liabilities and equity, $m
  1,891
  2,658
  3,641
  4,870
  6,377
  8,183
  10,309
  12,773
  15,583
  18,747
  22,266
  26,139
  30,363
  34,930
  39,832
  45,063
  50,615
  56,479
  62,653
  69,128
  75,904
  82,980
  90,357
  98,038
  106,029
  114,337
  122,971
  131,944
  141,270
  150,961
Debt-to-equity ratio
  3.720
  4.180
  4.480
  4.680
  4.830
  4.930
  5.000
  5.060
  5.100
  5.130
  5.160
  5.180
  5.190
  5.200
  5.210
  5.220
  5.230
  5.240
  5.240
  5.250
  5.250
  5.250
  5.260
  5.260
  5.260
  5.260
  5.270
  5.270
  5.270
  5.270
Adjusted equity ratio
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159
  0.159

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -343
  -501
  -706
  -963
  -1,281
  -1,663
  -2,117
  -2,645
  -3,250
  -3,934
  -4,692
  -5,536
  -6,458
  -7,458
  -8,535
  -9,685
  -10,909
  -12,203
  -13,567
  -14,999
  -16,499
  -18,066
  -19,701
  -21,404
  -23,177
  -25,020
  -26,936
  -28,927
  -30,995
  -33,146
Depreciation, amort., depletion, $m
  168
  234
  318
  424
  553
  708
  890
  1,102
  1,343
  1,615
  1,911
  2,244
  2,606
  2,999
  3,419
  3,868
  4,345
  4,848
  5,378
  5,934
  6,516
  7,123
  7,757
  8,416
  9,102
  9,815
  10,556
  11,327
  12,127
  12,959
Funds from operations, $m
  -175
  -268
  -388
  -540
  -728
  -956
  -1,227
  -1,543
  -1,907
  -2,319
  -2,781
  -3,292
  -3,852
  -4,460
  -5,115
  -5,817
  -6,564
  -7,354
  -8,188
  -9,065
  -9,983
  -10,943
  -11,945
  -12,988
  -14,075
  -15,205
  -16,379
  -17,600
  -18,868
  -20,187
Change in working capital, $m
  78
  103
  133
  166
  203
  243
  287
  332
  379
  427
  474
  522
  569
  616
  661
  705
  748
  791
  832
  873
  913
  954
  994
  1,035
  1,077
  1,120
  1,164
  1,210
  1,257
  1,307
Cash from operations, $m
  -254
  -371
  -520
  -705
  -931
  -1,199
  -1,513
  -1,875
  -2,286
  -2,746
  -3,255
  -3,814
  -4,421
  -5,076
  -5,776
  -6,522
  -7,312
  -8,145
  -9,020
  -9,938
  -10,896
  -11,897
  -12,939
  -14,024
  -15,152
  -16,325
  -17,543
  -18,809
  -20,125
  -21,493
Maintenance CAPEX, $m
  -112
  -162
  -228
  -313
  -418
  -547
  -702
  -885
  -1,096
  -1,338
  -1,609
  -1,911
  -2,244
  -2,606
  -2,999
  -3,419
  -3,868
  -4,345
  -4,848
  -5,378
  -5,934
  -6,516
  -7,123
  -7,757
  -8,416
  -9,102
  -9,815
  -10,556
  -11,327
  -12,127
New CAPEX, $m
  -405
  -533
  -684
  -855
  -1,047
  -1,256
  -1,479
  -1,713
  -1,954
  -2,200
  -2,447
  -2,693
  -2,937
  -3,175
  -3,409
  -3,637
  -3,860
  -4,078
  -4,292
  -4,503
  -4,712
  -4,920
  -5,129
  -5,341
  -5,556
  -5,777
  -6,004
  -6,239
  -6,484
  -6,739
Cash from investing activities, $m
  -517
  -695
  -912
  -1,168
  -1,465
  -1,803
  -2,181
  -2,598
  -3,050
  -3,538
  -4,056
  -4,604
  -5,181
  -5,781
  -6,408
  -7,056
  -7,728
  -8,423
  -9,140
  -9,881
  -10,646
  -11,436
  -12,252
  -13,098
  -13,972
  -14,879
  -15,819
  -16,795
  -17,811
  -18,866
Free cash flow, $m
  -771
  -1,066
  -1,432
  -1,873
  -2,396
  -3,002
  -3,695
  -4,473
  -5,336
  -6,283
  -7,312
  -8,419
  -9,602
  -10,857
  -12,184
  -13,579
  -15,041
  -16,568
  -18,161
  -19,819
  -21,542
  -23,333
  -25,192
  -27,122
  -29,124
  -31,204
  -33,363
  -35,605
  -37,936
  -40,359
Issuance/(repayment) of debt, $m
  490
  645
  827
  1,035
  1,266
  1,519
  1,789
  2,072
  2,364
  2,661
  2,960
  3,257
  3,552
  3,841
  4,123
  4,399
  4,669
  4,932
  5,191
  5,446
  5,699
  5,951
  6,204
  6,460
  6,720
  6,987
  7,262
  7,546
  7,842
  8,151
Issuance/(repurchase) of shares, $m
  436
  623
  862
  1,159
  1,520
  1,951
  2,455
  3,037
  3,697
  4,437
  5,252
  6,152
  7,130
  8,185
  9,314
  10,517
  11,791
  13,135
  14,548
  16,029
  17,576
  19,191
  20,874
  22,626
  24,447
  26,341
  28,309
  30,353
  32,478
  34,687
Cash from financing (excl. dividends), $m  
  926
  1,268
  1,689
  2,194
  2,786
  3,470
  4,244
  5,109
  6,061
  7,098
  8,212
  9,409
  10,682
  12,026
  13,437
  14,916
  16,460
  18,067
  19,739
  21,475
  23,275
  25,142
  27,078
  29,086
  31,167
  33,328
  35,571
  37,899
  40,320
  42,838
Total cash flow (excl. dividends), $m
  154
  201
  257
  320
  390
  467
  549
  635
  724
  814
  900
  990
  1,080
  1,168
  1,254
  1,338
  1,420
  1,500
  1,578
  1,656
  1,733
  1,809
  1,886
  1,964
  2,043
  2,124
  2,208
  2,294
  2,384
  2,478
Retained Cash Flow (-), $m
  -436
  -623
  -862
  -1,159
  -1,520
  -1,951
  -2,455
  -3,037
  -3,697
  -4,437
  -5,252
  -6,152
  -7,130
  -8,185
  -9,314
  -10,517
  -11,791
  -13,135
  -14,548
  -16,029
  -17,576
  -19,191
  -20,874
  -22,626
  -24,447
  -26,341
  -28,309
  -30,353
  -32,478
  -34,687
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -282
  -422
  -605
  -839
  -1,130
  -1,483
  -1,906
  -2,401
  -2,973
  -3,623
  -4,352
  -5,161
  -6,050
  -7,017
  -8,061
  -9,179
  -10,372
  -11,636
  -12,970
  -14,373
  -15,844
  -17,382
  -18,988
  -20,662
  -22,404
  -24,216
  -26,101
  -28,059
  -30,094
  -32,209
Discount rate, %
  10.70
  11.24
  11.80
  12.39
  13.01
  13.66
  14.34
  15.06
  15.81
  16.60
  17.43
  18.30
  19.22
  20.18
  21.19
  22.24
  23.36
  24.52
  25.75
  27.04
  28.39
  29.81
  31.30
  32.87
  34.51
  36.23
  38.05
  39.95
  41.95
  44.04
PV of cash for distribution, $m
  -254
  -341
  -433
  -526
  -613
  -688
  -746
  -782
  -793
  -780
  -743
  -687
  -616
  -535
  -451
  -369
  -292
  -224
  -167
  -120
  -83
  -56
  -36
  -23
  -14
  -8
  -4
  -2
  -1
  -1
Current shareholders' claim on cash, %
  42.7
  18.3
  7.9
  3.5
  1.5
  0.7
  0.3
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

TETRA Technologies, Inc. is an oil and gas services company. The Company focuses on completion fluids and associated products and services, water management, production well testing, offshore rig cooling, compression services and equipment, and offshore services, such as decommissioning and diving. It is composed of five segments organized into four divisions: Fluids, Production Testing, Compression and Offshore. The Fluids division manufactures and markets clear brine fluids, additives and associated products and services to the oil and gas industry. Its Production Testing division provides frac flowback services, production well testing services, offshore rig cooling and other associated services in various oil and gas producing regions. The Compression division provides compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Offshore division consists of two operating segments: Offshore Services and Maritech.

FINANCIAL RATIOS  of  Tetra Technologies (TTI)

Valuation Ratios
P/E Ratio -1.8
Price to Sales 0.4
Price to Book 1.3
Price to Tangible Book
Price to Cash Flow 5.5
Price to Free Cash Flow 9
Growth Rates
Sales Growth Rate -38.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -82.6%
Cap. Spend. - 3 Yr. Gr. Rate -27%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity 299.6%
Total Debt to Equity 299.6%
Interest Coverage -3
Management Effectiveness
Return On Assets -7.2%
Ret/ On Assets - 3 Yr. Avg. -6.4%
Return On Total Capital -15.9%
Ret/ On T. Cap. - 3 Yr. Avg. -13.8%
Return On Equity -67.8%
Return On Equity - 3 Yr. Avg. -48.6%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 10.1%
Gross Margin - 3 Yr. Avg. 14.3%
EBITDA Margin -7.5%
EBITDA Margin - 3 Yr. Avg. -2.6%
Operating Margin -24.6%
Oper. Margin - 3 Yr. Avg. -16%
Pre-Tax Margin -34.1%
Pre-Tax Margin - 3 Yr. Avg. -22.2%
Net Profit Margin -23.2%
Net Profit Margin - 3 Yr. Avg. -16.7%
Effective Tax Rate -0.8%
Eff/ Tax Rate - 3 Yr. Avg. -3.5%
Payout Ratio 0%

TTI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TTI stock intrinsic value calculation we used $820.378 million for the last fiscal year's total revenue generated by Tetra Technologies. The default revenue input number comes from 0001 income statement of Tetra Technologies. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our TTI stock valuation model: a) initial revenue growth rate of 44.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 10.7%, whose default value for TTI is calculated based on our internal credit rating of Tetra Technologies, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Tetra Technologies.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of TTI stock the variable cost ratio is equal to 124.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for TTI stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 9.1% for Tetra Technologies.

Corporate tax rate of 27% is the nominal tax rate for Tetra Technologies. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the TTI stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for TTI are equal to 110.9%.

Life of production assets of 8.1 years is the average useful life of capital assets used in Tetra Technologies operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for TTI is equal to 21.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $208.08 million for Tetra Technologies - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 125.679 million for Tetra Technologies is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Tetra Technologies at the current share price and the inputted number of shares is $0.3 billion.

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COMPANY NEWS

▶ Tetra Technologies: 3Q Earnings Snapshot   [07:53AM  Associated Press]
▶ 20 Small-Cap Stocks With Outsized Potential   [Oct-08-18 05:30AM  InvestorPlace]
▶ Tetra Technologies: 2Q Earnings Snapshot   [07:46AM  Associated Press]
▶ Analyst: Tetra Technologies Is An 'EBITDA Engine'   [Jul-06-18 12:35PM  Benzinga]
▶ Opening Bell, June 20 2018   [Jun-20-18 09:30AM  CNBC Videos]
▶ Today's Bell Ringer, June 20, 2018   [09:00AM  CNBC Videos]
▶ Tetra Technologies: 1Q Earnings Snapshot   [May-08-18 07:15AM  Associated Press]
▶ Tetra Technologies reports 4Q loss   [08:49AM  Associated Press]
▶ Gauging Short Interest in National Oilwell Varco   [Jan-25-18 09:01AM  Market Realist]
▶ Weatherford Internationals Correlation with Crude Oil   [Jan-03-18 10:32AM  Market Realist]
▶ Stocks Generating Improved Relative Strength: Tetra Technologies   [Dec-19-17 03:00AM  Investor's Business Daily]
▶ How Did Schlumberger React to Crude Oil Prices Last Week?   [Dec-11-17 04:55PM  Market Realist]
▶ How Weatherford Has Reacted to Crude Oil Price Changes   [Nov-28-17 10:32AM  Market Realist]
▶ These Oilfield Services Stocks Rose the Most Last Week   [Nov-24-17 09:40AM  Market Realist]
▶ Woodlands energy services company hires new president   [Nov-22-17 07:20AM  American City Business Journals]
▶ CSI Compressco LP Announces New President   [Nov-20-17 07:19PM  PR Newswire]
▶ How Schlumberger Reacted to Crude Oil Prices Last Week   [Nov-13-17 04:30PM  Market Realist]
▶ Tetra Technologies beats 3Q profit forecasts   [07:17AM  Associated Press]
▶ Stocks With Rising Relative Strength: Tetra Technologies   [Nov-03-17 03:00AM  Investor's Business Daily]
▶ Tetra Technologies Sees RS Rating Improve To 74   [Oct-25-17 03:00AM  Investor's Business Daily]
▶ Tetra Technologies Getting Closer To Key Technical Measure   [Oct-04-17 03:00AM  Investor's Business Daily]
▶ Oilfield Services Gainers: TTI, IO, FTK, TESO, and NR   [Sep-15-17 03:34PM  Market Realist]
▶ Tetra Technologies reports 2Q loss   [Aug-09-17 12:32PM  Associated Press]
▶ CSI Compressco LP Announces Second Quarter 2017 Results   [Aug-08-17 07:00AM  PR Newswire]

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