Tetra Story

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TTI -- USA Stock  

USD 2.40  0.04  1.64%

It looks like Schlumberger will continue to recover much faster as its share price surged up 3.35% today to Tetra Technologies's 16.6667%. As many investors are getting excited about energy space, Tetra Technologies and Schlumberger may be going in opposite directions. We are going to examine some of the competitive aspects of both Tetra and Schlumberger.
Published over two weeks ago
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Are Tetra (NYSE:TTI) stockholders shifting to Schlumberger (NYSE:SLB)?
By analyzing existing basic indicators between Tetra Technologies and Schlumberger, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Schlumberger with a short position in Tetra Technologies. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Tetra Technologies has an asset utilization ratio of 122.31 percent. This implies that the company is making $1.22 for each dollar of assets. An increasing asset utilization means that Tetra Technologies is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Tetra or Schlumberger is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Tetra Technologies's Liquidity

Tetra Technologies financial leverage refers to using borrowed capital as a funding source to finance Tetra Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tetra Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Tetra Technologies's total debt and its cash.

Correlation Between Tetra and Schlumberger NV

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Tetra Technologies together with similar or unrelated positions with a negative correlation. For example, you can also add Schlumberger to your portfolio. If Schlumberger is not perfectly correlated to Tetra Technologies it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Tetra Technologies for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between TTI and SLB for more information.

Note

Are you currently holding both Tetra Technologies and Schlumberger in your portfolio?
Please note if you are using this as a pair-trade strategy between Tetra Technologies and Schlumberger, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Acquisition by Timothy Moeller of 103579 shares of Tetra Technologies subject to Rule 16b-3

Legal trades by Tetra Technologies insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Tetra insider trading alert for grant of restricted stock unit by Timothy Moeller, SVP - Supply Chain & Chemicals, on 12th of April 2021. This event was filed by Tetra Technologies Inc with SEC on 2021-02-19. Statement of changes in beneficial ownership - SEC Form 4. Timothy Moeller currently serves as vice president chief procurement officer of Tetra Technologies [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Tetra Technologies

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Tetra Technologies revenue. Based on the latest financial disclosure, Tetra Technologies reported 377.72 M of revenue. This is 99.23% lower than that of the Energy sector and 88.07% lower than that of the Oil & Gas Equipment & Services industry. The revenue for all United States stocks is 96.0% higher than that of Tetra Technologies. As for Schlumberger we see revenue of 23.6 B, which is much higher than that of the Oil & Gas Equipment & Services

SLB
23.6 B
TTI377.72 Million1.39
Sector3.17 Billion11.66
SLB23.6 Billion86.95

Another 3 percent rise for Tetra Technologies

Jensen alpha is down to 1.67. It may hint to a possible volatility drop.
As of the 1st of April, Tetra Technologies has the Risk Adjusted Performance of 0.226, semi deviation of 3.69, and Coefficient Of Variation of 385.64. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Tetra Technologies, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Tetra Technologies, which can be compared to its competition. Please validate Tetra Technologies jensen alpha and downside variance to decide if Tetra Technologies is priced more or less accurately, providing market reflects its prevalent price of 2.8 per share. Please also confirm Tetra Technologies total risk alpha, which is currently at 0.7114 to double-check the company can sustain itself at a future point.

Our Final Take On Tetra Technologies

While some companies within the oil & gas equipment & services industry are still a little expensive, even after the recent corrections, Tetra Technologies may offer a potential longer-term growth to stockholders. To conclude, as of the 1st of April 2021, our latest 30 days buy-hold-sell advice on the company is Strong Hold. We believe Tetra Technologies is fairly valued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Tetra Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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