TETRA Technologies: Profit Margins Soar, But Future Earnings Expected to Decline

TETRA Technologies (TTI) posted a 73.5% annual earnings growth over the past five years and a 19.7% net profit margin, significantly higher than its 1.2% margin last year. However, analysts predict a 71.3% decline in earnings and 2.9% revenue growth over the next three years, driven by rising costs and flattening core demand. Despite the strong momentum, the company's 7.9x price-to-earnings ratio is well below its industry average, making it appear to be a value play on paper.