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Revenues Tell The Story For TETRA Technologies, Inc. (NYSE:TTI) As Its Stock Soars 26%

Simply Wall St · 2d ago

TETRA Technologies, Inc. (NYSE:TTI) shares have continued their recent momentum with a 26% gain in the last month alone. The last month tops off a massive increase of 174% in the last year.

Following the firm bounce in price, when almost half of the companies in the United States' Energy Services industry have price-to-sales ratios (or "P/S") below 1.1x, you may consider TETRA Technologies as a stock probably not worth researching with its 2x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's as high as it is.

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Check out our latest analysis for TETRA Technologies

ps-multiple-vs-industry
NYSE:TTI Price to Sales Ratio vs Industry December 23rd 2025

How TETRA Technologies Has Been Performing

With revenue growth that's inferior to most other companies of late, TETRA Technologies has been relatively sluggish. It might be that many expect the uninspiring revenue performance to recover significantly, which has kept the P/S ratio from collapsing. If not, then existing shareholders may be very nervous about the viability of the share price.

Keen to find out how analysts think TETRA Technologies' future stacks up against the industry? In that case, our free report is a great place to start.

What Are Revenue Growth Metrics Telling Us About The High P/S?

TETRA Technologies' P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.

Taking a look back first, we see that there was hardly any revenue growth to speak of for the company over the past year. Still, the latest three year period was better as it's delivered a decent 19% overall rise in revenue. So it appears to us that the company has had a mixed result in terms of growing revenue over that time.

Shifting to the future, estimates from the three analysts covering the company suggest revenue should grow by 8.6% per annum over the next three years. That's shaping up to be materially higher than the 4.3% per annum growth forecast for the broader industry.

In light of this, it's understandable that TETRA Technologies' P/S sits above the majority of other companies. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.

What Does TETRA Technologies' P/S Mean For Investors?

The large bounce in TETRA Technologies' shares has lifted the company's P/S handsomely. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.

As we suspected, our examination of TETRA Technologies' analyst forecasts revealed that its superior revenue outlook is contributing to its high P/S. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. It's hard to see the share price falling strongly in the near future under these circumstances.

You always need to take note of risks, for example - TETRA Technologies has 2 warning signs we think you should be aware of.

It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).