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Reasonable growth and debt and a high ROIC for TETRA TECH INC (NASDAQ:TTEK).

By Mill Chart

Last update: Sep 19, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TETRA TECH INC (NASDAQ:TTEK) is suited for quality investing. Investors should of couse do their own research, but we spotted TETRA TECH INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • The 5-year revenue growth of TETRA TECH INC has been remarkable, with 6.87% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 63.8%, TETRA TECH INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 3.21, TETRA TECH INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of TETRA TECH INC stands at 129.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • With a robust 5-year EBIT growth of 13.18%, TETRA TECH INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • TETRA TECH INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

TTEK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 79 industry peers in the Commercial Services & Supplies industry. TTEK scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, TTEK is valued expensive at the moment. These ratings would make TTEK suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of TTEK

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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