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Is TETRA TECH INC (NASDAQ:TTEK) a Strong Candidate for Quality Investing?

By Mill Chart

Last update: May 3, 2024

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 course 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.

  • Over the past 5 years, TETRA TECH INC has experienced impressive revenue growth, with 11.25% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a notable ROIC excluding cash and goodwill at 60.77%, TETRA TECH INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 2.89, 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.
  • With a favorable Profit Quality (5-year) ratio of 128.0%, TETRA TECH INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • TETRA TECH INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 16.48%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • TETRA TECH INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NASDAQ:TTEK telling us.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to TTEK. TTEK was compared to 84 industry peers in the Commercial Services & Supplies industry. TTEK has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, TTEK is valued expensive at the moment.

Our latest full fundamental report of TTEK contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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