TETRA TECH INC (NASDAQ:TTEK) can be considered a quality stock. Here's why.

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.

Looking into the quality metrics of TETRA TECH INC

• TETRA TECH INC has achieved substantial revenue growth over the past 5 years, with a 11.25% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• TETRA TECH INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 64.36% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of TETRA TECH INC stands at 2.77, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of TETRA TECH INC stands at 128.0%, 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.
• The 5-year EBIT growth of TETRA TECH INC has been remarkable, with 16.48% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• 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 of NASDAQ:TTEK

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

TTEK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. While TTEK has a great profitability rating, there are some minor concerns on its financial health. TTEK is quite expensive at the moment. It does show a decent growth rate.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

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.