Should you consider TETRA TECH INC (NASDAQ:TTEK) for quality investing?

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.

• The 5-year revenue growth of TETRA TECH INC has been remarkable, with 11.25% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• TETRA TECH INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 74.7% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• TETRA TECH INC maintains a healthy Debt/Free Cash Flow Ratio of 2.43, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• 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.
• 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.
• The EBIT 5-year growth of TETRA TECH INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

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

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall TTEK gets a fundamental rating of 6 out of 10. We evaluated TTEK against 83 industry peers in the Commercial Services & Supplies industry. While TTEK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TTEK is quite expensive at the moment. It does show a decent growth rate.

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

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.