Is TETRA TECH INC (NASDAQ:TTEK) a Strong Candidate 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.

Looking into the quality metrics of TETRA TECH INC

• TETRA TECH INC has demonstrated significant revenue growth over the past 5 years, with a 11.25% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of TETRA TECH INC stands at 74.7%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• TETRA TECH INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.43, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• 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.
• With a robust 5-year EBIT growth of 16.48%, 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.
• 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.

Fundamental analysis of NASDAQ:TTEK

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

TTEK gets a fundamental rating of 6 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TTEK a good candidate for value 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.

Disclaimer

This article should in no way be interpreted as advice. 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.