TTEC HOLDINGS INC (TTEC) Stock Fundamental Analysis
NASDAQ:TTEC - Nasdaq - US89854H1023 - Common Stock - Currency: USD
Overall TTEC gets a fundamental rating of 3 out of 10. We evaluated TTEC against 82 industry peers in the IT Services industry. TTEC has a bad profitability rating. Also its financial health evaluation is rather negative. TTEC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TTEC had positive earnings in the past year.
In the past year TTEC has reported a negative cash flow from operations.
Each year in the past 5 years TTEC has been profitable.
Each year in the past 5 years TTEC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -18.23%, TTEC is doing worse than 79.49% of the companies in the same industry.
TTEC's Return On Equity of -120.04% is on the low side compared to the rest of the industry. TTEC is outperformed by 83.33% of its industry peers.
TTEC's Return On Invested Capital of 3.38% is in line compared to the rest of the industry. TTEC outperforms 55.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TTEC is below the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.23% | ||
| ROE | -120.04% | ||
| ROIC | 3.38% |
ROA(3y)4.08%
ROA(5y)5.13%
ROE(3y)15.61%
ROE(5y)18.39%
ROIC(3y)7.03%
ROIC(5y)8.27%
1.3 Margins
TTEC's Profit Margin has declined in the last couple of years.
TTEC has a Operating Margin (3.52%) which is comparable to the rest of the industry.
TTEC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 20.90%, TTEC is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
TTEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.52% | ||
| PM (TTM) | N/A | ||
| GM | 20.9% |
OM growth 3Y-20.47%
OM growth 5Y-3.27%
PM growth 3Y-61.69%
PM growth 5Y-32.11%
GM growth 3Y-6.41%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TTEC is still creating some value.
The number of shares outstanding for TTEC has been increased compared to 1 year ago.
The number of shares outstanding for TTEC has been increased compared to 5 years ago.
The debt/assets ratio for TTEC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.08 indicates that TTEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TTEC (2.08) is worse than 60.26% of its industry peers.
A Debt/Equity ratio of 3.70 is on the high side and indicates that TTEC has dependencies on debt financing.
TTEC has a Debt to Equity ratio of 3.70. This is amonst the worse of the industry: TTEC underperforms 85.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.08 |
ROIC/WACC0.5
WACC6.71%
2.3 Liquidity
A Current Ratio of 1.93 indicates that TTEC should not have too much problems paying its short term obligations.
The Current ratio of TTEC (1.93) is better than 62.82% of its industry peers.
TTEC has a Quick Ratio of 1.93. This is a normal value and indicates that TTEC is financially healthy and should not expect problems in meeting its short term obligations.
TTEC has a Quick ratio of 1.93. This is in the better half of the industry: TTEC outperforms 62.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The earnings per share for TTEC have decreased strongly by -67.04% in the last year.
The Earnings Per Share has been growing slightly by 7.91% on average over the past years.
The Revenue has decreased by -9.17% in the past year.
TTEC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.29% yearly.
EPS 1Y (TTM)-67.04%
EPS 3Y-14.68%
EPS 5Y7.91%
EPS Q2Q%-77.08%
Revenue 1Y (TTM)-9.17%
Revenue growth 3Y8.11%
Revenue growth 5Y10.29%
Sales Q2Q%-12.19%
3.2 Future
The Earnings Per Share is expected to decrease by -23.15% on average over the next years. This is quite bad
Based on estimates for the next years, TTEC will show a decrease in Revenue. The Revenue will decrease by -2.82% on average per year.
EPS Next Y-66.45%
EPS Next 2Y-31.74%
EPS Next 3Y-23.15%
EPS Next 5YN/A
Revenue Next Year-9.2%
Revenue Next 2Y-4.75%
Revenue Next 3Y-2.82%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.34, the valuation of TTEC can be described as very cheap.
97.44% of the companies in the same industry are more expensive than TTEC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TTEC to the average of the S&P500 Index (29.62), we can say TTEC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.80, the valuation of TTEC can be described as very cheap.
100.00% of the companies in the same industry are more expensive than TTEC, based on the Price/Forward Earnings ratio.
TTEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 3.8 |
4.2 Price Multiples
TTEC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TTEC is cheaper than 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
TTEC's earnings are expected to decrease with -23.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-31.74%
EPS Next 3Y-23.15%
5. Dividend
5.1 Amount
TTEC has a Yearly Dividend Yield of 15.14%, which is a nice return.
In the last 3 months the price of TTEC has falen by -23.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TTEC's Dividend Yield is rather good when compared to the industry average which is at 2.94. TTEC pays more dividend than 100.00% of the companies in the same industry.
TTEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.14% |
5.2 History
The dividend of TTEC is nicely growing with an annual growth rate of 13.62%!
TTEC has paid a dividend for at least 10 years, which is a reliable track record.
TTEC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.62%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of TTEC are negative and hence is the payout ratio. TTEC will probably not be able to sustain this dividend level.
DP-8.26%
EPS Next 2Y-31.74%
EPS Next 3Y-23.15%
3.86
+0.03 (+0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners39.17%
Inst Owner Change-95.9%
Ins Owners58.88%
Ins Owner Change0.21%
Market Cap184.24M
Analysts78.33
Price Target5.92 (53.37%)
Short Float %23.94%
Short Ratio15.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.14% |
Yearly Dividend1.04
Dividend Growth(5Y)13.62%
DP-8.26%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-36.95%
Min EPS beat(2)-53.36%
Max EPS beat(2)-20.53%
EPS beat(4)0
Avg EPS beat(4)-23.06%
Min EPS beat(4)-53.36%
Max EPS beat(4)-6.59%
EPS beat(8)4
Avg EPS beat(8)1.23%
EPS beat(12)8
Avg EPS beat(12)4.08%
EPS beat(16)12
Avg EPS beat(16)11.53%
Revenue beat(2)0
Avg Revenue beat(2)-4.48%
Min Revenue beat(2)-5.23%
Max Revenue beat(2)-3.72%
Revenue beat(4)2
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)1.73%
Revenue beat(8)4
Avg Revenue beat(8)-0.48%
Revenue beat(12)7
Avg Revenue beat(12)-0.3%
Revenue beat(16)9
Avg Revenue beat(16)0.35%
PT rev (1m)0%
PT rev (3m)-4.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 3.8 | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.22 |
EPS(TTM)0.89
EY23.06%
EPS(NY)1.02
Fwd EY26.31%
FCF(TTM)-1.59
FCFYN/A
OCF(TTM)-0.55
OCFYN/A
SpS47.48
BVpS5.81
TBVpS-9.87
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.23% | ||
| ROE | -120.04% | ||
| ROCE | 5.36% | ||
| ROIC | 3.38% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 7.83% | ||
| OM | 3.52% | ||
| PM (TTM) | N/A | ||
| GM | 20.9% | ||
| FCFM | N/A |
ROA(3y)4.08%
ROA(5y)5.13%
ROE(3y)15.61%
ROE(5y)18.39%
ROIC(3y)7.03%
ROIC(5y)8.27%
ROICexc(3y)7.78%
ROICexc(5y)9.19%
ROICexgc(3y)23.05%
ROICexgc(5y)22.35%
ROCE(3y)11.16%
ROCE(5y)13.12%
ROICexcg growth 3Y-18.57%
ROICexcg growth 5Y0.88%
ROICexc growth 3Y-26.95%
ROICexc growth 5Y-8.65%
OM growth 3Y-20.47%
OM growth 5Y-3.27%
PM growth 3Y-61.69%
PM growth 5Y-32.11%
GM growth 3Y-6.41%
GM growth 5Y-0.15%
F-Score3
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.7 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.73 | ||
| Cap/Depr | 50.04% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 0.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 2.08 |
F-Score3
WACC6.71%
ROIC/WACC0.5
Cap/Depr(3y)68.19%
Cap/Depr(5y)73.67%
Cap/Sales(3y)2.95%
Cap/Sales(5y)3.12%
Profit Quality(3y)366.5%
Profit Quality(5y)301.57%
High Growth Momentum
Growth
EPS 1Y (TTM)-67.04%
EPS 3Y-14.68%
EPS 5Y7.91%
EPS Q2Q%-77.08%
EPS Next Y-66.45%
EPS Next 2Y-31.74%
EPS Next 3Y-23.15%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.17%
Revenue growth 3Y8.11%
Revenue growth 5Y10.29%
Sales Q2Q%-12.19%
Revenue Next Year-9.2%
Revenue Next 2Y-4.75%
Revenue Next 3Y-2.82%
Revenue Next 5YN/A
EBIT growth 1Y-52.42%
EBIT growth 3Y-14.02%
EBIT growth 5Y6.69%
EBIT Next Year55.63%
EBIT Next 3Y17.28%
EBIT Next 5YN/A
FCF growth 1Y-168.38%
FCF growth 3Y-28.69%
FCF growth 5Y-9.22%
OCF growth 1Y-113.42%
OCF growth 3Y-18.95%
OCF growth 5Y-2.97%