TTEC HOLDINGS INC (TTEC) Stock Fundamental Analysis
USA - NASDAQ:TTEC - US89854H1023 - Common Stock
3.57 USD
+0.04 (+1.13%)
3.57 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TTEC. TTEC was compared to 86 industry peers in the IT Services industry. TTEC has a bad profitability rating. Also its financial health evaluation is rather negative. TTEC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TTEC had positive earnings in the past year.
TTEC had a positive operating cash flow in the past year.
TTEC had positive earnings in 4 of the past 5 years.
Of the past 5 years TTEC 4 years had a positive operating cash flow.
1.2 Ratios
TTEC's Return On Assets of -1.52% is on the low side compared to the rest of the industry. TTEC is outperformed by 60.47% of its industry peers.
TTEC has a Return On Equity of -9.26%. This is in the lower half of the industry: TTEC underperforms 61.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.18%, TTEC is in line with its industry, outperforming 58.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TTEC is significantly below the industry average of 21.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.52% | ||
| ROE | -9.26% | ||
| ROIC | 5.18% |
ROA(3y)-4.38%
ROA(5y)0.35%
ROE(3y)-36.14%
ROE(5y)-10.95%
ROIC(3y)6.39%
ROIC(5y)9.26%
1.3 Margins
TTEC has a Operating Margin (4.10%) which is in line with its industry peers.
TTEC's Operating Margin has declined in the last couple of years.
TTEC has a Gross Margin of 21.76%. This is amonst the worse of the industry: TTEC underperforms 81.40% of its industry peers.
In the last couple of years the Gross Margin of TTEC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.1% | ||
| PM (TTM) | N/A | ||
| GM | 21.76% |
OM growth 3Y-29.01%
OM growth 5Y-14.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.03%
GM growth 5Y-3.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TTEC is destroying value.
Compared to 1 year ago, TTEC has more shares outstanding
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 2.15 indicates that TTEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TTEC (2.15) is comparable to the rest of the industry.
TTEC has a Debt/Equity ratio of 3.18. This is a high value indicating a heavy dependency on external financing.
TTEC has a worse Debt to Equity ratio (3.18) than 84.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC0.66
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.77 indicates that TTEC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.77, TTEC perfoms like the industry average, outperforming 54.65% of the companies in the same industry.
TTEC has a Quick Ratio of 1.77. 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 (1.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
The earnings per share for TTEC have decreased strongly by -36.51% in the last year.
Measured over the past years, TTEC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.87% on average per year.
Looking at the last year, TTEC shows a decrease in Revenue. The Revenue has decreased by -8.34% in the last year.
The Revenue has been growing slightly by 6.08% on average over the past years.
EPS 1Y (TTM)-36.51%
EPS 3Y-46.44%
EPS 5Y-17.87%
EPS Q2Q%57.14%
Revenue 1Y (TTM)-8.34%
Revenue growth 3Y-0.97%
Revenue growth 5Y6.08%
Sales Q2Q%-3.84%
3.2 Future
Based on estimates for the next years, TTEC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.23% on average per year.
The Revenue is expected to decrease by -0.31% on average over the next years.
EPS Next Y55.87%
EPS Next 2Y39.26%
EPS Next 3Y26.23%
EPS Next 5YN/A
Revenue Next Year-5.8%
Revenue Next 2Y-2.71%
Revenue Next 3Y-0.31%
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 accelerating.
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
TTEC is valuated cheaply with a Price/Earnings ratio of 4.46.
TTEC's Price/Earnings ratio is rather cheap when compared to the industry. TTEC is cheaper than 95.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.49, TTEC is valued rather cheaply.
A Price/Forward Earnings ratio of 2.59 indicates a rather cheap valuation of TTEC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTEC indicates a rather cheap valuation: TTEC is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. TTEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.46 | ||
| Fwd PE | 2.59 |
4.2 Price Multiples
TTEC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TTEC is cheaper than 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.36 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TTEC's earnings are expected to grow with 26.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y39.26%
EPS Next 3Y26.23%
5. Dividend
5.1 Amount
TTEC has a Yearly Dividend Yield of 5.54%, which is a nice return.
The stock price of TTEC dropped by -28.60% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TTEC's Dividend Yield is rather good when compared to the industry average which is at 2.49. TTEC pays more dividend than 98.84% of the companies in the same industry.
TTEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
The dividend of TTEC decreases each year by -37.34%.
TTEC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-37.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y39.26%
EPS Next 3Y26.23%
3.57
+0.04 (+1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners30.44%
Inst Owner Change-0.01%
Ins Owners58.52%
Ins Owner Change3.45%
Market Cap173.00M
Analysts80
Price Target5.1 (42.86%)
Short Float %18.11%
Short Ratio8.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Yearly Dividend0.06
Dividend Growth(5Y)-37.34%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.47%
Min EPS beat(2)7.84%
Max EPS beat(2)27.09%
EPS beat(4)2
Avg EPS beat(4)2.22%
Min EPS beat(4)-20.53%
Max EPS beat(4)27.09%
EPS beat(8)3
Avg EPS beat(8)-6.98%
EPS beat(12)7
Avg EPS beat(12)4.81%
EPS beat(16)11
Avg EPS beat(16)5.94%
Revenue beat(2)2
Avg Revenue beat(2)1.52%
Min Revenue beat(2)0.96%
Max Revenue beat(2)2.08%
Revenue beat(4)2
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)2.08%
Revenue beat(8)4
Avg Revenue beat(8)-1.16%
Revenue beat(12)7
Avg Revenue beat(12)-0.33%
Revenue beat(16)9
Avg Revenue beat(16)-0.39%
PT rev (1m)0%
PT rev (3m)-19.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.46 | ||
| Fwd PE | 2.59 | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | 7.92 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.36 |
EPS(TTM)0.8
EY22.41%
EPS(NY)1.38
Fwd EY38.57%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.45
OCFY12.62%
SpS44.26
BVpS5.73
TBVpS-9.2
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.52% | ||
| ROE | -9.26% | ||
| ROCE | 6.56% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 13.03% | ||
| OM | 4.1% | ||
| PM (TTM) | N/A | ||
| GM | 21.76% | ||
| FCFM | N/A |
ROA(3y)-4.38%
ROA(5y)0.35%
ROE(3y)-36.14%
ROE(5y)-10.95%
ROIC(3y)6.39%
ROIC(5y)9.26%
ROICexc(3y)6.98%
ROICexc(5y)10.29%
ROICexgc(3y)18.74%
ROICexgc(5y)26.23%
ROCE(3y)8.09%
ROCE(5y)11.72%
ROICexcg growth 3Y-35.71%
ROICexcg growth 5Y-11.12%
ROICexc growth 3Y-28.3%
ROICexc growth 5Y-15.05%
OM growth 3Y-29.01%
OM growth 5Y-14.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.03%
GM growth 5Y-3.42%
F-Score5
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.87 | ||
| Cap/Depr | 32.23% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 1.11 | ||
| Cash Conversion | 12.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 2.15 |
F-Score5
WACC7.91%
ROIC/WACC0.66
Cap/Depr(3y)62.75%
Cap/Depr(5y)65.3%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.51%
EPS 3Y-46.44%
EPS 5Y-17.87%
EPS Q2Q%57.14%
EPS Next Y55.87%
EPS Next 2Y39.26%
EPS Next 3Y26.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.34%
Revenue growth 3Y-0.97%
Revenue growth 5Y6.08%
Sales Q2Q%-3.84%
Revenue Next Year-5.8%
Revenue Next 2Y-2.71%
Revenue Next 3Y-0.31%
Revenue Next 5YN/A
EBIT growth 1Y-4.55%
EBIT growth 3Y-29.69%
EBIT growth 5Y-8.98%
EBIT Next Year193.01%
EBIT Next 3Y45.69%
EBIT Next 5YN/A
FCF growth 1Y-107.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.54%
OCF growth 3YN/A
OCF growth 5YN/A