TTEC HOLDINGS INC (TTEC) Stock Fundamental Analysis
USA - NASDAQ:TTEC - US89854H1023 - Common Stock
2.85 USD
-0.03 (-1.04%)
2.88 USD
+0.03 (+1.05%)
Taking everything into account, TTEC scores 3 out of 10 in our fundamental rating. TTEC was compared to 85 industry peers in the IT Services industry. TTEC has a bad profitability rating. Also its financial health evaluation is rather negative. TTEC is valued quite cheap, 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 had a positive cash flow from operations.
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 has a Return On Assets of -1.52%. This is comparable to the rest of the industry: TTEC outperforms 42.86% of its industry peers.
The Return On Equity of TTEC (-9.26%) is comparable to the rest of the industry.
The Return On Invested Capital of TTEC (5.18%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TTEC is significantly below the industry average of 29.74%.
| 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 comparable to the rest of the industry.
TTEC's Operating Margin has declined in the last couple of years.
TTEC's Gross Margin of 21.76% is on the low side compared to the rest of the industry. TTEC is outperformed by 80.95% of its industry peers.
TTEC's Gross Margin has declined in the last couple of years.
| 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
TTEC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TTEC has more shares outstanding
TTEC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TTEC has a worse debt to assets ratio.
2.2 Solvency
TTEC has an Altman-Z score of 2.13. This is not the best score and indicates that TTEC is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.13, TTEC is doing worse than 60.71% of the companies in the same industry.
TTEC has a Debt/Equity ratio of 3.18. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TTEC (3.18) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.13 |
ROIC/WACC0.68
WACC7.68%
2.3 Liquidity
TTEC has a Current 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.
Looking at the Current ratio, with a value of 1.77, TTEC is in line with its industry, outperforming 53.57% of the companies in the same industry.
A Quick Ratio of 1.77 indicates that TTEC should not have too much problems paying its short term obligations.
TTEC has a Quick ratio of 1.77. This is comparable to the rest of the industry: TTEC outperforms 53.57% of 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 by -8.99% 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 very negative growth in Revenue. The Revenue has decreased by -10.36% in the last year.
TTEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
EPS 1Y (TTM)-8.99%
EPS 3Y-46.44%
EPS 5Y-17.87%
EPS Q2Q%9.09%
Revenue 1Y (TTM)-10.36%
Revenue growth 3Y-0.97%
Revenue growth 5Y6.08%
Sales Q2Q%-1.94%
3.2 Future
TTEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.23% yearly.
TTEC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.31% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 3.52 indicates a rather cheap valuation of TTEC.
Based on the Price/Earnings ratio, TTEC is valued cheaper than 96.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. TTEC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 2.07, the valuation of TTEC can be described as very cheap.
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.
When comparing the Price/Forward Earnings ratio of TTEC to the average of the S&P500 Index (34.59), we can say TTEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.52 | ||
| Fwd PE | 2.07 |
4.2 Price Multiples
94.05% of the companies in the same industry are more expensive than TTEC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.18 |
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)0.06
PEG (5Y)N/A
EPS Next 2Y39.26%
EPS Next 3Y26.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.54%, TTEC is a good candidate for dividend investing.
The stock price of TTEC dropped by -21.05% 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 2.00. 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
The dividend of TTEC decreases each year by -37.34%.
TTEC has paid a dividend for at least 10 years, which is 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%
2.85
-0.03 (-1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners30.44%
Inst Owner Change4.05%
Ins Owners58.52%
Ins Owner Change3.76%
Market Cap138.11M
Revenue(TTM)2.21B
Net Income(TTM)-25.72M
Analysts80
Price Target5.1 (78.95%)
Short Float %21.15%
Short Ratio14.5
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)-27.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.89%
EPS NY rev (1m)0%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.52 | ||
| Fwd PE | 2.07 | ||
| P/S | 0.06 | ||
| P/FCF | N/A | ||
| P/OCF | 6.32 | ||
| P/B | 0.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.18 |
EPS(TTM)0.81
EY28.42%
EPS(NY)1.38
Fwd EY48.32%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.45
OCFY15.81%
SpS44.26
BVpS5.73
TBVpS-9.2
PEG (NY)0.06
PEG (5Y)N/A
Graham Number10.22
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%
ROICexgc growth 3Y-35.71%
ROICexgc 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 | 2.13 |
F-Score5
WACC7.68%
ROIC/WACC0.68
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)-8.99%
EPS 3Y-46.44%
EPS 5Y-17.87%
EPS Q2Q%9.09%
EPS Next Y55.87%
EPS Next 2Y39.26%
EPS Next 3Y26.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.36%
Revenue growth 3Y-0.97%
Revenue growth 5Y6.08%
Sales Q2Q%-1.94%
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
TTEC HOLDINGS INC / TTEC FAQ
What is the ChartMill fundamental rating of TTEC HOLDINGS INC (TTEC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TTEC.
Can you provide the valuation status for TTEC HOLDINGS INC?
ChartMill assigns a valuation rating of 7 / 10 to TTEC HOLDINGS INC (TTEC). This can be considered as Undervalued.
What is the profitability of TTEC stock?
TTEC HOLDINGS INC (TTEC) has a profitability rating of 2 / 10.
What is the financial health of TTEC HOLDINGS INC (TTEC) stock?
The financial health rating of TTEC HOLDINGS INC (TTEC) is 2 / 10.
Can you provide the expected EPS growth for TTEC stock?
The Earnings per Share (EPS) of TTEC HOLDINGS INC (TTEC) is expected to grow by 55.87% in the next year.