TTEC HOLDINGS INC (TTEC)
US89854H1023 - Common Stock
Taking everything into account, TTEC scores 3 out of 10 in our fundamental rating. TTEC was compared to 83 industry peers in the IT Services industry. Both the profitability and financial health of TTEC have multiple concerns. 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.
TTEC had positive earnings in each of the past 5 years.
Each year in the past 5 years TTEC had a positive operating cash flow.
1.2 Ratios
TTEC has a Return On Assets of -18.23%. This is in the lower half of the industry: TTEC underperforms 77.78% of its industry peers.
With a Return On Equity value of -120.04%, TTEC is not doing good in the industry: 83.95% of the companies in the same industry are doing better.
TTEC has a Return On Invested Capital of 3.38%. This is comparable to the rest of the industry: TTEC outperforms 58.02% of its industry peers.
TTEC had an Average Return On Invested Capital over the past 3 years of 7.03%. This is below the industry average of 9.40%.
| 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 in line with its industry peers.
In the last couple of years the Operating Margin of TTEC has declined.
The Gross Margin of TTEC (20.90%) is worse than 79.01% of its industry peers.
In the last couple of years the Gross Margin of TTEC has remained more or less at the same level.
| 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.
TTEC has more shares outstanding than it did 1 year ago.
TTEC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TTEC is higher compared to a year ago.
2.2 Solvency
TTEC has an Altman-Z score of 2.09. 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.
TTEC's Altman-Z score of 2.09 is in line compared to the rest of the industry. TTEC outperforms 43.21% 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 worse Debt to Equity ratio (3.70) than 86.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.09 |
ROIC/WACC0.48
WACC6.99%
2.3 Liquidity
A Current Ratio of 1.93 indicates that TTEC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.93, TTEC is doing good in the industry, outperforming 62.96% of the companies in the same industry.
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's Quick ratio of 1.93 is fine compared to the rest of the industry. TTEC outperforms 62.96% 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.
Measured over the past 5 years, TTEC shows a small growth in Earnings Per Share. The EPS has been growing by 7.91% on average per year.
The Revenue has decreased by -9.17% in the past year.
The Revenue has been growing by 10.29% on average over the past years. This is quite good.
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
TTEC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -23.15% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 5.10, which indicates a rather cheap valuation of TTEC.
Compared to the rest of the industry, the Price/Earnings ratio of TTEC indicates a rather cheap valuation: TTEC is cheaper than 97.53% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. TTEC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.47, the valuation of TTEC can be described as very cheap.
TTEC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TTEC is cheaper than 98.77% of the companies in the same industry.
TTEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.1 | ||
| Fwd PE | 4.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTEC is valued cheaply inside the industry as 87.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.41 |
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)0.65
EPS Next 2Y-31.74%
EPS Next 3Y-23.15%
5. Dividend
5.1 Amount
TTEC has a Yearly Dividend Yield of 10.98%, which is a nice return.
Compared to an average industry Dividend Yield of 2.71, TTEC pays a better dividend. On top of this TTEC pays more dividend than 98.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, TTEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.98% |
5.2 History
On average, the dividend of TTEC grows each year by 13.62%, which is quite nice.
TTEC has been paying a dividend for at least 10 years, so it has 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%
TTEC HOLDINGS INC
NASDAQ:TTEC (12/20/2024, 8:00:01 PM)
After market: 4.5395 0 (-0.01%)4.54
-0.05 (-1.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners37.95%
Inst Owner Change1.7%
Ins Owners16.44%
Ins Owner Change0.25%
Market Cap216.69M
Analysts78.33
Price Target5.92 (30.4%)
Short Float %23.39%
Short Ratio10.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.98% |
Dividend Growth(5Y)13.62%
DP-8.26%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-4.72%
PT rev (3m)-22.67%
EPS NQ rev (1m)-18.83%
EPS NQ rev (3m)-58.18%
EPS NY rev (1m)-9.06%
EPS NY rev (3m)-10.84%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-5.83%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.1 | ||
| Fwd PE | 4.47 | ||
| P/S | 0.1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.41 |
EPS(TTM)0.89
EY19.6%
EPS(NY)1.02
Fwd EY22.37%
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)0.65
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 | 2.09 |
F-Score3
WACC6.99%
ROIC/WACC0.48
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 Year55.64%
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%