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 85 industry peers in the IT Services industry. TTEC may be in some trouble as it scores bad on both profitability and health. TTEC has a valuation in line with the averages, 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 each of the past 5 years.
TTEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TTEC has a worse Return On Assets (-17.47%) than 77.11% of its industry peers.
With a Return On Equity value of -109.32%, TTEC is not doing good in the industry: 78.31% of the companies in the same industry are doing better.
TTEC has a Return On Invested Capital (4.13%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TTEC is below the industry average of 9.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.47% | ||
| ROE | -109.32% | ||
| ROIC | 4.13% |
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
In the last couple of years the Profit Margin of TTEC has declined.
Looking at the Operating Margin, with a value of 3.94%, TTEC is in line with its industry, outperforming 55.42% of the companies in the same industry.
TTEC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 20.63%, TTEC is doing worse than 80.72% of the companies in the same industry.
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 | 3.94% | ||
| PM (TTM) | N/A | ||
| GM | 20.63% |
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 below the Cost of Capital (WACC), so TTEC is destroying value.
Compared to 1 year ago, TTEC has more shares outstanding
Compared to 5 years ago, TTEC has more shares outstanding
The debt/assets ratio for TTEC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.16 indicates that TTEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
TTEC has a Altman-Z score (2.16) which is in line with its industry peers.
A Debt/Equity ratio of 3.25 is on the high side and indicates that TTEC has dependencies on debt financing.
TTEC has a Debt to Equity ratio of 3.25. This is amonst the worse of the industry: TTEC underperforms 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.16 |
ROIC/WACC0.58
WACC7.18%
2.3 Liquidity
A Current Ratio of 1.56 indicates that TTEC should not have too much problems paying its short term obligations.
TTEC has a Current ratio of 1.56. This is comparable to the rest of the industry: TTEC outperforms 48.19% of its industry peers.
TTEC has a Quick Ratio of 1.56. This is a normal value and indicates that TTEC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TTEC (1.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The earnings per share for TTEC have decreased strongly by -57.43% 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.
Looking at the last year, TTEC shows a decrease in Revenue. The Revenue has decreased by -5.82% in the last year.
Measured over the past years, TTEC shows a quite strong growth in Revenue. The Revenue has been growing by 10.29% on average per year.
EPS 1Y (TTM)-57.43%
EPS 3Y-14.68%
EPS 5Y7.91%
EPS Q2Q%-74.55%
Revenue 1Y (TTM)-5.82%
Revenue growth 3Y8.11%
Revenue growth 5Y10.29%
Sales Q2Q%-11.04%
3.2 Future
Based on estimates for the next years, TTEC will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.74% on average per year.
The Revenue is expected to decrease by -1.01% on average over the next years.
EPS Next Y-62.37%
EPS Next 2Y-26.01%
EPS Next 3Y-12.74%
EPS Next 5YN/A
Revenue Next Year-9.04%
Revenue Next 2Y-3.98%
Revenue Next 3Y-1.01%
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.
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 3.97 indicates a rather cheap valuation of TTEC.
96.39% of the companies in the same industry are more expensive than TTEC, based on the Price/Earnings ratio.
TTEC is valuated cheaply when we compare the Price/Earnings ratio to 30.16, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.19, the valuation of TTEC can be described as very cheap.
Based on the Price/Forward Earnings ratio, TTEC is valued cheaply inside the industry as 98.80% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, TTEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.97 | ||
| Fwd PE | 4.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTEC is valued cheaper than 86.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as TTEC's earnings are expected to decrease with -12.74% in the coming years.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-26.01%
EPS Next 3Y-12.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.15%, TTEC is a good candidate for dividend investing.
The stock price of TTEC dropped by -25.32% 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.
Compared to an average industry Dividend Yield of 2.73, TTEC pays a better dividend. On top of this TTEC pays more dividend than 100.00% of the companies listed in the same industry.
TTEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.25.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.15% |
5.2 History
The dividend of TTEC is nicely growing with an annual growth rate of 13.62%!
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
TTEC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-8.77%
EPS Next 2Y-26.01%
EPS Next 3Y-12.74%
TTEC HOLDINGS INC
NASDAQ:TTEC (11/4/2024, 2:28:59 PM)
5
-0.19 (-3.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap238.60M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.15% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.97 | ||
| Fwd PE | 4.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.47% | ||
| ROE | -109.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.94% | ||
| PM (TTM) | N/A | ||
| GM | 20.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-57.43%
EPS 3Y-14.68%
EPS 5Y
EPS Q2Q%
EPS Next Y-62.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.82%
Revenue growth 3Y8.11%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y