TETRA TECH INC (TTEK) Stock Fundamental Analysis
NASDAQ:TTEK - Nasdaq - US88162G1031 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TTEK. TTEK was compared to 83 industry peers in the Commercial Services & Supplies industry. While TTEK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TTEK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TTEK was profitable.
TTEK had a positive operating cash flow in the past year.
In the past 5 years TTEK has always been profitable.
In the past 5 years TTEK always reported a positive cash flow from operatings.
1.2 Ratios
TTEK has a Return On Assets of 4.50%. This is in the better half of the industry: TTEK outperforms 62.65% of its industry peers.
With a decent Return On Equity value of 11.95%, TTEK is doing good in the industry, outperforming 67.47% of the companies in the same industry.
TTEK's Return On Invested Capital of 14.41% is amongst the best of the industry. TTEK outperforms 85.54% of its industry peers.
TTEK had an Average Return On Invested Capital over the past 3 years of 12.29%. This is in line with the industry average of 11.67%.
The 3 year average ROIC (12.29%) for TTEK is below the current ROIC(14.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 11.95% | ||
| ROIC | 14.41% |
ROA(3y)8.38%
ROA(5y)8.3%
ROE(3y)19.98%
ROE(5y)19.11%
ROIC(3y)12.29%
ROIC(5y)11.91%
1.3 Margins
TTEK has a Profit Margin (4.13%) which is in line with its industry peers.
TTEK's Profit Margin has improved in the last couple of years.
The Operating Margin of TTEK (12.04%) is better than 75.90% of its industry peers.
In the last couple of years the Operating Margin of TTEK has grown nicely.
Looking at the Gross Margin, with a value of 19.85%, TTEK is doing worse than 73.49% of the companies in the same industry.
In the last couple of years the Gross Margin of TTEK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.04% | ||
| PM (TTM) | 4.13% | ||
| GM | 19.85% |
OM growth 3Y2.48%
OM growth 5Y6.3%
PM growth 3Y-5.44%
PM growth 5Y3.04%
GM growth 3Y0.88%
GM growth 5Y3.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTEK is creating some value.
TTEK has more shares outstanding than it did 1 year ago.
TTEK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TTEK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.30 indicates that TTEK is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.30, TTEK is doing good in the industry, outperforming 75.90% of the companies in the same industry.
TTEK has a debt to FCF ratio of 4.34. This is a neutral value as TTEK would need 4.34 years to pay back of all of its debts.
The Debt to FCF ratio of TTEK (4.34) is better than 69.88% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that TTEK is not too dependend on debt financing.
TTEK has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.3 |
ROIC/WACC1.46
WACC9.86%
2.3 Liquidity
A Current Ratio of 1.10 indicates that TTEK should not have too much problems paying its short term obligations.
TTEK's Current ratio of 1.10 is on the low side compared to the rest of the industry. TTEK is outperformed by 72.29% of its industry peers.
A Quick Ratio of 1.10 indicates that TTEK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.10, TTEK is not doing good in the industry: 65.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.98% over the past year.
The Earnings Per Share has been growing by 14.76% on average over the past years. This is quite good.
Looking at the last year, TTEK shows a quite strong growth in Revenue. The Revenue has grown by 10.76% in the last year.
Measured over the past years, TTEK shows a quite strong growth in Revenue. The Revenue has been growing by 12.58% on average per year.
EPS 1Y (TTM)16.98%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%16.2%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%4.85%
3.2 Future
Based on estimates for the next years, TTEK will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.08% on average per year.
The Revenue is expected to grow by 2.60% on average over the next years.
EPS Next Y19.08%
EPS Next 2Y11.63%
EPS Next 3Y12.19%
EPS Next 5Y10.08%
Revenue Next Year6.28%
Revenue Next 2Y2.01%
Revenue Next 3Y2.65%
Revenue Next 5Y2.6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 26.06 indicates a quite expensive valuation of TTEK.
TTEK's Price/Earnings ratio is a bit cheaper when compared to the industry. TTEK is cheaper than 60.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. TTEK is around the same levels.
Based on the Price/Forward Earnings ratio of 22.87, the valuation of TTEK can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TTEK is valued a bit cheaper than the industry average as 61.45% of the companies are valued more expensively.
TTEK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 22.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTEK is on the same level as its industry peers.
TTEK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.54 | ||
| EV/EBITDA | 16.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TTEK has a very decent profitability rating, which may justify a higher PE ratio.
TTEK's earnings are expected to grow with 12.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)1.77
EPS Next 2Y11.63%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, TTEK is not a good candidate for dividend investing.
TTEK's Dividend Yield is a higher than the industry average which is at 2.45.
With a Dividend Yield of 0.72, TTEK pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of TTEK decreases each year by -16.43%.
TTEK has paid a dividend for at least 10 years, which is a reliable track record.
TTEK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-16.43%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
32.93% of the earnings are spent on dividend by TTEK. This is a low number and sustainable payout ratio.
DP32.93%
EPS Next 2Y11.63%
EPS Next 3Y12.19%
35.96
+0.32 (+0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99.12%
Inst Owner Change3.01%
Ins Owners0.39%
Ins Owner Change-0.44%
Market Cap9.48B
Analysts80
Price Target42.84 (19.13%)
Short Float %3.76%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend0.22
Dividend Growth(5Y)-16.43%
DP32.93%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.8%
Min EPS beat(2)3.88%
Max EPS beat(2)5.73%
EPS beat(4)4
Avg EPS beat(4)2.68%
Min EPS beat(4)0.42%
Max EPS beat(4)5.73%
EPS beat(8)8
Avg EPS beat(8)6.18%
EPS beat(12)12
Avg EPS beat(12)6.44%
EPS beat(16)16
Avg EPS beat(16)6.67%
Revenue beat(2)2
Avg Revenue beat(2)5.22%
Min Revenue beat(2)3.83%
Max Revenue beat(2)6.62%
Revenue beat(4)3
Avg Revenue beat(4)2.52%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)6.62%
Revenue beat(8)7
Avg Revenue beat(8)2.2%
Revenue beat(12)11
Avg Revenue beat(12)4.77%
Revenue beat(16)14
Avg Revenue beat(16)4.1%
PT rev (1m)7.69%
PT rev (3m)-1.41%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)7.8%
EPS NY rev (1m)0.11%
EPS NY rev (3m)4.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 22.87 | ||
| P/S | 2.08 | ||
| P/FCF | 40.54 | ||
| P/OCF | 37.34 | ||
| P/B | 6.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.63 |
EPS(TTM)1.38
EY3.84%
EPS(NY)1.57
Fwd EY4.37%
FCF(TTM)0.89
FCFY2.47%
OCF(TTM)0.96
OCFY2.68%
SpS17.29
BVpS5.97
TBVpS-1.81
PEG (NY)1.37
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 11.95% | ||
| ROCE | 20.57% | ||
| ROIC | 14.41% | ||
| ROICexc | 15.45% | ||
| ROICexgc | 87.69% | ||
| OM | 12.04% | ||
| PM (TTM) | 4.13% | ||
| GM | 19.85% | ||
| FCFM | 5.13% |
ROA(3y)8.38%
ROA(5y)8.3%
ROE(3y)19.98%
ROE(5y)19.11%
ROIC(3y)12.29%
ROIC(5y)11.91%
ROICexc(3y)13.45%
ROICexc(5y)13.09%
ROICexgc(3y)67.51%
ROICexgc(5y)58.49%
ROCE(3y)17.54%
ROCE(5y)16.99%
ROICexcg growth 3Y12.34%
ROICexcg growth 5Y7.75%
ROICexc growth 3Y1.26%
ROICexc growth 5Y2.4%
OM growth 3Y2.48%
OM growth 5Y6.3%
PM growth 3Y-5.44%
PM growth 5Y3.04%
GM growth 3Y0.88%
GM growth 5Y3.25%
F-Score7
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 30.19% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 18.6 | ||
| Cash Conversion | 41.26% | ||
| Profit Quality | 124.26% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 4.3 |
F-Score7
WACC9.86%
ROIC/WACC1.46
Cap/Depr(3y)35.94%
Cap/Depr(5y)38.71%
Cap/Sales(3y)0.5%
Cap/Sales(5y)0.47%
Profit Quality(3y)116.94%
Profit Quality(5y)124.37%
High Growth Momentum
Growth
EPS 1Y (TTM)16.98%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%16.2%
EPS Next Y19.08%
EPS Next 2Y11.63%
EPS Next 3Y12.19%
EPS Next 5Y10.08%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%4.85%
Revenue Next Year6.28%
Revenue Next 2Y2.01%
Revenue Next 3Y2.65%
Revenue Next 5Y2.6%
EBIT growth 1Y19.36%
EBIT growth 3Y22.14%
EBIT growth 5Y19.68%
EBIT Next Year25.96%
EBIT Next 3Y12.56%
EBIT Next 5Y9.39%
FCF growth 1Y-8.88%
FCF growth 3Y4.81%
FCF growth 5Y12.11%
OCF growth 1Y-6.63%
OCF growth 3Y5.62%
OCF growth 5Y11.46%