TETRA TECH INC (TTEK) Stock Fundamental Analysis
USA - NASDAQ:TTEK - US88162G1031 - Common Stock
33.32 USD
-1.25 (-3.62%)
34.44 USD
+1.12 (+3.36%)
TTEK gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making TTEK a very profitable company, without any liquidiy or solvency issues. TTEK has a decent growth rate and is not valued too expensively. These ratings could make TTEK a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year TTEK was profitable.
In the past year TTEK had a positive cash flow from operations.
Each year in the past 5 years TTEK has been profitable.
In the past 5 years TTEK always reported a positive cash flow from operatings.
1.2 Ratios
TTEK has a better Return On Assets (4.96%) than 70.24% of its industry peers.
TTEK has a better Return On Equity (12.41%) than 72.62% of its industry peers.
TTEK's Return On Invested Capital of 13.77% is amongst the best of the industry. TTEK outperforms 88.10% of its industry peers.
TTEK had an Average Return On Invested Capital over the past 3 years of 12.29%. This is above the industry average of 10.17%.
The 3 year average ROIC (12.29%) for TTEK is below the current ROIC(13.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.41% | ||
| ROIC | 13.77% |
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
Looking at the Profit Margin, with a value of 4.70%, TTEK is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
In the last couple of years the Profit Margin of TTEK has grown nicely.
The Operating Margin of TTEK (12.72%) is better than 79.76% of its industry peers.
TTEK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.28%, TTEK is doing worse than 72.62% 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 | 12.72% | ||
| PM (TTM) | 4.7% | ||
| GM | 20.28% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TTEK is still creating some value.
The number of shares outstanding for TTEK has been increased compared to 1 year ago.
Compared to 5 years ago, TTEK has more shares outstanding
TTEK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.16 indicates that TTEK is not in any danger for bankruptcy at the moment.
TTEK has a better Altman-Z score (4.16) than 73.81% of its industry peers.
The Debt to FCF ratio of TTEK is 1.95, which is an excellent value as it means it would take TTEK, only 1.95 years of fcf income to pay off all of its debts.
TTEK's Debt to FCF ratio of 1.95 is amongst the best of the industry. TTEK outperforms 82.14% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that TTEK is not too dependend on debt financing.
TTEK has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: TTEK outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 4.16 |
ROIC/WACC1.68
WACC8.19%
2.3 Liquidity
TTEK has a Current Ratio of 1.18. This is a normal value and indicates that TTEK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.18, TTEK is doing worse than 69.05% of the companies in the same industry.
TTEK has a Quick Ratio of 1.18. This is a normal value and indicates that TTEK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TTEK (1.18) is worse than 61.90% of its industry peers.
TTEK does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.36% over the past year.
Measured over the past years, TTEK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.76% on average per year.
The Revenue has grown by 8.59% in the past year. This is quite good.
The Revenue has been growing by 12.58% on average over the past years. This is quite good.
EPS 1Y (TTM)20.36%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%35.22%
Revenue 1Y (TTM)8.59%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%3.91%
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.
Based on estimates for the next years, TTEK will show a small growth in Revenue. The Revenue will grow by 2.60% on average per year.
EPS Next Y22.52%
EPS Next 2Y11.27%
EPS Next 3Y11.49%
EPS Next 5Y10.08%
Revenue Next Year4.68%
Revenue Next 2Y-1.57%
Revenue Next 3Y1.15%
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.
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 22.36, which indicates a rather expensive current valuation of TTEK.
64.29% of the companies in the same industry are more expensive than TTEK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TTEK to the average of the S&P500 Index (27.49), we can say TTEK is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.33, 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 64.29% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.99. TTEK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 21.33 |
4.2 Price Multiples
TTEK's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TTEK is valued a bit cheaper than the industry average as 72.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.8 | ||
| EV/EBITDA | 14.52 |
4.3 Compensation for Growth
TTEK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TTEK may justify a higher PE ratio.
PEG (NY)0.99
PEG (5Y)1.51
EPS Next 2Y11.27%
EPS Next 3Y11.49%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, TTEK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.41, TTEK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, TTEK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of TTEK decreases each year by -16.43%.
TTEK has been paying a dividend for at least 10 years, so it has a reliable track record.
TTEK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-16.43%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
TTEK pays out 29.39% of its income as dividend. This is a sustainable payout ratio.
DP29.39%
EPS Next 2Y11.27%
EPS Next 3Y11.49%
33.32
-1.25 (-3.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.2%
Inst Owner Change-1.66%
Ins Owners0.39%
Ins Owner Change-0.14%
Market Cap8.76B
Analysts80
Price Target44.27 (32.86%)
Short Float %4.2%
Short Ratio5.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.22
Dividend Growth(5Y)-16.43%
DP29.39%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.33%
Min EPS beat(2)5.73%
Max EPS beat(2)10.94%
EPS beat(4)4
Avg EPS beat(4)5.31%
Min EPS beat(4)0.69%
Max EPS beat(4)10.94%
EPS beat(8)8
Avg EPS beat(8)6.69%
EPS beat(12)12
Avg EPS beat(12)7.27%
EPS beat(16)16
Avg EPS beat(16)6.98%
Revenue beat(2)1
Avg Revenue beat(2)1.23%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)3.83%
Revenue beat(4)2
Avg Revenue beat(4)1.98%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)6.62%
Revenue beat(8)6
Avg Revenue beat(8)1.92%
Revenue beat(12)10
Avg Revenue beat(12)4.63%
Revenue beat(16)14
Avg Revenue beat(16)4.02%
PT rev (1m)-0.46%
PT rev (3m)3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 21.33 | ||
| P/S | 1.9 | ||
| P/FCF | 19.8 | ||
| P/OCF | 18.93 | ||
| P/B | 5.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.52 |
EPS(TTM)1.49
EY4.47%
EPS(NY)1.56
Fwd EY4.69%
FCF(TTM)1.68
FCFY5.05%
OCF(TTM)1.76
OCFY5.28%
SpS17.5
BVpS6.63
TBVpS-1.91
PEG (NY)0.99
PEG (5Y)1.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.41% | ||
| ROCE | 19.65% | ||
| ROIC | 13.77% | ||
| ROICexc | 14.99% | ||
| ROICexgc | 83.34% | ||
| OM | 12.72% | ||
| PM (TTM) | 4.7% | ||
| GM | 20.28% | ||
| FCFM | 9.62% |
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 Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 33.35% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 17.3 | ||
| Cash Conversion | 71.63% | ||
| Profit Quality | 204.61% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.16 |
F-Score7
WACC8.19%
ROIC/WACC1.68
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)20.36%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%35.22%
EPS Next Y22.52%
EPS Next 2Y11.27%
EPS Next 3Y11.49%
EPS Next 5Y10.08%
Revenue 1Y (TTM)8.59%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%3.91%
Revenue Next Year4.68%
Revenue Next 2Y-1.57%
Revenue Next 3Y1.15%
Revenue Next 5Y2.6%
EBIT growth 1Y19.75%
EBIT growth 3Y22.14%
EBIT growth 5Y19.68%
EBIT Next Year28.12%
EBIT Next 3Y11.86%
EBIT Next 5Y9.39%
FCF growth 1Y54.19%
FCF growth 3Y4.81%
FCF growth 5Y12.11%
OCF growth 1Y50.97%
OCF growth 3Y5.62%
OCF growth 5Y11.46%