37.1 USD
-0.23 (-0.62%)
38.3585 USD
+1.26 (+3.39%)
Overall TTEK gets a fundamental rating of 6 out of 10. We evaluated TTEK against 80 industry peers in the Commercial Services & Supplies industry. TTEK scores excellent on profitability, but there are some minor concerns on its financial health. TTEK is not valued too expensively and it also shows a decent growth rate.
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.
- 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
- The Return On Assets of TTEK (5.79%) is better than 76.25% of its industry peers.
- TTEK has a better Return On Equity (13.92%) than 73.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.60%, TTEK belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TTEK is in line with the industry average of 10.58%.
- The 3 year average ROIC (12.36%) for TTEK is below the current ROIC(14.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 13.92% | ||
| ROIC | 14.6% |
ROA(3y)6.96%
ROA(5y)7.99%
ROE(3y)17.21%
ROE(5y)18.54%
ROIC(3y)12.36%
ROIC(5y)12.38%
1.3 Margins
- The Profit Margin of TTEK (5.37%) is better than 67.50% of its industry peers.
- In the last couple of years the Profit Margin of TTEK has declined.
- TTEK has a better Operating Margin (13.34%) than 80.00% of its industry peers.
- In the last couple of years the Operating Margin of TTEK has grown nicely.
- The Gross Margin of TTEK (20.82%) is worse than 73.75% of its industry peers.
- In the last couple of years the Gross Margin of TTEK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.34% | ||
| PM (TTM) | 5.37% | ||
| GM | 20.82% |
OM growth 3Y3.57%
OM growth 5Y4.05%
PM growth 3Y-16.69%
PM growth 5Y-6.24%
GM growth 3Y0.85%
GM growth 5Y1.83%
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.
- TTEK has less shares outstanding than it did 1 year ago.
- TTEK has more shares outstanding than it did 5 years ago.
- TTEK has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.55 indicates that TTEK is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.55, TTEK is in the better half of the industry, outperforming 78.75% of the companies in the same industry.
- TTEK has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
- The Debt to FCF ratio of TTEK (1.74) is better than 83.75% of its industry peers.
- TTEK has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.43, TTEK perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 4.55 |
ROIC/WACC1.73
WACC8.44%
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.
- TTEK's Current ratio of 1.18 is on the low side compared to the rest of the industry. TTEK is outperformed by 65.00% of its industry peers.
- 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.
- TTEK has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- TTEK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.12%, which is quite good.
- TTEK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.06% yearly.
- The Revenue has been growing slightly by 6.84% in the past year.
- TTEK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.48% yearly.
EPS 1Y (TTM)17.12%
EPS 3Y20.03%
EPS 5Y19.06%
EPS Q2Q%0%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y17.65%
Revenue growth 5Y14.48%
Sales Q2Q%-13.38%
3.2 Future
- Based on estimates for the next years, TTEK will show a small growth in Earnings Per Share. The EPS will grow by 7.35% on average per year.
- TTEK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y-2.55%
EPS Next 2Y5.16%
EPS Next 3Y6.16%
EPS Next 5Y7.35%
Revenue Next Year-7.61%
Revenue Next 2Y-0.68%
Revenue Next 3Y1.96%
Revenue Next 5Y2.27%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 23.78 indicates a rather expensive valuation of TTEK.
- Based on the Price/Earnings ratio, TTEK is valued a bit cheaper than 67.50% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TTEK to the average of the S&P500 Index (28.60), we can say TTEK is valued inline with the index average.
- TTEK is valuated rather expensively with a Price/Forward Earnings ratio of 21.50.
- Based on the Price/Forward Earnings ratio, TTEK is valued a bit cheaper than 68.75% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TTEK to the average of the S&P500 Index (25.83), we can say TTEK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 21.5 |
4.2 Price Multiples
- TTEK's Enterprise Value to EBITDA ratio is in line with the industry average.
- 72.50% of the companies in the same industry are more expensive than TTEK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.04 | ||
| EV/EBITDA | 15.24 |
4.3 Compensation for Growth
- TTEK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y5.16%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.70%, TTEK is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.82, TTEK pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.70, TTEK pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
- The dividend of TTEK decreases each year by -17.42%.
- 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)-17.42%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- 26.25% of the earnings are spent on dividend by TTEK. This is a low number and sustainable payout ratio.
DP26.25%
EPS Next 2Y5.16%
EPS Next 3Y6.16%
TETRA TECH INC / TTEK FAQ
What is the ChartMill fundamental rating of TETRA TECH INC (TTEK) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TTEK.
What is the valuation status for TTEK stock?
ChartMill assigns a valuation rating of 4 / 10 to TETRA TECH INC (TTEK). This can be considered as Fairly Valued.
Can you provide the profitability details for TETRA TECH INC?
TETRA TECH INC (TTEK) has a profitability rating of 7 / 10.
What is the financial health of TETRA TECH INC (TTEK) stock?
The financial health rating of TETRA TECH INC (TTEK) is 6 / 10.
Is the dividend of TETRA TECH INC sustainable?
The dividend rating of TETRA TECH INC (TTEK) is 5 / 10 and the dividend payout ratio is 26.25%.