TETRA TECH INC (TTEK)
US88162G1031 - Common Stock
Taking everything into account, TTEK scores 6 out of 10 in our fundamental rating. TTEK was compared to 84 industry peers in the Commercial Services & Supplies industry. TTEK scores excellent on profitability, but 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.
In the past year TTEK had a positive cash flow from operations.
In the past 5 years TTEK has always been profitable.
TTEK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TTEK has a Return On Assets of 7.95%. This is in the better half of the industry: TTEK outperforms 78.57% of its industry peers.
TTEK has a Return On Equity of 18.21%. This is amongst the best in the industry. TTEK outperforms 82.14% of its industry peers.
TTEK has a better Return On Invested Capital (11.97%) than 82.14% 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 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 18.21% | ||
| ROIC | 11.97% |
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 7.71%, TTEK is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
TTEK's Profit Margin has improved in the last couple of years.
The Operating Margin of TTEK (11.75%) is better than 75.00% 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 20.05%, TTEK is doing worse than 70.24% 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 | 11.75% | ||
| PM (TTM) | 7.71% | ||
| GM | 20.05% |
OM growth 3Y2.48%
OM growth 5Y6.3%
PM growth 3Y-5.43%
PM growth 5Y3.04%
GM growth 3Y0.88%
GM growth 5Y3.25%
2. Health
2.1 Basic Checks
TTEK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TTEK has more shares outstanding
The number of shares outstanding for TTEK has been increased compared to 5 years ago.
TTEK has a better debt/assets ratio than last year.
2.2 Solvency
TTEK has an Altman-Z score of 4.88. This indicates that TTEK is financially healthy and has little risk of bankruptcy at the moment.
TTEK's Altman-Z score of 4.88 is fine compared to the rest of the industry. TTEK outperforms 79.76% of its industry peers.
The Debt to FCF ratio of TTEK is 2.39, which is a good value as it means it would take TTEK, 2.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TTEK (2.39) is better than 76.19% of its industry peers.
TTEK has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
TTEK has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: TTEK outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 4.88 |
ROIC/WACC1.39
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.25 indicates that TTEK should not have too much problems paying its short term obligations.
TTEK has a worse Current ratio (1.25) than 69.05% of its industry peers.
A Quick Ratio of 1.25 indicates that TTEK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, TTEK is in line with its industry, outperforming 44.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.08% over the past year.
TTEK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.76% yearly.
The Revenue has grown by 15.21% in the past year. This is quite good.
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)13.08%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%6.74%
Revenue 1Y (TTM)15.21%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%8.24%
3.2 Future
The Earnings Per Share is expected to grow by 52.99% on average over the next years. This is a very strong growth
Based on estimates for the next years, TTEK will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
EPS Next Y21.08%
EPS Next 2Y17.11%
EPS Next 3Y92.39%
EPS Next 5Y52.99%
Revenue Next Year8.09%
Revenue Next 2Y8.21%
Revenue Next 3Y5.5%
Revenue Next 5Y5.28%
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 accelerating.
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
TTEK is valuated quite expensively with a Price/Earnings ratio of 32.37.
Compared to the rest of the industry, the Price/Earnings ratio of TTEK is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TTEK to the average of the S&P500 Index (28.65), we can say TTEK is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.70, the valuation of TTEK can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTEK indicates a somewhat cheap valuation: TTEK is cheaper than 60.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. TTEK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 26.7 |
4.2 Price Multiples
TTEK's Enterprise Value to EBITDA ratio is in line with the industry average.
TTEK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.06 | ||
| EV/EBITDA | 19.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TTEK may justify a higher PE ratio.
TTEK's earnings are expected to grow with 92.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)2.19
EPS Next 2Y17.11%
EPS Next 3Y92.39%
5. Dividend
5.1 Amount
TTEK has a yearly dividend return of 0.58%, which is pretty low.
Compared to an average industry Dividend Yield of 2.10, TTEK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, TTEK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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 its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-16.43%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
TTEK pays out 17.65% of its income as dividend. This is a sustainable payout ratio.
DP17.65%
EPS Next 2Y17.11%
EPS Next 3Y92.39%
TETRA TECH INC
NASDAQ:TTEK (11/21/2024, 4:06:32 PM)
After market: 40.79 0 (0%)40.79
+0.57 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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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(12)
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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 | 32.37 | ||
| Fwd PE | 26.7 | ||
| 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)1.54
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 18.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.75% | ||
| PM (TTM) | 7.71% | ||
| GM | 20.05% | ||
| 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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| 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)13.08%
EPS 3Y18.52%
EPS 5Y
EPS Q2Q%
EPS Next Y21.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.21%
Revenue growth 3Y19.19%
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