TETRA TECH INC (TTEK) Stock Fundamental Analysis
USA - NASDAQ:TTEK - US88162G1031 - Common Stock
36.21 USD
-1.2 (-3.21%)
36.21 USD
0 (0%)
Taking everything into account, TTEK scores 5 out of 10 in our fundamental rating. TTEK was compared to 82 industry peers in the Commercial Services & Supplies industry. TTEK has an excellent profitability rating, but there are some minor concerns on its financial health. TTEK has a expensive valuation and it also scores bad on growth.
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.
TTEK had positive earnings in 4 of the past 5 years.
TTEK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.96%, TTEK is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
The Return On Equity of TTEK (12.41%) is better than 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.77%, TTEK belongs to the top of the industry, outperforming 87.80% 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 10.52%.
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
TTEK has a Profit Margin of 4.70%. This is in the better half of the industry: TTEK outperforms 62.20% of its industry peers.
TTEK's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.72%, TTEK is doing good in the industry, outperforming 79.27% of the companies in the same industry.
In the last couple of years the Operating Margin of TTEK has grown nicely.
TTEK's Gross Margin of 20.28% is on the low side compared to the rest of the industry. TTEK is outperformed by 75.61% of its industry peers.
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.
There is no outstanding debt for TTEK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.41 indicates that TTEK is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.41, TTEK is doing good in the industry, outperforming 78.05% of the companies in the same industry.
TTEK has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
TTEK's Debt to FCF ratio of 1.95 is amongst the best of the industry. TTEK outperforms 80.49% of its industry peers.
TTEK has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
TTEK's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. TTEK outperforms 52.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 4.41 |
ROIC/WACC1.66
WACC8.28%
2.3 Liquidity
A Current Ratio of 1.18 indicates that TTEK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.18, TTEK is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.18 indicates that TTEK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, TTEK is in line with its industry, outperforming 40.24% of the companies in the same industry.
| 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 23.61% over the past year.
The Earnings Per Share has been growing by 19.06% on average over the past years. This is quite good.
EPS 1Y (TTM)23.61%
EPS 3Y20.03%
EPS 5Y19.06%
EPS Q2Q%18.42%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.64%
3.2 Future
The Earnings Per Share is expected to grow by 7.35% on average over the next years.
TTEK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
EPS Next Y-3.1%
EPS Next 2Y4.26%
EPS Next 3Y6.16%
EPS Next 5Y7.35%
Revenue Next Year-7.45%
Revenue Next 2Y-0.57%
Revenue Next 3Y1.94%
Revenue Next 5Y2.26%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.21, the valuation of TTEK can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TTEK is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.89. TTEK is around the same levels.
The Price/Forward Earnings ratio is 23.95, which indicates a rather expensive current valuation of TTEK.
TTEK's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TTEK to the average of the S&P500 Index (34.59), we can say TTEK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 23.95 |
4.2 Price Multiples
TTEK's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTEK indicates a somewhat cheap valuation: TTEK is cheaper than 68.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.52 | ||
| EV/EBITDA | 16.19 |
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)1.22
EPS Next 2Y4.26%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
TTEK has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 2.55, TTEK pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.80, TTEK pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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 2Y4.26%
EPS Next 3Y6.16%
36.21
-1.2 (-3.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.2%
Inst Owner Change-2.89%
Ins Owners0.39%
Ins Owner Change-0.14%
Market Cap9.51B
Revenue(TTM)N/A
Net Income(TTM)216.13M
Analysts77.14
Price Target43.45 (19.99%)
Short Float %3.9%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)-1.84%
PT rev (3m)-2.29%
EPS NQ rev (1m)-1.64%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 23.95 | ||
| P/S | 2.07 | ||
| P/FCF | 21.52 | ||
| P/OCF | 20.58 | ||
| P/B | 5.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.19 |
EPS(TTM)1.56
EY4.31%
EPS(NY)1.51
Fwd EY4.17%
FCF(TTM)1.68
FCFY4.65%
OCF(TTM)1.76
OCFY4.86%
SpS17.5
BVpS6.63
TBVpS-1.91
PEG (NY)N/A
PEG (5Y)1.22
Graham Number15.25
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%
ROICexgc growth 3Y12.34%
ROICexgc 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 | 4.41 |
F-Score7
WACC8.28%
ROIC/WACC1.66
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)23.61%
EPS 3Y20.03%
EPS 5Y19.06%
EPS Q2Q%18.42%
EPS Next Y-3.1%
EPS Next 2Y4.26%
EPS Next 3Y6.16%
EPS Next 5Y7.35%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.64%
Revenue Next Year-7.45%
Revenue Next 2Y-0.57%
Revenue Next 3Y1.94%
Revenue Next 5Y2.26%
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%
TETRA TECH INC / TTEK FAQ
What is the ChartMill fundamental rating of TETRA TECH INC (TTEK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TTEK.
What is the valuation status of TETRA TECH INC (TTEK) stock?
ChartMill assigns a valuation rating of 3 / 10 to TETRA TECH INC (TTEK). This can be considered as Overvalued.
What is the profitability of TTEK stock?
TETRA TECH INC (TTEK) has a profitability rating of 7 / 10.
Can you provide the financial health for TTEK stock?
The financial health rating of TETRA TECH INC (TTEK) is 6 / 10.
How sustainable is the dividend of TETRA TECH INC (TTEK) stock?
The dividend rating of TETRA TECH INC (TTEK) is 5 / 10 and the dividend payout ratio is 29.39%.