TETRA TECH INC (TTEK) Stock Fundamental Analysis
NASDAQ:TTEK - Nasdaq - US88162G1031 - Common Stock
TTEK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TTEK had positive earnings in the past year.
In the past year TTEK had a positive cash flow from operations.
Each year in the past 5 years TTEK has been profitable.
Each year in the past 5 years TTEK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.95%, TTEK is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
TTEK has a Return On Equity of 18.21%. This is amongst the best in the industry. TTEK outperforms 82.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.97%, TTEK belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
TTEK had an Average Return On Invested Capital over the past 3 years of 12.29%. This is above the industry average of 10.08%.
| 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
With a decent Profit Margin value of 7.71%, TTEK is doing good in the industry, outperforming 78.05% 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 75.61% of its industry peers.
In the last couple of years the Operating Margin of TTEK has grown nicely.
TTEK has a Gross Margin of 20.05%. This is in the lower half of the industry: TTEK underperforms 73.17% of its industry peers.
TTEK's Gross Margin has improved in the last couple of years.
| 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-5.44%
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.
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.
The debt/assets ratio for TTEK has been reduced compared to a year ago.
2.2 Solvency
TTEK has an Altman-Z score of 5.02. This indicates that TTEK is financially healthy and has little risk of bankruptcy at the moment.
TTEK has a better Altman-Z score (5.02) than 82.93% 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.
Looking at the Debt to FCF ratio, with a value of 2.39, TTEK is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
TTEK has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
TTEK's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. TTEK outperforms 56.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 5.02 |
ROIC/WACC1.36
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.25 indicates that TTEK should not have too much problems paying its short term obligations.
TTEK's Current ratio of 1.25 is on the low side compared to the rest of the industry. TTEK is outperformed by 67.07% of its industry peers.
A Quick Ratio of 1.25 indicates that TTEK should not have too much problems paying its short term obligations.
The Quick ratio of TTEK (1.25) is comparable to the rest of the 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.
The Earnings Per Share has been growing by 14.76% on average over the past years. This is quite good.
TTEK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.22%.
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)15.22%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%8.24%
3.2 Future
TTEK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.88% yearly.
Based on estimates for the next years, TTEK will show a small growth in Revenue. The Revenue will grow by 6.03% on average per year.
EPS Next Y17.76%
EPS Next 2Y15.83%
EPS Next 3Y15.84%
EPS Next 5Y13.88%
Revenue Next Year7.78%
Revenue Next 2Y10.21%
Revenue Next 3Y9.28%
Revenue Next 5Y6.03%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 33.58, the valuation of TTEK can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TTEK is on the same level as its industry peers.
TTEK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.47, TTEK can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as TTEK.
The average S&P500 Price/Forward Earnings ratio is at 24.44. TTEK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 28.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TTEK.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTEK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.26 | ||
| EV/EBITDA | 20.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TTEK does not grow enough to justify the current Price/Earnings ratio.
TTEK has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TTEK's earnings are expected to grow with 15.84% in the coming years.
PEG (NY)1.89
PEG (5Y)2.27
EPS Next 2Y15.83%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, TTEK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.09, TTEK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, TTEK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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
TTEK pays out 17.65% of its income as dividend. This is a sustainable payout ratio.
DP17.65%
EPS Next 2Y15.83%
EPS Next 3Y15.84%
TETRA TECH INC
NASDAQ:TTEK (1/21/2025, 8:00:02 PM)
After market: 42.27 -0.04 (-0.09%)42.31
-0.27 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.63%
Inst Owner Change-2.15%
Ins Owners0.34%
Ins Owner Change-0.08%
Market Cap11.33B
Analysts81.54
Price Target51 (20.54%)
Short Float %1.93%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.22
Dividend Growth(5Y)-16.43%
DP17.65%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.55%
Min EPS beat(2)0.42%
Max EPS beat(2)0.69%
EPS beat(4)4
Avg EPS beat(4)2.84%
Min EPS beat(4)0.42%
Max EPS beat(4)7.92%
EPS beat(8)8
Avg EPS beat(8)7.43%
EPS beat(12)12
Avg EPS beat(12)7.31%
EPS beat(16)16
Avg EPS beat(16)7.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0.78%
Revenue beat(4)3
Avg Revenue beat(4)0.42%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)1.42%
Revenue beat(8)7
Avg Revenue beat(8)5.65%
Revenue beat(12)11
Avg Revenue beat(12)4.35%
Revenue beat(16)14
Avg Revenue beat(16)3.58%
PT rev (1m)-0.66%
PT rev (3m)-0.2%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-80.22%
EPS NY rev (1m)-1.19%
EPS NY rev (3m)-80.27%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)2.83%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 28.47 | ||
| P/S | 2.62 | ||
| P/FCF | 33.26 | ||
| P/OCF | 31.58 | ||
| P/B | 6.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.48 |
EPS(TTM)1.26
EY2.98%
EPS(NY)1.49
Fwd EY3.51%
FCF(TTM)1.27
FCFY3.01%
OCF(TTM)1.34
OCFY3.17%
SpS16.14
BVpS6.84
TBVpS-1.41
PEG (NY)1.89
PEG (5Y)2.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 18.21% | ||
| ROCE | 17.08% | ||
| ROIC | 11.97% | ||
| ROICexc | 12.99% | ||
| ROICexgc | 66.73% | ||
| OM | 11.75% | ||
| PM (TTM) | 7.71% | ||
| GM | 20.05% | ||
| FCFM | 7.88% |
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-Score8
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 24.61% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 13.78 | ||
| Cash Conversion | 61.68% | ||
| Profit Quality | 102.16% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 5.02 |
F-Score8
WACC8.82%
ROIC/WACC1.36
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)13.08%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%6.74%
EPS Next Y17.76%
EPS Next 2Y15.83%
EPS Next 3Y15.84%
EPS Next 5Y13.88%
Revenue 1Y (TTM)15.22%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%8.24%
Revenue Next Year7.78%
Revenue Next 2Y10.21%
Revenue Next 3Y9.28%
Revenue Next 5Y6.03%
EBIT growth 1Y24.58%
EBIT growth 3Y22.14%
EBIT growth 5Y19.68%
EBIT Next Year27.46%
EBIT Next 3Y17.14%
EBIT Next 5Y13.25%
FCF growth 1Y-0.29%
FCF growth 3Y4.81%
FCF growth 5Y12.11%
OCF growth 1Y-2.65%
OCF growth 3Y5.62%
OCF growth 5Y11.46%