TETRA TECH INC (TTEK) Stock Fundamental Analysis
USA - NASDAQ:TTEK - US88162G1031 - Common Stock
33.05 USD
-2.14 (-6.08%)
33.11 USD
+0.06 (+0.18%)
We assign a fundamental rating of 6 out of 10 to TTEK. TTEK was compared to 82 industry peers in the Commercial Services & Supplies industry. TTEK scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, TTEK is valued expensive at the moment. This makes TTEK very considerable 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.
TTEK had positive earnings in each of the past 5 years.
Each year in the past 5 years TTEK had a positive operating cash flow.
1.2 Ratios
TTEK's Return On Assets of 5.79% is fine compared to the rest of the industry. TTEK outperforms 73.17% of its industry peers.
TTEK has a better Return On Equity (13.92%) than 75.61% of its industry peers.
TTEK's Return On Invested Capital of 14.61% is amongst the best of the industry. TTEK outperforms 90.24% of its industry peers.
TTEK had an Average Return On Invested Capital over the past 3 years of 12.37%. This is in line with the industry average of 10.48%.
The 3 year average ROIC (12.37%) for TTEK is below the current ROIC(14.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 13.92% | ||
| ROIC | 14.61% |
ROA(3y)6.96%
ROA(5y)7.99%
ROE(3y)17.21%
ROE(5y)18.54%
ROIC(3y)12.37%
ROIC(5y)12.38%
1.3 Margins
TTEK has a better Profit Margin (5.37%) than 67.07% of its industry peers.
In the last couple of years the Profit Margin of TTEK has declined.
The Operating Margin of TTEK (13.34%) is better than 82.93% of its industry peers.
In the last couple of years the Operating Margin of TTEK has grown nicely.
TTEK has a Gross Margin of 20.82%. This is in the lower half of the industry: TTEK underperforms 74.39% 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.
Compared to 1 year ago, TTEK has less shares outstanding
TTEK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TTEK has an improved debt to assets ratio.
2.2 Solvency
TTEK has an Altman-Z score of 4.45. This indicates that TTEK is financially healthy and has little risk of bankruptcy at the moment.
TTEK has a better Altman-Z score (4.45) than 80.49% of its industry peers.
The Debt to FCF ratio of TTEK is 1.74, which is an excellent value as it means it would take TTEK, only 1.74 years of fcf income to pay off all of its debts.
TTEK has a Debt to FCF ratio of 1.74. This is amongst the best in the industry. TTEK outperforms 82.93% 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 57.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.77
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.18 indicates that TTEK should not have too much problems paying its short term obligations.
The Current ratio of TTEK (1.18) is worse than 67.07% 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 23.61%, which is quite impressive.
The Earnings Per Share has been growing by 19.06% on average over the past years. This is quite good.
Looking at the last year, TTEK shows a small growth in Revenue. The Revenue has grown by 6.84% in the last year.
The Revenue has been growing by 14.48% 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)6.84%
Revenue growth 3Y17.65%
Revenue growth 5Y14.48%
Sales Q2Q%1.64%
3.2 Future
TTEK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.35% yearly.
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.
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
A Price/Earnings ratio of 21.19 indicates a rather expensive valuation of TTEK.
The rest of the industry has a similar Price/Earnings ratio as TTEK.
Compared to an average S&P500 Price/Earnings ratio of 25.45, TTEK is valued at the same level.
TTEK is valuated rather expensively with a Price/Forward Earnings ratio of 21.86.
TTEK's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, TTEK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 21.86 |
4.2 Price Multiples
TTEK's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TTEK is valued a bit cheaper than the industry average as 69.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.78 | ||
| EV/EBITDA | 14.6 |
4.3 Compensation for Growth
The decent profitability rating of TTEK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y4.26%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
TTEK has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 2.55, TTEK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, TTEK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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 2Y4.26%
EPS Next 3Y6.16%
33.05
-2.14 (-6.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.2%
Inst Owner Change-0.35%
Ins Owners0.39%
Ins Owner Change-0.17%
Market Cap8.68B
Revenue(TTM)4.62B
Net Income(TTM)247.72M
Analysts77.14
Price Target43.01 (30.14%)
Short Float %3.21%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend0.25
Dividend Growth(5Y)-17.42%
DP26.25%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.12%
Min EPS beat(2)9.29%
Max EPS beat(2)10.94%
EPS beat(4)4
Avg EPS beat(4)7.46%
Min EPS beat(4)3.88%
Max EPS beat(4)10.94%
EPS beat(8)8
Avg EPS beat(8)5.15%
EPS beat(12)12
Avg EPS beat(12)7.44%
EPS beat(16)16
Avg EPS beat(16)7.35%
Revenue beat(2)1
Avg Revenue beat(2)2.93%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)7.22%
Revenue beat(4)3
Avg Revenue beat(4)4.07%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)7.22%
Revenue beat(8)6
Avg Revenue beat(8)2.24%
Revenue beat(12)10
Avg Revenue beat(12)5.12%
Revenue beat(16)14
Avg Revenue beat(16)4.28%
PT rev (1m)-1.84%
PT rev (3m)-2.29%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)0%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 21.86 | ||
| P/S | 1.88 | ||
| P/FCF | 19.78 | ||
| P/OCF | 18.97 | ||
| P/B | 4.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.6 |
EPS(TTM)1.56
EY4.72%
EPS(NY)1.51
Fwd EY4.57%
FCF(TTM)1.67
FCFY5.06%
OCF(TTM)1.74
OCFY5.27%
SpS17.57
BVpS6.77
TBVpS-1.49
PEG (NY)N/A
PEG (5Y)1.11
Graham Number15.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 13.92% | ||
| ROCE | 21.24% | ||
| ROIC | 14.61% | ||
| ROICexc | 15.51% | ||
| ROICexgc | 75.49% | ||
| OM | 13.34% | ||
| PM (TTM) | 5.37% | ||
| GM | 20.82% | ||
| FCFM | 9.51% |
ROA(3y)6.96%
ROA(5y)7.99%
ROE(3y)17.21%
ROE(5y)18.54%
ROIC(3y)12.37%
ROIC(5y)12.38%
ROICexc(3y)13.25%
ROICexc(5y)13.48%
ROICexgc(3y)71.02%
ROICexgc(5y)64.12%
ROCE(3y)17.97%
ROCE(5y)18%
ROICexgc growth 3Y7.19%
ROICexgc growth 5Y12.41%
ROICexc growth 3Y0.25%
ROICexc growth 5Y4.61%
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%
F-Score7
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.74 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 31.97% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 17.62 | ||
| Cash Conversion | 67.89% | ||
| Profit Quality | 177.23% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.45 |
F-Score7
WACC8.27%
ROIC/WACC1.77
Cap/Depr(3y)33.51%
Cap/Depr(5y)35.19%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.45%
Profit Quality(3y)134.77%
Profit Quality(5y)131.02%
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)6.84%
Revenue growth 3Y17.65%
Revenue growth 5Y14.48%
Sales Q2Q%1.64%
Revenue Next Year-7.45%
Revenue Next 2Y-0.57%
Revenue Next 3Y1.94%
Revenue Next 5Y2.26%
EBIT growth 1Y21.26%
EBIT growth 3Y21.84%
EBIT growth 5Y19.11%
EBIT Next Year8.88%
EBIT Next 3Y7.61%
EBIT Next 5Y7.67%
FCF growth 1Y28.92%
FCF growth 3Y10.48%
FCF growth 5Y11.9%
OCF growth 1Y27.59%
OCF growth 3Y10.83%
OCF growth 5Y11.76%
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 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 7 / 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 26.25%.