TETRA TECH INC (TTEK) Stock Fundamental Analysis
USA - NASDAQ:TTEK - US88162G1031 - Common Stock
32.58 USD
+0.49 (+1.53%)
32.58 USD
0 (0%)
TTEK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 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 correct valuation and a medium 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.
In the past 5 years TTEK has always been profitable.
Each year in the past 5 years TTEK had a positive operating cash flow.
1.2 Ratios
TTEK has a Return On Assets of 4.96%. This is in the better half of the industry: TTEK outperforms 69.51% of its industry peers.
TTEK has a Return On Equity of 12.41%. This is in the better half of the industry: TTEK outperforms 70.73% of its industry peers.
TTEK has a better Return On Invested Capital (13.77%) than 87.80% of its industry peers.
TTEK had an Average Return On Invested Capital over the past 3 years of 12.29%. This is in line with the industry average of 10.49%.
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's Profit Margin of 4.70% is fine compared to the rest of the industry. TTEK outperforms 62.20% of its industry peers.
In the last couple of years the Profit Margin of TTEK has grown nicely.
TTEK has a better Operating Margin (12.72%) than 78.05% of its industry peers.
TTEK's Operating Margin has improved in the last couple of years.
TTEK has a Gross Margin of 20.28%. 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 | 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
TTEK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TTEK has been increased compared to 1 year ago.
Compared to 5 years ago, TTEK has more shares outstanding
The debt/assets ratio for TTEK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.11 indicates that TTEK is not in any danger for bankruptcy at the moment.
TTEK's Altman-Z score of 4.11 is fine compared to the rest of the industry. TTEK outperforms 75.61% of its industry peers.
The Debt to FCF ratio of TTEK is 1.95, which is an excellent value as it means it would take TTEK, only 1.95 years of fcf income to pay off 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.
A Debt/Equity ratio of 0.50 indicates that TTEK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, TTEK is in line with its industry, outperforming 51.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.67
WACC8.23%
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.
Looking at the Current ratio, with a value of 1.18, TTEK is doing worse than 69.51% of the companies in the same industry.
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's Quick ratio of 1.18 is on the low side compared to the rest of the industry. TTEK is outperformed by 62.20% of its industry peers.
| 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 20.36% over the past year.
Measured over the past years, TTEK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.76% on average per year.
The Revenue has grown by 8.59% in the past year. This is quite good.
The Revenue has been growing by 12.58% on average over the past years. This is quite good.
EPS 1Y (TTM)20.36%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%35.22%
Revenue 1Y (TTM)8.59%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%3.91%
3.2 Future
The Earnings Per Share is expected to grow by 10.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.60% on average over the next years.
EPS Next Y22.52%
EPS Next 2Y9.44%
EPS Next 3Y10.35%
EPS Next 5Y10.08%
Revenue Next Year4.68%
Revenue Next 2Y-1.57%
Revenue Next 3Y1.15%
Revenue Next 5Y2.6%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
With a Price/Earnings ratio of 21.87, TTEK is valued on the expensive side.
TTEK's Price/Earnings ratio is a bit cheaper when compared to the industry. TTEK is cheaper than 62.20% of the companies in the same industry.
When comparing the Price/Earnings ratio of TTEK to the average of the S&P500 Index (26.13), we can say TTEK is valued inline with the index average.
The Price/Forward Earnings ratio is 21.55, which indicates a rather expensive current valuation of TTEK.
Based on the Price/Forward Earnings ratio, TTEK is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.35. TTEK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 21.55 |
4.2 Price Multiples
TTEK's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TTEK is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.36 | ||
| EV/EBITDA | 14.22 |
4.3 Compensation for Growth
TTEK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TTEK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.97
PEG (5Y)1.48
EPS Next 2Y9.44%
EPS Next 3Y10.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.81%, TTEK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.61, TTEK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, TTEK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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 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
29.39% of the earnings are spent on dividend by TTEK. This is a low number and sustainable payout ratio.
DP29.39%
EPS Next 2Y9.44%
EPS Next 3Y10.35%
32.58
+0.49 (+1.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.2%
Inst Owner Change-2.02%
Ins Owners0.39%
Ins Owner Change-0.14%
Market Cap8.56B
Revenue(TTM)4.60B
Net Income(TTM)216.13M
Analysts80
Price Target43.45 (33.36%)
Short Float %3.9%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)-2.29%
PT rev (3m)1.43%
EPS NQ rev (1m)-1.46%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)0%
EPS NY rev (3m)2.88%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-5.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 21.55 | ||
| P/S | 1.86 | ||
| P/FCF | 19.36 | ||
| P/OCF | 18.51 | ||
| P/B | 4.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.22 |
EPS(TTM)1.49
EY4.57%
EPS(NY)1.51
Fwd EY4.64%
FCF(TTM)1.68
FCFY5.17%
OCF(TTM)1.76
OCFY5.4%
SpS17.5
BVpS6.63
TBVpS-1.91
PEG (NY)0.97
PEG (5Y)1.48
Graham Number14.91
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 | 4.11 |
F-Score7
WACC8.23%
ROIC/WACC1.67
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)20.36%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%35.22%
EPS Next Y22.52%
EPS Next 2Y9.44%
EPS Next 3Y10.35%
EPS Next 5Y10.08%
Revenue 1Y (TTM)8.59%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%3.91%
Revenue Next Year4.68%
Revenue Next 2Y-1.57%
Revenue Next 3Y1.15%
Revenue Next 5Y2.6%
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 6 / 10 to TTEK.
What is the valuation status of TETRA TECH INC (TTEK) stock?
ChartMill assigns a valuation rating of 4 / 10 to TETRA TECH INC (TTEK). This can be considered as Fairly Valued.
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%.