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. While TTEK has a great profitability rating, 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
TTEK had positive earnings in the past year.
TTEK had a positive operating cash flow in the past year.
Of the past 5 years TTEK 4 years were profitable.
Of the past 5 years TTEK 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.96%, TTEK is doing good in the industry, outperforming 69.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.41%, TTEK is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
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 10.46%.
The last Return On Invested Capital (13.77%) for TTEK is above the 3 year average (12.29%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 4.70%, TTEK is doing good in the industry, outperforming 62.20% of the companies in the same industry.
TTEK's Profit Margin has improved in the last couple of years.
TTEK's Operating Margin of 12.72% is amongst the best of the industry. TTEK outperforms 80.49% 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 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTEK is creating some value.
TTEK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.33 indicates that TTEK is not in any danger for bankruptcy at the moment.
TTEK has a Altman-Z score of 4.33. This is in the better half of the industry: TTEK outperforms 78.05% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.95, TTEK belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
TTEK has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
TTEK has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.66
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.18 indicates that TTEK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, TTEK is doing worse than 67.07% 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.
Looking at the Quick ratio, with a value of 1.18, TTEK is in line with its industry, outperforming 41.46% 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.
TTEK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.06% yearly.
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
TTEK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.35% yearly.
Based on estimates for the next years, TTEK will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
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
With a Price/Earnings ratio of 23.21, TTEK is valued on the expensive side.
TTEK's Price/Earnings is on the same level as the industry average.
TTEK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 23.95 indicates a rather expensive valuation of TTEK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTEK is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, TTEK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 23.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TTEK.
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 | 21.52 | ||
| EV/EBITDA | 15.7 |
4.3 Compensation for Growth
The decent profitability rating of TTEK 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 0.70%, 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 0.70, TTEK pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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
29.39% of the earnings are spent on dividend by TTEK. This is a low number and 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-0.35%
Ins Owners0.39%
Ins Owner Change-0.17%
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 | 0.7% |
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)-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 | 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 | 15.7 |
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 | 4.33 |
F-Score7
WACC8.31%
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%.