TETRA TECH INC (TTEK) Stock Fundamental Analysis
USA - NASDAQ:TTEK - US88162G1031 - Common Stock
36.14 USD
-0.05 (-0.14%)
36.14 USD
0 (0%)
TTEK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 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 decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years TTEK has been profitable.
TTEK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.96%, TTEK is doing good in the industry, outperforming 67.86% of the companies in the same industry.
TTEK has a better Return On Equity (12.41%) than 71.43% of its industry peers.
The Return On Invested Capital of TTEK (13.77%) is better than 88.10% 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 10.60%.
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
TTEK's Profit Margin of 4.70% is fine compared to the rest of the industry. TTEK outperforms 61.90% of its industry peers.
In the last couple of years the Profit Margin of TTEK has grown nicely.
TTEK has a Operating Margin of 12.72%. This is in the better half of the industry: TTEK outperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of TTEK has grown nicely.
With a Gross Margin value of 20.28%, TTEK is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTEK is creating some value.
Compared to 1 year ago, TTEK has more shares outstanding
TTEK has more shares outstanding than it did 5 years ago.
TTEK has a better debt/assets ratio than last year.
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 better Altman-Z score (4.33) than 72.62% 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.
Looking at the Debt to FCF ratio, with a value of 1.95, TTEK belongs to the top of the industry, outperforming 80.95% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.67
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.18 indicates that TTEK should not have too much problems paying its short term obligations.
TTEK has a Current ratio of 1.18. This is in the lower half of the industry: TTEK underperforms 69.05% of its industry peers.
A Quick Ratio of 1.18 indicates that TTEK should not have too much problems paying its short term obligations.
The Quick ratio of TTEK (1.18) is worse than 60.71% 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.
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 8.59%.
TTEK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.58% yearly.
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
TTEK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.08% yearly.
The Revenue is expected to grow by 2.60% on average over the next years.
EPS Next Y22.52%
EPS Next 2Y11.27%
EPS Next 3Y11.49%
EPS Next 5Y10.08%
Revenue Next Year4.82%
Revenue Next 2Y0.37%
Revenue Next 3Y4.26%
Revenue Next 5Y2.6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 24.26, which indicates a rather expensive current valuation of TTEK.
Based on the Price/Earnings ratio, TTEK is valued a bit cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TTEK is valued at the same level.
A Price/Forward Earnings ratio of 23.13 indicates a rather expensive valuation of TTEK.
63.10% of the companies in the same industry are more expensive than TTEK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, TTEK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 23.13 |
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 72.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.47 | ||
| EV/EBITDA | 15.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TTEK may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)1.64
EPS Next 2Y11.27%
EPS Next 3Y11.49%
5. Dividend
5.1 Amount
TTEK has a yearly dividend return of 0.72%, which is pretty low.
TTEK's Dividend Yield is a higher than the industry average which is at 2.27.
With a Dividend Yield of 0.72, TTEK pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
TTEK pays out 29.39% of its income as dividend. This is a sustainable payout ratio.
DP29.39%
EPS Next 2Y11.27%
EPS Next 3Y11.49%
36.14
-0.05 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.04%
Inst Owner Change1.58%
Ins Owners0.39%
Ins Owner Change-0.14%
Market Cap9.50B
Analysts80
Price Target44.47 (23.05%)
Short Float %4.07%
Short Ratio5.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)0%
PT rev (3m)6.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)2.88%
EPS NY rev (3m)3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.06%
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 23.13 | ||
| P/S | 2.07 | ||
| P/FCF | 21.47 | ||
| P/OCF | 20.54 | ||
| P/B | 5.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.67 |
EPS(TTM)1.49
EY4.12%
EPS(NY)1.56
Fwd EY4.32%
FCF(TTM)1.68
FCFY4.66%
OCF(TTM)1.76
OCFY4.87%
SpS17.5
BVpS6.63
TBVpS-1.91
PEG (NY)1.08
PEG (5Y)1.64
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%
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-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
WACC8.24%
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 2Y11.27%
EPS Next 3Y11.49%
EPS Next 5Y10.08%
Revenue 1Y (TTM)8.59%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%3.91%
Revenue Next Year4.82%
Revenue Next 2Y0.37%
Revenue Next 3Y4.26%
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%