TETRA TECH INC (TTEK)
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. While TTEK has a great profitability rating, there are some minor concerns on its financial health. TTEK is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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
With a decent Return On Assets value of 7.95%, TTEK is doing good in the industry, outperforming 78.31% 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 83.13% of its industry peers.
The Return On Invested Capital of TTEK (11.97%) is better than 81.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TTEK is above the industry average of 10.00%.
| 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
TTEK has a Profit Margin of 7.71%. This is in the better half of the industry: TTEK outperforms 78.31% of its industry peers.
TTEK's Profit Margin has improved in the last couple of years.
TTEK has a better Operating Margin (11.75%) than 74.70% of its industry peers.
TTEK's Operating Margin has improved in the last couple of years.
TTEK has a Gross Margin of 20.05%. This is in the lower half of the industry: TTEK underperforms 71.08% of its industry peers.
In the last couple of years the Gross Margin of TTEK has grown nicely.
| 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-5.43%
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.
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
An Altman-Z score of 4.88 indicates that TTEK is not in any danger for bankruptcy at the moment.
TTEK has a better Altman-Z score (4.88) than 79.52% of its industry peers.
TTEK has a debt to FCF ratio of 2.39. This is a good value and a sign of high solvency as TTEK would need 2.39 years to pay back of all of its debts.
TTEK has a better Debt to FCF ratio (2.39) than 77.11% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that TTEK is not too dependend on debt financing.
The Debt to Equity ratio of TTEK (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 4.88 |
ROIC/WACC1.37
WACC8.76%
2.3 Liquidity
TTEK has a Current Ratio of 1.25. This is a normal value and indicates that TTEK is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, TTEK is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
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.
The Revenue has grown by 15.21% in the past year. This is quite good.
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)15.21%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%8.24%
3.2 Future
The Earnings Per Share is expected to grow by 13.88% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.03% on average over the next years.
EPS Next Y19.18%
EPS Next 2Y16.64%
EPS Next 3Y16.97%
EPS Next 5Y13.88%
Revenue Next Year7.32%
Revenue Next 2Y7.19%
Revenue Next 3Y8.07%
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.
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
TTEK is valuated quite expensively with a Price/Earnings ratio of 31.90.
TTEK's Price/Earnings ratio is in line with the industry average.
TTEK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
TTEK is valuated quite expensively with a Price/Forward Earnings ratio of 26.73.
TTEK's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. TTEK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.9 | ||
| Fwd PE | 26.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTEK is on the same level as its industry peers.
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 | 31.6 | ||
| EV/EBITDA | 19.55 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 16.97% in the coming years.
PEG (NY)1.66
PEG (5Y)2.16
EPS Next 2Y16.64%
EPS Next 3Y16.97%
5. Dividend
5.1 Amount
TTEK has a yearly dividend return of 0.56%, which is pretty low.
TTEK's Dividend Yield is a higher than the industry average which is at 1.99.
Compared to an average S&P500 Dividend Yield of 2.24, TTEK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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 2Y16.64%
EPS Next 3Y16.97%
TETRA TECH INC
NASDAQ:TTEK (12/20/2024, 8:00:01 PM)
After market: 40.2 0 (0%)40.2
-0.1 (-0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners86.07%
Inst Owner Change373.38%
Ins Owners0.63%
Ins Owner Change-0.08%
Market Cap10.76B
Analysts81.54
Price Target51.34 (27.71%)
Short Float %1.77%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Dividend Growth(5Y)-16.43%
DP17.65%
Div Incr Years10
Div Non Decr Years10
Ex-Date
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)3.57%
PT rev (1m)-1.82%
PT rev (3m)-79.92%
EPS NQ rev (1m)-80%
EPS NQ rev (3m)-80%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-80.03%
Revenue NQ rev (1m)2.56%
Revenue NQ rev (3m)2.56%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.9 | ||
| Fwd PE | 26.73 | ||
| P/S | 2.49 | ||
| P/FCF | 31.6 | ||
| P/OCF | 30.01 | ||
| P/B | 5.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.55 |
EPS(TTM)1.26
EY3.13%
EPS(NY)1.5
Fwd EY3.74%
FCF(TTM)1.27
FCFY3.16%
OCF(TTM)1.34
OCFY3.33%
SpS16.14
BVpS6.84
TBVpS-1.41
PEG (NY)1.66
PEG (5Y)2.16
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-5.43%
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 | 4.88 |
F-Score8
WACC8.76%
ROIC/WACC1.37
Cap/Depr(3y)35.94%
Cap/Depr(5y)38.71%
Cap/Sales(3y)0.5%
Cap/Sales(5y)0.47%
Profit Quality(3y)116.95%
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 Y19.18%
EPS Next 2Y16.64%
EPS Next 3Y16.97%
EPS Next 5Y13.88%
Revenue 1Y (TTM)15.21%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%8.24%
Revenue Next Year7.32%
Revenue Next 2Y7.19%
Revenue Next 3Y8.07%
Revenue Next 5Y6.03%
EBIT growth 1Y24.56%
EBIT growth 3Y22.14%
EBIT growth 5Y19.67%
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%