TTEC HOLDINGS INC (TTEC) Stock Fundamental Analysis
USA - NASDAQ:TTEC - US89854H1023 - Common Stock
3.74 USD
-0.05 (-1.32%)
3.67 USD
-0.07 (-1.87%)
Overall TTEC gets a fundamental rating of 3 out of 10. We evaluated TTEC against 86 industry peers in the IT Services industry. Both the profitability and financial health of TTEC have multiple concerns. TTEC is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TTEC was profitable.
TTEC had a positive operating cash flow in the past year.
Of the past 5 years TTEC 4 years were profitable.
Of the past 5 years TTEC 4 years had a positive operating cash flow.
1.2 Ratios
TTEC's Return On Assets of -1.52% is in line compared to the rest of the industry. TTEC outperforms 41.86% of its industry peers.
TTEC has a Return On Equity of -9.26%. This is comparable to the rest of the industry: TTEC outperforms 40.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.18%, TTEC is in line with its industry, outperforming 58.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TTEC is significantly below the industry average of 21.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.52% | ||
| ROE | -9.26% | ||
| ROIC | 5.18% |
ROA(3y)-4.38%
ROA(5y)0.35%
ROE(3y)-36.14%
ROE(5y)-10.95%
ROIC(3y)6.39%
ROIC(5y)9.26%
1.3 Margins
TTEC has a Operating Margin (4.10%) which is in line with its industry peers.
TTEC's Operating Margin has declined in the last couple of years.
TTEC has a worse Gross Margin (21.76%) than 80.23% of its industry peers.
TTEC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.1% | ||
| PM (TTM) | N/A | ||
| GM | 21.76% |
OM growth 3Y-29.01%
OM growth 5Y-14.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.03%
GM growth 5Y-3.42%
2. Health
2.1 Basic Checks
TTEC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TTEC has more shares outstanding
The number of shares outstanding for TTEC has been increased compared to 5 years ago.
TTEC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.15 indicates that TTEC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.15, TTEC is in line with its industry, outperforming 41.86% of the companies in the same industry.
TTEC has a Debt/Equity ratio of 3.18. This is a high value indicating a heavy dependency on external financing.
TTEC has a Debt to Equity ratio of 3.18. This is amonst the worse of the industry: TTEC underperforms 84.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC0.65
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.77 indicates that TTEC should not have too much problems paying its short term obligations.
TTEC has a Current ratio of 1.77. This is comparable to the rest of the industry: TTEC outperforms 53.49% of its industry peers.
A Quick Ratio of 1.77 indicates that TTEC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.77, TTEC is in line with its industry, outperforming 55.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
TTEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.51%.
TTEC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.87% yearly.
Looking at the last year, TTEC shows a decrease in Revenue. The Revenue has decreased by -8.34% in the last year.
TTEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
EPS 1Y (TTM)-36.51%
EPS 3Y-46.44%
EPS 5Y-17.87%
EPS Q2Q%57.14%
Revenue 1Y (TTM)-8.34%
Revenue growth 3Y-0.97%
Revenue growth 5Y6.08%
Sales Q2Q%-3.84%
3.2 Future
TTEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.23% yearly.
TTEC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.31% yearly.
EPS Next Y55.87%
EPS Next 2Y39.26%
EPS Next 3Y26.23%
EPS Next 5YN/A
Revenue Next Year-5.8%
Revenue Next 2Y-2.71%
Revenue Next 3Y-0.31%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
TTEC is valuated cheaply with a Price/Earnings ratio of 4.67.
TTEC's Price/Earnings ratio is rather cheap when compared to the industry. TTEC is cheaper than 96.51% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. TTEC is valued rather cheaply when compared to this.
TTEC is valuated cheaply with a Price/Forward Earnings ratio of 2.72.
Based on the Price/Forward Earnings ratio, TTEC is valued cheaper than 100.00% of the companies in the same industry.
TTEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.68 | ||
| Fwd PE | 2.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTEC is valued cheaply inside the industry as 94.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.43 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TTEC's earnings are expected to grow with 26.23% in the coming years.
PEG (NY)0.08
PEG (5Y)N/A
EPS Next 2Y39.26%
EPS Next 3Y26.23%
5. Dividend
5.1 Amount
TTEC has a Yearly Dividend Yield of 5.54%, which is a nice return.
In the last 3 months the price of TTEC has falen by -24.44%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TTEC's Dividend Yield is rather good when compared to the industry average which is at 2.38. TTEC pays more dividend than 98.84% of the companies in the same industry.
TTEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
The dividend of TTEC decreases each year by -37.34%.
TTEC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-37.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y39.26%
EPS Next 3Y26.23%
3.74
-0.05 (-1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners33.96%
Inst Owner Change-7.45%
Ins Owners59.29%
Ins Owner Change2.67%
Market Cap181.24M
Analysts80
Price Target5.1 (36.36%)
Short Float %18.1%
Short Ratio8.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Yearly Dividend0.06
Dividend Growth(5Y)-37.34%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.47%
Min EPS beat(2)7.84%
Max EPS beat(2)27.09%
EPS beat(4)2
Avg EPS beat(4)2.22%
Min EPS beat(4)-20.53%
Max EPS beat(4)27.09%
EPS beat(8)3
Avg EPS beat(8)-6.98%
EPS beat(12)7
Avg EPS beat(12)4.81%
EPS beat(16)11
Avg EPS beat(16)5.94%
Revenue beat(2)2
Avg Revenue beat(2)1.52%
Min Revenue beat(2)0.96%
Max Revenue beat(2)2.08%
Revenue beat(4)2
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)2.08%
Revenue beat(8)4
Avg Revenue beat(8)-1.16%
Revenue beat(12)7
Avg Revenue beat(12)-0.33%
Revenue beat(16)9
Avg Revenue beat(16)-0.39%
PT rev (1m)-27.01%
PT rev (3m)-19.79%
EPS NQ rev (1m)-10.89%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)0.46%
EPS NY rev (3m)-2.91%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)2.45%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.68 | ||
| Fwd PE | 2.72 | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | 8.3 | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.43 |
EPS(TTM)0.8
EY21.39%
EPS(NY)1.38
Fwd EY36.82%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.45
OCFY12.05%
SpS44.26
BVpS5.73
TBVpS-9.2
PEG (NY)0.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.52% | ||
| ROE | -9.26% | ||
| ROCE | 6.56% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 13.03% | ||
| OM | 4.1% | ||
| PM (TTM) | N/A | ||
| GM | 21.76% | ||
| FCFM | N/A |
ROA(3y)-4.38%
ROA(5y)0.35%
ROE(3y)-36.14%
ROE(5y)-10.95%
ROIC(3y)6.39%
ROIC(5y)9.26%
ROICexc(3y)6.98%
ROICexc(5y)10.29%
ROICexgc(3y)18.74%
ROICexgc(5y)26.23%
ROCE(3y)8.09%
ROCE(5y)11.72%
ROICexcg growth 3Y-35.71%
ROICexcg growth 5Y-11.12%
ROICexc growth 3Y-28.3%
ROICexc growth 5Y-15.05%
OM growth 3Y-29.01%
OM growth 5Y-14.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.03%
GM growth 5Y-3.42%
F-Score5
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.87 | ||
| Cap/Depr | 32.23% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 1.11 | ||
| Cash Conversion | 12.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 2.15 |
F-Score5
WACC7.98%
ROIC/WACC0.65
Cap/Depr(3y)62.75%
Cap/Depr(5y)65.3%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.51%
EPS 3Y-46.44%
EPS 5Y-17.87%
EPS Q2Q%57.14%
EPS Next Y55.87%
EPS Next 2Y39.26%
EPS Next 3Y26.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.34%
Revenue growth 3Y-0.97%
Revenue growth 5Y6.08%
Sales Q2Q%-3.84%
Revenue Next Year-5.8%
Revenue Next 2Y-2.71%
Revenue Next 3Y-0.31%
Revenue Next 5YN/A
EBIT growth 1Y-4.55%
EBIT growth 3Y-29.69%
EBIT growth 5Y-8.98%
EBIT Next Year193.24%
EBIT Next 3Y40.56%
EBIT Next 5YN/A
FCF growth 1Y-107.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.54%
OCF growth 3YN/A
OCF growth 5YN/A