TTEC HOLDINGS INC (TTEC) Stock Fundamental Analysis
NASDAQ:TTEC - Nasdaq - US89854H1023 - Common Stock - Currency: USD
Overall TTEC gets a fundamental rating of 3 out of 10. We evaluated TTEC against 82 industry peers in the IT Services industry. TTEC has a bad profitability rating. Also its financial health evaluation is rather negative. TTEC has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
TTEC had positive earnings in the past year.
TTEC had a negative operating cash flow in the past year.
Of the past 5 years TTEC 4 years were profitable.
TTEC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TTEC's Return On Assets of -18.38% is on the low side compared to the rest of the industry. TTEC is outperformed by 82.93% of its industry peers.
Looking at the Return On Equity, with a value of -120.19%, TTEC is doing worse than 85.37% of the companies in the same industry.
TTEC has a Return On Invested Capital (4.80%) which is in line with its industry peers.
TTEC had an Average Return On Invested Capital over the past 3 years of 6.39%. This is significantly below the industry average of 21.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.38% | ||
| ROE | -120.19% | ||
| ROIC | 4.8% |
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 of 3.91%. This is comparable to the rest of the industry: TTEC outperforms 51.22% of its industry peers.
In the last couple of years the Operating Margin of TTEC has declined.
The Gross Margin of TTEC (21.64%) is worse than 79.27% of its industry peers.
In the last couple of years the Gross Margin of TTEC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.91% | ||
| PM (TTM) | N/A | ||
| GM | 21.64% |
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.
TTEC has more shares outstanding than it did 1 year ago.
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
TTEC has an Altman-Z score of 2.18. This is not the best score and indicates that TTEC is in the grey zone with still only limited risk for bankruptcy at the moment.
TTEC has a Altman-Z score (2.18) which is comparable to the rest of the industry.
A Debt/Equity ratio of 3.65 is on the high side and indicates that TTEC has dependencies on debt financing.
TTEC's Debt to Equity ratio of 3.65 is on the low side compared to the rest of the industry. TTEC is outperformed by 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.18 |
ROIC/WACC0.57
WACC8.4%
2.3 Liquidity
TTEC has a Current Ratio of 1.96. This is a normal value and indicates that TTEC is financially healthy and should not expect problems in meeting its short term obligations.
TTEC's Current ratio of 1.96 is fine compared to the rest of the industry. TTEC outperforms 62.20% of its industry peers.
A Quick Ratio of 1.96 indicates that TTEC should not have too much problems paying its short term obligations.
The Quick ratio of TTEC (1.96) is better than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
TTEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.89%.
Measured over the past years, TTEC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.87% on average per year.
The Revenue for TTEC has decreased by -10.02% in the past year. This is quite bad
TTEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.08% yearly.
EPS 1Y (TTM)-56.89%
EPS 3Y-46.44%
EPS 5Y-17.87%
EPS Q2Q%3.7%
Revenue 1Y (TTM)-10.02%
Revenue growth 3Y-0.97%
Revenue growth 5Y6.08%
Sales Q2Q%-7.35%
3.2 Future
Based on estimates for the next years, TTEC will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.22% on average per year.
The Revenue is expected to decrease by -5.09% on average over the next years.
EPS Next Y55.15%
EPS Next 2Y34.81%
EPS Next 3Y18.22%
EPS Next 5YN/A
Revenue Next Year-8.05%
Revenue Next 2Y-4.67%
Revenue Next 3Y-5.09%
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
With a Price/Earnings ratio of 6.94, the valuation of TTEC can be described as very cheap.
Based on the Price/Earnings ratio, TTEC is valued cheaper than 93.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. TTEC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 3.88, the valuation of TTEC can be described as very cheap.
97.56% of the companies in the same industry are more expensive than TTEC, based on the Price/Forward Earnings ratio.
TTEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 3.88 |
4.2 Price Multiples
91.46% of the companies in the same industry are more expensive than TTEC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
TTEC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TTEC's earnings are expected to grow with 18.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y34.81%
EPS Next 3Y18.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.54%, TTEC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.46, TTEC pays a better dividend. On top of this TTEC pays more dividend than 98.78% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TTEC pays a better dividend.
| 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
The earnings of TTEC are negative and hence is the payout ratio. TTEC will probably not be able to sustain this dividend level.
DP-0.9%
EPS Next 2Y34.81%
EPS Next 3Y18.22%
5
+0.03 (+0.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners33.47%
Inst Owner Change0%
Ins Owners59.27%
Ins Owner Change3.05%
Market Cap239.15M
Analysts80
Price Target6.36 (27.2%)
Short Float %15.01%
Short Ratio10.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
Yearly Dividend0.06
Dividend Growth(5Y)-37.34%
DP-0.9%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.79%
Min EPS beat(2)-5.51%
Max EPS beat(2)27.09%
EPS beat(4)1
Avg EPS beat(4)-13.08%
Min EPS beat(4)-53.36%
Max EPS beat(4)27.09%
EPS beat(8)3
Avg EPS beat(8)-6.09%
EPS beat(12)7
Avg EPS beat(12)5.24%
EPS beat(16)11
Avg EPS beat(16)7.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)2.08%
Revenue beat(4)1
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-5.23%
Max Revenue beat(4)2.08%
Revenue beat(8)3
Avg Revenue beat(8)-1.42%
Revenue beat(12)6
Avg Revenue beat(12)-0.55%
Revenue beat(16)9
Avg Revenue beat(16)-0.32%
PT rev (1m)0%
PT rev (3m)12.31%
EPS NQ rev (1m)-7.69%
EPS NQ rev (3m)-16.67%
EPS NY rev (1m)-3.36%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 3.88 | ||
| P/S | 0.11 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.2 |
EPS(TTM)0.72
EY14.4%
EPS(NY)1.29
Fwd EY25.81%
FCF(TTM)-1.23
FCFYN/A
OCF(TTM)-0.45
OCFYN/A
SpS45.27
BVpS5.52
TBVpS-9.72
PEG (NY)0.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.38% | ||
| ROE | -120.19% | ||
| ROCE | 6.08% | ||
| ROIC | 4.8% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 11.56% | ||
| OM | 3.91% | ||
| PM (TTM) | N/A | ||
| GM | 21.64% | ||
| 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-Score4
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 38.85% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 2.18 |
F-Score4
WACC8.4%
ROIC/WACC0.57
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)-56.89%
EPS 3Y-46.44%
EPS 5Y-17.87%
EPS Q2Q%3.7%
EPS Next Y55.15%
EPS Next 2Y34.81%
EPS Next 3Y18.22%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.02%
Revenue growth 3Y-0.97%
Revenue growth 5Y6.08%
Sales Q2Q%-7.35%
Revenue Next Year-8.05%
Revenue Next 2Y-4.67%
Revenue Next 3Y-5.09%
Revenue Next 5YN/A
EBIT growth 1Y-23.2%
EBIT growth 3Y-29.69%
EBIT growth 5Y-8.98%
EBIT Next Year196.08%
EBIT Next 3Y40.56%
EBIT Next 5YN/A
FCF growth 1Y-164.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-112.53%
OCF growth 3YN/A
OCF growth 5YN/A