TTEC HOLDINGS INC (TTEC)
US89854H1023 - Common Stock
Taking everything into account, TTEC scores 3 out of 10 in our fundamental rating. TTEC was compared to 86 industry peers in the IT Services industry. TTEC has a bad profitability rating. Also its financial health evaluation is rather negative. TTEC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TTEC had positive earnings in the past year.
TTEC had a positive operating cash flow in the past year.
TTEC had positive earnings in each of the past 5 years.
TTEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TTEC has a Return On Assets (-0.59%) which is in line with its industry peers.
With a Return On Equity value of -2.10%, TTEC perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
With a Return On Invested Capital value of 4.01%, TTEC perfoms like the industry average, outperforming 58.33% 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 12.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.59% | ||
| ROE | -2.1% | ||
| ROIC | 4.01% |
ROA(3y)4.08%
ROA(5y)5.13%
ROE(3y)15.61%
ROE(5y)18.39%
ROIC(3y)7.03%
ROIC(5y)8.27%
1.3 Margins
In the last couple of years the Profit Margin of TTEC has declined.
Looking at the Operating Margin, with a value of 4.58%, TTEC is in line with its industry, outperforming 58.33% of the companies in the same industry.
TTEC's Operating Margin has declined in the last couple of years.
TTEC's Gross Margin of 20.87% is on the low side compared to the rest of the industry. TTEC is outperformed by 82.14% of its industry peers.
TTEC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.58% | ||
| PM (TTM) | N/A | ||
| GM | 20.87% |
OM growth 3Y-20.47%
OM growth 5Y-3.27%
PM growth 3Y-61.69%
PM growth 5Y-32.11%
GM growth 3Y-6.41%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TTEC is destroying value.
The number of shares outstanding for TTEC has been increased compared to 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
An Altman-Z score of 2.16 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 2.16, TTEC is in line with its industry, outperforming 48.81% of the companies in the same industry.
TTEC has a debt to FCF ratio of 76.71. This is a negative value and a sign of low solvency as TTEC would need 76.71 years to pay back of all of its debts.
The Debt to FCF ratio of TTEC (76.71) is worse than 63.10% of its industry peers.
TTEC has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
TTEC has a worse Debt to Equity ratio (1.60) than 72.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 76.71 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.51
WACC7.83%
2.3 Liquidity
TTEC has a Current Ratio of 1.61. This is a normal value and indicates that TTEC is financially healthy and should not expect problems in meeting its short term obligations.
TTEC has a Current ratio (1.61) which is comparable to the rest of the industry.
TTEC has a Quick Ratio of 1.61. This is a normal value and indicates that TTEC is financially healthy and should not expect problems in meeting its short term obligations.
TTEC has a Quick ratio of 1.61. This is comparable to the rest of the industry: TTEC outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The earnings per share for TTEC have decreased strongly by -50.74% in the last year.
TTEC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.91% yearly.
The Revenue has decreased by -3.30% in the past year.
Measured over the past years, TTEC shows a quite strong growth in Revenue. The Revenue has been growing by 10.29% on average per year.
EPS 1Y (TTM)-50.74%
EPS 3Y-14.68%
EPS 5Y7.91%
EPS growth Q2Q-65.38%
Revenue 1Y (TTM)-3.3%
Revenue growth 3Y8.11%
Revenue growth 5Y10.29%
Revenue growth Q2Q-8.95%
3.2 Future
TTEC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.27% yearly.
TTEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.39% yearly.
EPS Next Y-31.09%
EPS Next 2Y-6.05%
EPS Next 3Y1.27%
EPS Next 5YN/A
Revenue Next Year-5.3%
Revenue Next 2Y-1.07%
Revenue Next 3Y0.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
TTEC is valuated cheaply with a Price/Earnings ratio of 4.36.
Compared to the rest of the industry, the Price/Earnings ratio of TTEC indicates a rather cheap valuation: TTEC is cheaper than 98.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.15, TTEC is valued rather cheaply.
A Price/Forward Earnings ratio of 3.78 indicates a rather cheap valuation of TTEC.
Based on the Price/Forward Earnings ratio, TTEC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.20. TTEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.36 | ||
| Fwd PE | 3.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTEC indicates a rather cheap valuation: TTEC is cheaper than 86.90% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTEC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.8 | ||
| EV/EBITDA | 5.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-6.05%
EPS Next 3Y1.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.66%, TTEC is a good candidate for dividend investing.
In the last 3 months the price of TTEC has falen by -61.15%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.84, TTEC pays a better dividend. On top of this TTEC pays more dividend than 98.81% of the companies listed in the same industry.
TTEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
5.2 History
On average, the dividend of TTEC grows each year by 13.62%, which is quite nice.
TTEC has been paying a dividend for at least 10 years, so it has a reliable track record.
TTEC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.62%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TTEC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of TTEC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-393.7%
EPS Next 2Y-6.05%
EPS Next 3Y1.27%
TTEC HOLDINGS INC
NASDAQ:TTEC (5/17/2024, 7:00:01 PM)
After market: 7.33 +0.05 (+0.69%)7.28
-0.41 (-5.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap345.44M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.36 | ||
| Fwd PE | 3.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.59% | ||
| ROE | -2.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.58% | ||
| PM (TTM) | N/A | ||
| GM | 20.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-50.74%
EPS 3Y-14.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y-31.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.3%
Revenue growth 3Y8.11%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y