TTEC HOLDINGS INC (TTEC) Stock Fundamental Analysis
USA - NASDAQ:TTEC - US89854H1023 - Common Stock
3.53 USD
-0.12 (-3.29%)
3.53 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TTEC. TTEC was compared to 86 industry peers in the IT Services industry. Both the profitability and financial health of TTEC have multiple concerns. TTEC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TTEC had positive earnings in the past year.
In the past year TTEC had a positive cash flow from operations.
TTEC had positive earnings in 4 of the past 5 years.
Of the past 5 years TTEC 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -1.52%, TTEC is not doing good in the industry: 60.47% of the companies in the same industry are doing better.
TTEC has a worse Return On Equity (-9.26%) than 61.63% of its industry peers.
With a Return On Invested Capital value of 5.18%, TTEC perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
TTEC had an Average Return On Invested Capital over the past 3 years of 6.39%. This is significantly below the industry average of 21.39%.
| 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's Operating Margin of 4.10% is in line compared to the rest of the industry. TTEC outperforms 51.16% of its industry peers.
TTEC's Operating Margin has declined in the last couple of years.
The Gross Margin of TTEC (21.76%) is worse than 81.40% 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.
TTEC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TTEC has more shares outstanding
Compared to 1 year ago, TTEC has a worse debt to assets ratio.
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.
TTEC has a Altman-Z score of 2.15. This is comparable to the rest of the industry: TTEC outperforms 40.70% of its industry peers.
TTEC has a Debt/Equity ratio of 3.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.18, TTEC is not doing good in the industry: 84.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC0.66
WACC7.89%
2.3 Liquidity
A Current Ratio of 1.77 indicates that TTEC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.77, TTEC is in line with its industry, outperforming 54.65% of the companies in the same industry.
A Quick Ratio of 1.77 indicates that TTEC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.77, TTEC perfoms like the industry average, outperforming 56.98% 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%.
The earnings per share for TTEC have been decreasing by -17.87% on average. This is quite bad
Looking at the last year, TTEC shows a decrease in Revenue. The Revenue has decreased by -8.34% in the last year.
The Revenue has been growing slightly by 6.08% on average over the past years.
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
Based on estimates for the next years, TTEC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.23% on average per year.
Based on estimates for the next years, TTEC will show a decrease in Revenue. The Revenue will decrease by -0.31% on average per year.
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.
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 4.41, which indicates a rather cheap valuation of TTEC.
Based on the Price/Earnings ratio, TTEC is valued cheaper than 95.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of TTEC to the average of the S&P500 Index (27.57), we can say TTEC is valued rather cheaply.
A Price/Forward Earnings ratio of 2.56 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 23.09. TTEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.41 | ||
| Fwd PE | 2.56 |
4.2 Price Multiples
TTEC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TTEC is cheaper than 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.39 |
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.
TTEC's earnings are expected to grow with 26.23% in the coming years. This may justify a more expensive valuation.
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 -32.89%. 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 2.57, TTEC pays a better dividend. On top of this TTEC pays more dividend than 98.84% 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 2.32.
| 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%
3.53
-0.12 (-3.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners30.44%
Inst Owner Change-0.01%
Ins Owners58.52%
Ins Owner Change3.45%
Market Cap171.06M
Revenue(TTM)2.14B
Net Income(TTM)-25724000
Analysts80
Price Target5.1 (44.48%)
Short Float %18.11%
Short Ratio8.39
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)0%
PT rev (3m)-19.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.89%
EPS NY rev (1m)0%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.41 | ||
| Fwd PE | 2.56 | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | 7.83 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.39 |
EPS(TTM)0.8
EY22.66%
EPS(NY)1.38
Fwd EY39.01%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)0.45
OCFY12.77%
SpS44.26
BVpS5.73
TBVpS-9.2
PEG (NY)0.08
PEG (5Y)N/A
Graham Number10.16
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%
ROICexgc growth 3Y-35.71%
ROICexgc 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
WACC7.89%
ROIC/WACC0.66
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 Year193.01%
EBIT Next 3Y45.69%
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