TETRA TECH INC (TTEK) Stock Fundamental Analysis
NASDAQ:TTEK - Nasdaq - US88162G1031 - Common Stock - Currency: USD
Taking everything into account, TTEK scores 5 out of 10 in our fundamental rating. TTEK was compared to 83 industry peers in the Commercial Services & Supplies industry. TTEK has an excellent profitability rating, but there are some minor concerns on its financial health. TTEK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TTEK had positive earnings in the past year.
In the past year TTEK had a positive cash flow from operations.
Each year in the past 5 years TTEK has been profitable.
In the past 5 years TTEK always reported a positive cash flow from operatings.
1.2 Ratios
TTEK has a better Return On Assets (4.50%) than 62.65% of its industry peers.
TTEK's Return On Equity of 11.95% is fine compared to the rest of the industry. TTEK outperforms 67.47% of its industry peers.
TTEK's Return On Invested Capital of 14.41% is amongst the best of the industry. TTEK outperforms 85.54% of its industry peers.
TTEK had an Average Return On Invested Capital over the past 3 years of 12.29%. This is in line with the industry average of 11.67%.
The last Return On Invested Capital (14.41%) for TTEK is above the 3 year average (12.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 11.95% | ||
| ROIC | 14.41% |
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 4.13%. This is comparable to the rest of the industry: TTEK outperforms 59.04% of its industry peers.
In the last couple of years the Profit Margin of TTEK has grown nicely.
With a decent Operating Margin value of 12.04%, TTEK is doing good in the industry, outperforming 75.90% of the companies in the same industry.
In the last couple of years the Operating Margin of TTEK has grown nicely.
TTEK's Gross Margin of 19.85% is on the low side compared to the rest of the industry. TTEK is outperformed by 73.49% of its industry peers.
In the last couple of years the Gross Margin of TTEK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.04% | ||
| PM (TTM) | 4.13% | ||
| GM | 19.85% |
OM growth 3Y2.48%
OM growth 5Y6.3%
PM growth 3Y-5.44%
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.
Compared to 1 year ago, TTEK has more shares outstanding
Compared to 5 years ago, TTEK has more shares outstanding
The debt/assets ratio for TTEK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.27 indicates that TTEK is not in any danger for bankruptcy at the moment.
TTEK has a Altman-Z score of 4.27. This is in the better half of the industry: TTEK outperforms 75.90% of its industry peers.
TTEK has a debt to FCF ratio of 4.34. This is a neutral value as TTEK would need 4.34 years to pay back of all of its debts.
TTEK has a better Debt to FCF ratio (4.34) than 69.88% of its industry peers.
TTEK has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
TTEK has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.27 |
ROIC/WACC1.45
WACC9.92%
2.3 Liquidity
TTEK has a Current Ratio of 1.10. This is a normal value and indicates that TTEK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.10, TTEK is doing worse than 72.29% of the companies in the same industry.
TTEK has a Quick Ratio of 1.10. This is a normal value and indicates that TTEK is financially healthy and should not expect problems in meeting its short term obligations.
TTEK has a worse Quick ratio (1.10) than 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.98% over the past year.
Measured over the past years, TTEK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.76% on average per year.
Looking at the last year, TTEK shows a quite strong growth in Revenue. The Revenue has grown by 10.76% in the last year.
The Revenue has been growing by 12.58% on average over the past years. This is quite good.
EPS 1Y (TTM)16.98%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%16.2%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%4.85%
3.2 Future
The Earnings Per Share is expected to grow by 10.08% on average over the next years. This is quite good.
Based on estimates for the next years, TTEK will show a small growth in Revenue. The Revenue will grow by 2.60% on average per year.
EPS Next Y19.08%
EPS Next 2Y11.63%
EPS Next 3Y12.19%
EPS Next 5Y10.08%
Revenue Next Year6.28%
Revenue Next 2Y2.01%
Revenue Next 3Y2.65%
Revenue Next 5Y2.6%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 25.64, which means the current valuation is very expensive for TTEK.
Compared to the rest of the industry, the Price/Earnings ratio of TTEK indicates a somewhat cheap valuation: TTEK is cheaper than 60.24% of the companies listed in the same industry.
TTEK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.65.
A Price/Forward Earnings ratio of 22.51 indicates a rather expensive valuation of TTEK.
Based on the Price/Forward Earnings ratio, TTEK is valued a bit cheaper than 61.45% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TTEK to the average of the S&P500 Index (21.27), we can say TTEK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 22.51 |
4.2 Price Multiples
TTEK's Enterprise Value to EBITDA is on the same level as the industry average.
TTEK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.9 | ||
| EV/EBITDA | 16.43 |
4.3 Compensation for Growth
TTEK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TTEK may justify a higher PE ratio.
TTEK's earnings are expected to grow with 12.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)1.74
EPS Next 2Y11.63%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, TTEK is not a good candidate for dividend investing.
TTEK's Dividend Yield is a higher than the industry average which is at 2.53.
With a Dividend Yield of 0.73, TTEK pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of TTEK decreases each year by -16.43%.
TTEK has been paying a dividend for at least 10 years, so it has a reliable track record.
TTEK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-16.43%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
TTEK pays out 32.93% of its income as dividend. This is a sustainable payout ratio.
DP32.93%
EPS Next 2Y11.63%
EPS Next 3Y12.19%
35.39
+0.2 (+0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99.12%
Inst Owner Change3.01%
Ins Owners0.39%
Ins Owner Change-0.44%
Market Cap9.33B
Analysts80
Price Target42.84 (21.05%)
Short Float %3.76%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.22
Dividend Growth(5Y)-16.43%
DP32.93%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.8%
Min EPS beat(2)3.88%
Max EPS beat(2)5.73%
EPS beat(4)4
Avg EPS beat(4)2.68%
Min EPS beat(4)0.42%
Max EPS beat(4)5.73%
EPS beat(8)8
Avg EPS beat(8)6.18%
EPS beat(12)12
Avg EPS beat(12)6.44%
EPS beat(16)16
Avg EPS beat(16)6.67%
Revenue beat(2)2
Avg Revenue beat(2)5.22%
Min Revenue beat(2)3.83%
Max Revenue beat(2)6.62%
Revenue beat(4)3
Avg Revenue beat(4)2.52%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)6.62%
Revenue beat(8)7
Avg Revenue beat(8)2.2%
Revenue beat(12)11
Avg Revenue beat(12)4.77%
Revenue beat(16)14
Avg Revenue beat(16)4.1%
PT rev (1m)7.69%
PT rev (3m)-1.41%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)7.8%
EPS NY rev (1m)0.11%
EPS NY rev (3m)4.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 22.51 | ||
| P/S | 2.05 | ||
| P/FCF | 39.9 | ||
| P/OCF | 36.75 | ||
| P/B | 5.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.43 |
EPS(TTM)1.38
EY3.9%
EPS(NY)1.57
Fwd EY4.44%
FCF(TTM)0.89
FCFY2.51%
OCF(TTM)0.96
OCFY2.72%
SpS17.29
BVpS5.97
TBVpS-1.81
PEG (NY)1.34
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 11.95% | ||
| ROCE | 20.57% | ||
| ROIC | 14.41% | ||
| ROICexc | 15.45% | ||
| ROICexgc | 87.69% | ||
| OM | 12.04% | ||
| PM (TTM) | 4.13% | ||
| GM | 19.85% | ||
| FCFM | 5.13% |
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-5.44%
PM growth 5Y3.04%
GM growth 3Y0.88%
GM growth 5Y3.25%
F-Score7
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 30.19% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 18.6 | ||
| Cash Conversion | 41.26% | ||
| Profit Quality | 124.26% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 4.27 |
F-Score7
WACC9.92%
ROIC/WACC1.45
Cap/Depr(3y)35.94%
Cap/Depr(5y)38.71%
Cap/Sales(3y)0.5%
Cap/Sales(5y)0.47%
Profit Quality(3y)116.94%
Profit Quality(5y)124.37%
High Growth Momentum
Growth
EPS 1Y (TTM)16.98%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%16.2%
EPS Next Y19.08%
EPS Next 2Y11.63%
EPS Next 3Y12.19%
EPS Next 5Y10.08%
Revenue 1Y (TTM)10.76%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%4.85%
Revenue Next Year6.28%
Revenue Next 2Y2.01%
Revenue Next 3Y2.65%
Revenue Next 5Y2.6%
EBIT growth 1Y19.36%
EBIT growth 3Y22.14%
EBIT growth 5Y19.68%
EBIT Next Year25.96%
EBIT Next 3Y12.56%
EBIT Next 5Y9.39%
FCF growth 1Y-8.88%
FCF growth 3Y4.81%
FCF growth 5Y12.11%
OCF growth 1Y-6.63%
OCF growth 3Y5.62%
OCF growth 5Y11.46%