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TETRA TECH INC (TTEK)
US88162G1031 - Common Stock
We assign a fundamental rating of 6 out of 10 to TTEK. TTEK was compared to 84 industry peers in the Commercial Services & Supplies industry. While TTEK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TTEK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TTEK was profitable.
In the past year TTEK had a positive cash flow from operations.
TTEK had positive earnings in each of the past 5 years.
Each year in the past 5 years TTEK had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TTEK (5.86%) is better than 80.72% of its industry peers.
TTEK's Return On Equity of 15.06% is amongst the best of the industry. TTEK outperforms 81.93% of its industry peers.
With an excellent Return On Invested Capital value of 10.89%, TTEK belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TTEK is above the industry average of 10.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 15.06% | ||
| ROIC | 10.89% |
ROA(3y)8.74%
ROA(5y)8.18%
ROE(3y)20.19%
ROE(5y)18.68%
ROIC(3y)12.37%
ROIC(5y)11.91%
1.3 Margins
With a decent Profit Margin value of 5.75%, TTEK is doing good in the industry, outperforming 77.11% of the companies in the same industry.
TTEK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.49%, TTEK is in the better half of 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.
Looking at the Gross Margin, with a value of 18.91%, TTEK is doing worse than 66.27% of the companies in the same industry.
In the last couple of years the Gross Margin of TTEK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.49% | ||
| PM (TTM) | 5.75% | ||
| GM | 18.91% |
OM growth 3Y-0.22%
OM growth 5Y4.7%
PM growth 3Y-0.52%
PM growth 5Y3.22%
GM growth 3Y0.55%
GM growth 5Y2.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTEK is creating some value.
The number of shares outstanding for TTEK has been increased compared to 1 year ago.
Compared to 5 years ago, TTEK has less shares outstanding
The debt/assets ratio for TTEK is higher compared to a year ago.
2.2 Solvency
TTEK has an Altman-Z score of 4.77. This indicates that TTEK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.77, TTEK belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
TTEK has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as TTEK would need 2.89 years to pay back of all of its debts.
TTEK has a Debt to FCF ratio of 2.89. This is in the better half of the industry: TTEK outperforms 72.29% of its industry peers.
TTEK has a Debt/Equity ratio of 0.61. This is a neutral value indicating TTEK is somewhat dependend on debt financing.
TTEK's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. TTEK outperforms 50.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 4.77 |
ROIC/WACC1.2
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.25 indicates that TTEK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.25, TTEK is doing worse than 65.06% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that TTEK should not have too much problems paying its short term obligations.
The Quick ratio of TTEK (1.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
TTEK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.03%, which is quite impressive.
Measured over the past years, TTEK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.06% on average per year.
The Revenue has grown by 39.30% in the past year. This is a very strong growth!
TTEK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.25% yearly.
EPS 1Y (TTM)21.03%
EPS 3Y19.62%
EPS 5Y16.06%
EPS growth Q2Q4.48%
Revenue 1Y (TTM)39.3%
Revenue growth 3Y16.89%
Revenue growth 5Y11.25%
Revenue growth Q2Q37.82%
3.2 Future
TTEK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
Based on estimates for the next years, TTEK will show a small growth in Revenue. The Revenue will grow by 7.75% on average per year.
EPS Next Y10.67%
EPS Next 2Y12.03%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue Next Year15.42%
Revenue Next 2Y11.68%
Revenue Next 3Y7.75%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 36.84, the valuation of TTEK can be described as expensive.
TTEK's Price/Earnings is on the same level as the industry average.
TTEK is valuated rather expensively when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.66, which means the current valuation is very expensive for TTEK.
The rest of the industry has a similar Price/Forward Earnings ratio as TTEK.
When comparing the Price/Forward Earnings ratio of TTEK to the average of the S&P500 Index (20.88), we can say TTEK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.84 | ||
| Fwd PE | 29.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTEK is valued a bit more expensive than 63.86% of the companies in the same industry.
TTEK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.95 | ||
| EV/EBITDA | 23.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TTEK does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TTEK may justify a higher PE ratio.
PEG (NY)3.45
PEG (5Y)2.29
EPS Next 2Y12.03%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
TTEK has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 2.39, TTEK pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.54, TTEK pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of TTEK grows each year by 17.36%, which is quite nice.
TTEK has paid a dividend for at least 10 years, which is a reliable track record.
TTEK has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)17.36%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
23.22% of the earnings are spent on dividend by TTEK. This is a low number and sustainable payout ratio.
TTEK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.22%
EPS Next 2Y12.03%
EPS Next 3Y11.89%
TETRA TECH INC
NASDAQ:TTEK (5/3/2024, 7:23:10 PM)
After market: 207.75 0 (0%)207.75
+3.49 (+1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 36.84 | ||
| Fwd PE | 29.66 | ||
| 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)3.45
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.86% | ||
| ROE | 15.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.49% | ||
| PM (TTM) | 5.75% | ||
| GM | 18.91% | ||
| 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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| 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)21.03%
EPS 3Y19.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)39.3%
Revenue growth 3Y16.89%
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