TETRA TECH INC (TTEK) Stock Fundamental Analysis
NASDAQ:TTEK - Nasdaq - US88162G1031 - Common Stock - Currency: USD
Overall TTEK gets a fundamental rating of 5 out of 10. We evaluated TTEK against 83 industry peers in the Commercial Services & Supplies industry. TTEK scores excellent on profitability, but 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
TTEK had positive earnings in the past year.
TTEK had a positive operating cash flow in the past year.
In the past 5 years TTEK has always been profitable.
TTEK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.20%, TTEK is doing good in the industry, outperforming 71.08% of the companies in the same industry.
With a decent Return On Equity value of 15.32%, TTEK is doing good in the industry, outperforming 73.49% of the companies in the same industry.
TTEK has a Return On Invested Capital of 12.86%. This is amongst the best in the industry. TTEK outperforms 83.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TTEK is in line with the industry average of 10.57%.
The last Return On Invested Capital (12.86%) for TTEK is above the 3 year average (12.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.2% | ||
| ROE | 15.32% | ||
| ROIC | 12.86% |
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
With a decent Profit Margin value of 5.75%, TTEK is doing good in the industry, outperforming 69.88% 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 11.86%, TTEK is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
TTEK's Operating Margin has improved in the last couple of years.
TTEK has a worse Gross Margin (19.92%) than 72.29% of its industry peers.
In the last couple of years the Gross Margin of TTEK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.86% | ||
| PM (TTM) | 5.75% | ||
| GM | 19.92% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTEK is creating some value.
TTEK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TTEK has more shares outstanding
TTEK has a better debt/assets ratio than last year.
2.2 Solvency
TTEK has an Altman-Z score of 4.48. This indicates that TTEK is financially healthy and has little risk of bankruptcy at the moment.
TTEK's Altman-Z score of 4.48 is fine compared to the rest of the industry. TTEK outperforms 79.52% of its industry peers.
TTEK has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as TTEK would need 2.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.58, TTEK is doing good in the industry, outperforming 77.11% of the companies in the same industry.
TTEK has a Debt/Equity ratio of 0.53. This is a neutral value indicating TTEK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, TTEK is in line with its industry, outperforming 45.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.51
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.29 indicates that TTEK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.29, TTEK is doing worse than 67.47% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that TTEK should not have too much problems paying its short term obligations.
TTEK has a Quick ratio (1.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.98% over the past year.
TTEK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.76% yearly.
The Revenue has grown by 15.22% in the past year. This is quite good.
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)15.22%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%4.85%
3.2 Future
The Earnings Per Share is expected to grow by 10.73% 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 3.52% on average per year.
EPS Next Y14.1%
EPS Next 2Y11.63%
EPS Next 3Y13.26%
EPS Next 5Y10.73%
Revenue Next Year4.05%
Revenue Next 2Y3.57%
Revenue Next 3Y4.94%
Revenue Next 5Y3.52%
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.
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
The Price/Earnings ratio is 25.68, which means the current valuation is very expensive for TTEK.
The rest of the industry has a similar Price/Earnings ratio as TTEK.
The average S&P500 Price/Earnings ratio is at 24.21. TTEK is around the same levels.
With a Price/Forward Earnings ratio of 22.54, TTEK is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TTEK is valued a bit cheaper than 62.65% of the companies in the same industry.
TTEK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.68 | ||
| Fwd PE | 22.54 |
4.2 Price Multiples
TTEK's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTEK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.58 | ||
| EV/EBITDA | 16.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TTEK may justify a higher PE ratio.
A more expensive valuation may be justified as TTEK's earnings are expected to grow with 13.26% in the coming years.
PEG (NY)1.82
PEG (5Y)1.74
EPS Next 2Y11.63%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, TTEK is not a good candidate for dividend investing.
TTEK's Dividend Yield is a higher than the industry average which is at 2.50.
Compared to an average S&P500 Dividend Yield of 2.42, TTEK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-16.43%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
TTEK pays out 23.35% of its income as dividend. This is a sustainable payout ratio.
DP23.35%
EPS Next 2Y11.63%
EPS Next 3Y13.26%
35.44
+0.56 (+1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.63%
Inst Owner Change0.41%
Ins Owners0.38%
Ins Owner Change7.88%
Market Cap9.50B
Analysts80
Price Target39.78 (12.25%)
Short Float %3.31%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.22
Dividend Growth(5Y)-16.43%
DP23.35%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.28%
Min EPS beat(2)0.69%
Max EPS beat(2)3.88%
EPS beat(4)4
Avg EPS beat(4)3.23%
Min EPS beat(4)0.42%
Max EPS beat(4)7.92%
EPS beat(8)8
Avg EPS beat(8)6.84%
EPS beat(12)12
Avg EPS beat(12)6.53%
EPS beat(16)16
Avg EPS beat(16)6.83%
Revenue beat(2)1
Avg Revenue beat(2)2.73%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)6.62%
Revenue beat(4)3
Avg Revenue beat(4)1.72%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)6.62%
Revenue beat(8)7
Avg Revenue beat(8)6.4%
Revenue beat(12)11
Avg Revenue beat(12)4.86%
Revenue beat(16)14
Avg Revenue beat(16)3.93%
PT rev (1m)-8.45%
PT rev (3m)-20.41%
EPS NQ rev (1m)-0.65%
EPS NQ rev (3m)-5.94%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-2.28%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-6.26%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.68 | ||
| Fwd PE | 22.54 | ||
| P/S | 2.11 | ||
| P/FCF | 27.58 | ||
| P/OCF | 26.2 | ||
| P/B | 5.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.52 |
EPS(TTM)1.38
EY3.89%
EPS(NY)1.57
Fwd EY4.44%
FCF(TTM)1.28
FCFY3.63%
OCF(TTM)1.35
OCFY3.82%
SpS16.8
BVpS6.31
TBVpS-1.56
PEG (NY)1.82
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.2% | ||
| ROE | 15.32% | ||
| ROCE | 18.35% | ||
| ROIC | 12.86% | ||
| ROICexc | 14.06% | ||
| ROICexgc | 67.71% | ||
| OM | 11.86% | ||
| PM (TTM) | 5.75% | ||
| GM | 19.92% | ||
| FCFM | 7.65% |
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-Score9
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 25.78% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 17.03 | ||
| Cash Conversion | 59.96% | ||
| Profit Quality | 132.9% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 4.48 |
F-Score9
WACC8.52%
ROIC/WACC1.51
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 Y14.1%
EPS Next 2Y11.63%
EPS Next 3Y13.26%
EPS Next 5Y10.73%
Revenue 1Y (TTM)15.22%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%4.85%
Revenue Next Year4.05%
Revenue Next 2Y3.57%
Revenue Next 3Y4.94%
Revenue Next 5Y3.52%
EBIT growth 1Y26.34%
EBIT growth 3Y22.14%
EBIT growth 5Y19.68%
EBIT Next Year23.54%
EBIT Next 3Y11.52%
EBIT Next 5Y10.33%
FCF growth 1Y30.02%
FCF growth 3Y4.81%
FCF growth 5Y12.11%
OCF growth 1Y29.94%
OCF growth 3Y5.62%
OCF growth 5Y11.46%