TETRA TECH INC (TTEK) Stock Fundamental Analysis
NASDAQ:TTEK - US88162G1031 - Common Stock
36.34 USD
-0.48 (-1.3%)
36.34 USD
0 (0%)
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. TTEK has an excellent profitability rating, but there are some minor concerns on its financial health. TTEK is not valued too expensively and it also shows 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.
TTEK had positive earnings in each of the past 5 years.
In the past 5 years TTEK always reported a positive cash flow from operatings.
1.2 Ratios
TTEK's Return On Assets of 4.96% is fine compared to the rest of the industry. TTEK outperforms 69.05% of its industry peers.
With a decent Return On Equity value of 12.41%, TTEK is doing good in the industry, outperforming 71.43% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.77%, TTEK belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TTEK is in line with the industry average of 10.78%.
The 3 year average ROIC (12.29%) for TTEK is below the current ROIC(13.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.41% | ||
| ROIC | 13.77% |
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's Profit Margin of 4.70% is fine compared to the rest of the industry. TTEK outperforms 63.10% of its industry peers.
TTEK's Profit Margin has improved in the last couple of years.
TTEK's Operating Margin of 12.72% is fine compared to the rest of the industry. TTEK outperforms 79.76% of its industry peers.
In the last couple of years the Operating Margin of TTEK has grown nicely.
TTEK has a worse Gross Margin (20.28%) than 72.62% of its industry peers.
TTEK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.72% | ||
| PM (TTM) | 4.7% | ||
| GM | 20.28% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TTEK is still creating some value.
TTEK has more shares outstanding than it did 1 year ago.
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
TTEK has an Altman-Z score of 4.34. This indicates that TTEK is financially healthy and has little risk of bankruptcy at the moment.
TTEK's Altman-Z score of 4.34 is fine compared to the rest of the industry. TTEK outperforms 71.43% of its industry peers.
TTEK has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
The Debt to FCF ratio of TTEK (1.95) is better than 82.14% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that TTEK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, TTEK is in line with its industry, outperforming 55.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 4.34 |
ROIC/WACC1.64
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.18 indicates that TTEK should not have too much problems paying its short term obligations.
TTEK's Current ratio of 1.18 is on the low side compared to the rest of the industry. TTEK is outperformed by 69.05% of its industry peers.
TTEK has a Quick Ratio of 1.18. This is a normal value and indicates that TTEK is financially healthy and should not expect problems in meeting its short term obligations.
TTEK's Quick ratio of 1.18 is in line compared to the rest of the industry. TTEK outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.36% 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.
Looking at the last year, TTEK shows a quite strong growth in Revenue. The Revenue has grown by 8.59% in the last year.
Measured over the past years, TTEK shows a quite strong growth in Revenue. The Revenue has been growing by 12.58% on average per year.
EPS 1Y (TTM)20.36%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%35.22%
Revenue 1Y (TTM)8.59%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%3.91%
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 10.08% yearly.
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 Y22.52%
EPS Next 2Y11.27%
EPS Next 3Y11.49%
EPS Next 5Y10.08%
Revenue Next Year4.82%
Revenue Next 2Y0.37%
Revenue Next 3Y4.26%
Revenue Next 5Y2.6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 24.39, which indicates a rather expensive current valuation of TTEK.
TTEK's Price/Earnings ratio is a bit cheaper when compared to the industry. TTEK is cheaper than 61.90% of the companies in the same industry.
TTEK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
TTEK is valuated rather expensively with a Price/Forward Earnings ratio of 23.26.
TTEK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TTEK is cheaper than 64.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TTEK to the average of the S&P500 Index (22.63), we can say TTEK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 23.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTEK is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TTEK is valued a bit cheaper than the industry average as 70.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.59 | ||
| EV/EBITDA | 15.75 |
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.
PEG (NY)1.08
PEG (5Y)1.65
EPS Next 2Y11.27%
EPS Next 3Y11.49%
5. Dividend
5.1 Amount
TTEK has a yearly dividend return of 0.73%, which is pretty low.
Compared to an average industry Dividend Yield of 2.36, TTEK pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.73, TTEK pays less dividend than the S&P500 average, which is at 2.34.
| 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 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
29.39% of the earnings are spent on dividend by TTEK. This is a low number and sustainable payout ratio.
DP29.39%
EPS Next 2Y11.27%
EPS Next 3Y11.49%
36.34
-0.48 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.04%
Inst Owner Change1.58%
Ins Owners0.39%
Ins Owner Change-0.1%
Market Cap9.55B
Analysts80
Price Target44.47 (22.37%)
Short Float %3.92%
Short Ratio5.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.22
Dividend Growth(5Y)-16.43%
DP29.39%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.33%
Min EPS beat(2)5.73%
Max EPS beat(2)10.94%
EPS beat(4)4
Avg EPS beat(4)5.31%
Min EPS beat(4)0.69%
Max EPS beat(4)10.94%
EPS beat(8)8
Avg EPS beat(8)6.69%
EPS beat(12)12
Avg EPS beat(12)7.27%
EPS beat(16)16
Avg EPS beat(16)6.98%
Revenue beat(2)1
Avg Revenue beat(2)1.23%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)3.83%
Revenue beat(4)2
Avg Revenue beat(4)1.98%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)6.62%
Revenue beat(8)6
Avg Revenue beat(8)1.92%
Revenue beat(12)10
Avg Revenue beat(12)4.63%
Revenue beat(16)14
Avg Revenue beat(16)4.02%
PT rev (1m)3.81%
PT rev (3m)11.79%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)2.88%
EPS NY rev (3m)3%
Revenue NQ rev (1m)-5.06%
Revenue NQ rev (3m)-7.24%
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 23.26 | ||
| P/S | 2.08 | ||
| P/FCF | 21.59 | ||
| P/OCF | 20.65 | ||
| P/B | 5.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.75 |
EPS(TTM)1.49
EY4.1%
EPS(NY)1.56
Fwd EY4.3%
FCF(TTM)1.68
FCFY4.63%
OCF(TTM)1.76
OCFY4.84%
SpS17.5
BVpS6.63
TBVpS-1.91
PEG (NY)1.08
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 12.41% | ||
| ROCE | 19.65% | ||
| ROIC | 13.77% | ||
| ROICexc | 14.99% | ||
| ROICexgc | 83.34% | ||
| OM | 12.72% | ||
| PM (TTM) | 4.7% | ||
| GM | 20.28% | ||
| FCFM | 9.62% |
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 Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 33.35% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 17.3 | ||
| Cash Conversion | 71.63% | ||
| Profit Quality | 204.61% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.34 |
F-Score7
WACC8.42%
ROIC/WACC1.64
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)20.36%
EPS 3Y18.52%
EPS 5Y14.76%
EPS Q2Q%35.22%
EPS Next Y22.52%
EPS Next 2Y11.27%
EPS Next 3Y11.49%
EPS Next 5Y10.08%
Revenue 1Y (TTM)8.59%
Revenue growth 3Y19.19%
Revenue growth 5Y12.58%
Sales Q2Q%3.91%
Revenue Next Year4.82%
Revenue Next 2Y0.37%
Revenue Next 3Y4.26%
Revenue Next 5Y2.6%
EBIT growth 1Y19.75%
EBIT growth 3Y22.14%
EBIT growth 5Y19.68%
EBIT Next Year28.12%
EBIT Next 3Y11.86%
EBIT Next 5Y9.39%
FCF growth 1Y54.19%
FCF growth 3Y4.81%
FCF growth 5Y12.11%
OCF growth 1Y50.97%
OCF growth 3Y5.62%
OCF growth 5Y11.46%