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 scores excellent on profitability, 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.
In the past year TTEK had a positive cash flow from operations.
Each year in the past 5 years TTEK has 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 4.50%, TTEK is doing good in the industry, outperforming 62.65% of the companies in the same industry.
TTEK has a Return On Equity of 11.95%. This is in the better half of the industry: TTEK outperforms 68.67% of its industry peers.
With an excellent Return On Invested Capital value of 14.41%, TTEK belongs to the best of the industry, outperforming 85.54% 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 11.34%.
The 3 year average ROIC (12.29%) for TTEK is below the current ROIC(14.41%), indicating increased profibility in the last year.
| 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's Profit Margin of 4.13% is in line compared to the rest of the industry. TTEK outperforms 59.04% of its industry peers.
TTEK's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.04%, TTEK is doing good in the industry, outperforming 77.11% of the companies in the same industry.
TTEK's Operating Margin has improved in the last couple of years.
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.
The number of shares outstanding for TTEK has been increased compared to 1 year ago.
The number of shares outstanding for TTEK has been increased compared to 5 years ago.
The debt/assets ratio for TTEK has been reduced compared to a year ago.
2.2 Solvency
TTEK has an Altman-Z score of 4.26. This indicates that TTEK is financially healthy and has little risk of bankruptcy at the moment.
TTEK's Altman-Z score of 4.26 is fine compared to the rest of the industry. TTEK outperforms 77.11% 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.
Looking at the Debt to Equity ratio, with a value of 0.49, TTEK is in line with its industry, outperforming 48.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.69
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.10 indicates that TTEK should not have too much problems paying its short term obligations.
TTEK has a worse Current ratio (1.10) than 72.29% of its industry peers.
A Quick Ratio of 1.10 indicates that TTEK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.10, TTEK is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
TTEK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.98%, which is quite good.
TTEK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.76% yearly.
TTEK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.76%.
TTEK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.58% yearly.
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
TTEK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.73% yearly.
The Revenue is expected to grow by 3.52% on average over the next years.
EPS Next Y18.95%
EPS Next 2Y11.63%
EPS Next 3Y12.84%
EPS Next 5Y10.73%
Revenue Next Year6.28%
Revenue Next 2Y2.01%
Revenue Next 3Y2.65%
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
With a Price/Earnings ratio of 25.32, TTEK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TTEK is on the same level as its industry peers.
TTEK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.22, TTEK is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTEK indicates a somewhat cheap valuation: TTEK is cheaper than 61.45% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TTEK to the average of the S&P500 Index (22.15), we can say TTEK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
TTEK's Enterprise Value to EBITDA ratio is in line with the industry average.
TTEK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.39 | ||
| EV/EBITDA | 16.33 |
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.
A more expensive valuation may be justified as TTEK's earnings are expected to grow with 12.84% in the coming years.
PEG (NY)1.34
PEG (5Y)1.72
EPS Next 2Y11.63%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
TTEK has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 2.52, TTEK pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.74, TTEK pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of TTEK decreases each year by -16.43%.
TTEK has paid a dividend for at least 10 years, which is 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
32.93% of the earnings are spent on dividend by TTEK. This is a low number and sustainable payout ratio.
DP32.93%
EPS Next 2Y11.63%
EPS Next 3Y12.84%
34.94
-0.16 (-0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.63%
Inst Owner Change3%
Ins Owners0.38%
Ins Owner Change-0.44%
Market Cap9.21B
Analysts80
Price Target39.78 (13.85%)
Short Float %3.34%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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)0%
PT rev (3m)-8.45%
EPS NQ rev (1m)7.3%
EPS NQ rev (3m)8.37%
EPS NY rev (1m)4.25%
EPS NY rev (3m)4.56%
Revenue NQ rev (1m)2.81%
Revenue NQ rev (3m)2.1%
Revenue NY rev (1m)2.14%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.22 | ||
| P/S | 2.02 | ||
| P/FCF | 39.39 | ||
| P/OCF | 36.28 | ||
| P/B | 5.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.33 |
EPS(TTM)1.38
EY3.95%
EPS(NY)1.57
Fwd EY4.5%
FCF(TTM)0.89
FCFY2.54%
OCF(TTM)0.96
OCFY2.76%
SpS17.29
BVpS5.97
TBVpS-1.81
PEG (NY)1.34
PEG (5Y)1.72
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 | 4.26 |
F-Score7
WACC8.55%
ROIC/WACC1.69
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 Y18.95%
EPS Next 2Y11.63%
EPS Next 3Y12.84%
EPS Next 5Y10.73%
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 5Y3.52%
EBIT growth 1Y19.36%
EBIT growth 3Y22.14%
EBIT growth 5Y19.68%
EBIT Next Year25.96%
EBIT Next 3Y12.56%
EBIT Next 5Y10.33%
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%