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. While TTEK has a great profitability rating, there are some minor concerns on its financial health. TTEK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TTEK was profitable.
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
With a decent Return On Assets value of 4.50%, TTEK is doing good in the industry, outperforming 63.86% of the companies in the same industry.
With a decent Return On Equity value of 11.95%, TTEK is doing good in the industry, outperforming 68.67% of the companies in the same industry.
TTEK's Return On Invested Capital of 14.41% is amongst the best of the industry. TTEK outperforms 85.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TTEK 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's Profit Margin of 4.13% is fine compared to the rest of the industry. TTEK outperforms 60.24% of its industry peers.
TTEK's Profit Margin has improved in the last couple of years.
TTEK's Operating Margin of 12.04% is fine compared to the rest of the industry. TTEK outperforms 75.90% of its industry peers.
In the last couple of years the Operating Margin of TTEK has grown nicely.
TTEK has a worse Gross Margin (19.85%) 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 | 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
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.
TTEK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TTEK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.36 indicates that TTEK is not in any danger for bankruptcy at the moment.
TTEK has a Altman-Z score of 4.36. This is in the better half of the industry: TTEK outperforms 74.70% 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 Debt to FCF ratio of 4.34. This is in the better half of the industry: TTEK outperforms 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.
With a Debt to Equity ratio value of 0.49, TTEK perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | 4.36 |
ROIC/WACC1.68
WACC8.59%
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.
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: 65.06% 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
The Earnings Per Share has grown by an nice 16.98% over the past year.
The Earnings Per Share has been growing by 14.76% on average over the past years. This is quite good.
Looking at the last year, TTEK shows a quite strong growth in Revenue. The Revenue has grown by 10.76% in the last year.
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 10.08% 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 Y19.08%
EPS Next 2Y11.02%
EPS Next 3Y12.19%
EPS Next 5Y10.08%
Revenue Next Year6.12%
Revenue Next 2Y1.48%
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.
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
TTEK is valuated quite expensively with a Price/Earnings ratio of 26.99.
TTEK's Price/Earnings ratio is in line with the industry average.
TTEK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.52.
With a Price/Forward Earnings ratio of 23.94, TTEK is valued on the expensive side.
TTEK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TTEK is cheaper than 61.45% of the companies in the same industry.
TTEK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 23.94 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.98 | ||
| EV/EBITDA | 17.03 |
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)1.41
PEG (5Y)1.83
EPS Next 2Y11.02%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
TTEK has a yearly dividend return of 0.71%, which is pretty low.
TTEK's Dividend Yield is a higher than the industry average which is at 2.45.
With a Dividend Yield of 0.71, TTEK pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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 2Y11.02%
EPS Next 3Y12.19%
37.24
+0.65 (+1.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners99.12%
Inst Owner Change0%
Ins Owners0.39%
Ins Owner Change-0.44%
Market Cap9.81B
Analysts80
Price Target42.84 (15.04%)
Short Float %3.93%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)2.94%
PT rev (3m)1.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.74%
EPS NY rev (1m)0.11%
EPS NY rev (3m)4.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.81%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 23.94 | ||
| P/S | 2.15 | ||
| P/FCF | 41.98 | ||
| P/OCF | 38.67 | ||
| P/B | 6.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.03 |
EPS(TTM)1.38
EY3.71%
EPS(NY)1.56
Fwd EY4.18%
FCF(TTM)0.89
FCFY2.38%
OCF(TTM)0.96
OCFY2.59%
SpS17.29
BVpS5.97
TBVpS-1.81
PEG (NY)1.41
PEG (5Y)1.83
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 | 4.36 |
F-Score7
WACC8.59%
ROIC/WACC1.68
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 2Y11.02%
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 Year6.12%
Revenue Next 2Y1.48%
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%