NasdaqGS:TTEK

Stock Analysis Report

Executive Summary

Tetra Tech, Inc. provides consulting and engineering services worldwide.

Rewards

Earnings are forecast to grow 10.03% per year

Earnings grew by 23.4% over the past year

Risk Analysis

No risks detected for TTEK from our risk checks.


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Tetra Tech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TTEK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

TTEK

-5.0%

US Commercial Services

-7.6%

US Market


1 Year Return

56.5%

TTEK

13.7%

US Commercial Services

10.2%

US Market

Return vs Industry: TTEK exceeded the US Commercial Services industry which returned 13.7% over the past year.

Return vs Market: TTEK exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

TTEKIndustryMarket
7 Day-2.0%-5.0%-7.6%
30 Day4.9%-2.4%-4.5%
90 Day6.4%1.6%-0.6%
1 Year57.7%56.5%17.6%13.7%12.5%10.2%
3 Year135.6%129.9%54.0%43.8%37.1%28.3%
5 Year281.1%263.9%91.5%71.1%60.8%43.2%

Price Volatility Vs. Market

How volatile is Tetra Tech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tetra Tech undervalued compared to its fair value and its price relative to the market?

31.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TTEK ($93.93) is trading above our estimate of fair value ($67.27)

Significantly Below Fair Value: TTEK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TTEK is poor value based on its PE Ratio (31.4x) compared to the Commercial Services industry average (27.1x).

PE vs Market: TTEK is poor value based on its PE Ratio (31.4x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: TTEK is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: TTEK is overvalued based on its PB Ratio (5x) compared to the US Commercial Services industry average (1.9x).


Next Steps

Future Growth

How is Tetra Tech forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTEK's forecast earnings growth (10% per year) is above the savings rate (1.7%).

Earnings vs Market: TTEK's earnings (10% per year) are forecast to grow slower than the US market (13.2% per year).

High Growth Earnings: TTEK's earnings are forecast to grow, but not significantly.

Revenue vs Market: TTEK's revenue (4.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TTEK's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TTEK's Return on Equity is forecast to be low in 3 years time (18.5%).


Next Steps

Past Performance

How has Tetra Tech performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTEK has high quality earnings.

Growing Profit Margin: TTEK's current net profit margins (6.7%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: TTEK's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: TTEK's earnings growth over the past year (23.4%) exceeds its 5-year average (22% per year).

Earnings vs Industry: TTEK earnings growth over the past year (23.4%) exceeded the Commercial Services industry -4.6%.


Return on Equity

High ROE: TTEK's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is Tetra Tech's financial position?


Financial Position Analysis

Short Term Liabilities: TTEK's short term assets ($1.1B) exceed its short term liabilities ($712.5M).

Long Term Liabilities: TTEK's short term assets ($1.1B) exceed its long term liabilities ($613.3M).


Debt to Equity History and Analysis

Debt Level: TTEK's debt to equity ratio (33.5%) is considered satisfactory.

Reducing Debt: TTEK's debt to equity ratio has increased from 20.3% to 33.5% over the past 5 years.

Debt Coverage: TTEK's debt is well covered by operating cash flow (59.8%).

Interest Coverage: TTEK's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet

Inventory Level: TTEK has a low level of unsold assets or inventory.

Debt Coverage by Assets: TTEK's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

What is Tetra Tech's current dividend yield, its reliability and sustainability?

0.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TTEK's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: TTEK's dividend (0.64%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: TTEK is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TTEK is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TTEK is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TTEK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.7yrs

Average management tenure


CEO

Dan Batrack (61yo)

14.3yrs

Tenure

US$6,499,036

Compensation

Mr. Dan L. Batrack has been Chairman and Chief Executive Officer of Tetra Tech, Inc. since January 30, 2008 and November 17, 2005 respectively and served as its President since October 2008 until October 2 ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD6.50M) is about average for companies of similar size in the US market ($USD6.51M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dan Batrack
Chairman & CEO14.3yrsUS$6.50m0.51% $26.1m
Leslie Shoemaker
President0.4yrsUS$1.83m0.12% $6.3m
Steven Burdick
CFO, Executive VP & Treasurer8.8yrsUS$1.89m0.11% $5.4m
Derek Amidon
Senior VP2.3yrsUS$1.21m0.0018% $93.5k
Roger Argus
Senior VP2.3yrsUS$1.36m0.0042% $217.8k
Brian Carter
Senior VP8.7yrsno data0.010% $516.7k
Craig Christensen
Senior VP & Chief Information Officer13.2yrsno data0.069% $3.5m
Richard Lemmon
Senior Vice President of Corporate Administration0yrsUS$1.01m0.076% $3.9m
Preston Hopson
Senior VP2.1yrsno data0.0024% $125.3k
William Brownlie
Senior VP10.4yrsUS$148.99k0.15% $7.9m

8.7yrs

Average Tenure

59yo

Average Age

Experienced Management: TTEK's management team is seasoned and experienced (8.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dan Batrack
Chairman & CEO14.3yrsUS$6.50m0.51% $26.1m
Li-San Hwang
Chairman Emeritus13.9yrsUS$703.32kno data
Albert Smith
Independent Director14.8yrsUS$249.29k0.086% $4.4m
James Thompson
Presiding Director0yrsUS$282.79k0.043% $2.2m
Hugh Grant
Independent Director17.1yrsUS$256.29k0.044% $2.3m
Patrick Haden
Independent Director27.2yrsUS$254.29k0.016% $824.9k
John Lewis
Independent Director32yrsUS$259.79k0.12% $6.3m
Joanne Maguire
Independent Director3.3yrsUS$259.29k0.010% $529.1k
Kirsten Volpi
Independent Director6.6yrsUS$259.79k0.026% $1.3m
Gary Birkenbeuel
Independent Director1.6yrsUS$271.29k0.0020% $101.2k

13.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: TTEK's board of directors are seasoned and experienced ( 13.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TTEK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tetra Tech, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tetra Tech, Inc.
  • Ticker: TTEK
  • Exchange: NasdaqGS
  • Founded: 1966
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$5.136b
  • Shares outstanding: 54.68m
  • Website: https://www.tetratech.com

Number of Employees


Location

  • Tetra Tech, Inc.
  • 3475 East Foothill Boulevard
  • Pasadena
  • California
  • 91107
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTEKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1991
TT6DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1991
TTEK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1991

Biography

Tetra Tech, Inc. provides consulting and engineering services worldwide. It operates through Government Services Group (GSG) and Commercial/International Services Group (CIG) segments. The GSG segment offers early data collection and monitoring, data analysis and information technology, science and engineering applied research, engineering design, construction management, and operations and maintenance services; and climate change and energy management consulting, as well as greenhouse gas inventory assessment, certification, reduction, and management services. This segment serves federal, state, and local governments, and development agencies in water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management, and a range of civil infrastructure master planning and engineering design markets. The CIG segment provides early data collection and monitoring, data analysis and information management, feasibility studies and assessments, science and engineering applied research, engineering design, construction management, and operations and maintenance services. This segment serves natural resources, energy, and utilities markets, as well as civil infrastructure master planning and engineering design markets. Tetra Tech, Inc. was founded in 1966 and is headquartered in Pasadena, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:13
End of Day Share Price2020/02/26 00:00
Earnings2019/12/29
Annual Earnings2019/09/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.