NasdaqGS:TTEK

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 6% below its fair value

Earnings are forecast to grow 12.12% per year

Earnings grew by 15.9% over the past year

Risk Analysis

No risks detected for TTEK from our risk checks.


Snowflake Analysis

Excellent balance sheet with proven 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

-2.9%

TTEK

-0.8%

US Commercial Services

-0.3%

US Market


1 Year Return

59.2%

TTEK

22.8%

US Commercial Services

18.6%

US Market

Return vs Industry: TTEK exceeded the US Commercial Services industry which returned 22.8% over the past year.

Return vs Market: TTEK exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

TTEKIndustryMarket
7 Day-2.9%-0.8%-0.3%
30 Day-0.7%1.1%2.2%
90 Day5.8%2.9%5.6%
1 Year60.5%59.2%27.2%22.8%21.1%18.6%
3 Year104.1%99.1%55.8%45.7%45.6%36.2%
5 Year255.8%239.3%104.6%83.8%71.1%52.2%

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?

6.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTEK ($86.92) is trading below our estimate of fair value ($92.51)

Significantly Below Fair Value: TTEK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TTEK is poor value based on its PE Ratio (30.1x) compared to the Commercial Services industry average (26.4x).

PE vs Market: TTEK is poor value based on its PE Ratio (30.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TTEK is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: TTEK is overvalued based on its PB Ratio (4.8x) compared to the US Commercial Services industry average (2x).


Next Steps

Future Growth

How is Tetra Tech forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTEK's forecast earnings growth (12.1% per year) is above the savings rate (1.7%).

Earnings vs Market: TTEK's earnings (12.1% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: TTEK's revenue (5.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TTEK's revenue (5.6% 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 (18.7%).


Next Steps

Past Performance

How has Tetra Tech performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTEK has high quality earnings.

Growing Profit Margin: TTEK's current net profit margins (6.6%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: TTEK's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: TTEK's earnings growth over the past year (15.9%) is below its 5-year average (19.5% per year).

Earnings vs Industry: TTEK earnings growth over the past year (15.9%) exceeded the Commercial Services industry -3.1%.


Return on Equity

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


Return on Assets


Return on Capital Employed


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 ($770.0M).

Long Term Liabilities: TTEK's short term assets ($1.1B) exceed its long term liabilities ($388.0M).


Debt to Equity History and Analysis

Debt Level: TTEK's debt to equity ratio (29.1%) is considered satisfactory.

Reducing Debt: TTEK's debt to equity ratio has increased from 20.1% to 29.1% over the past 5 years.

Debt Coverage: TTEK's debt is well covered by operating cash flow (72.5%).

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 3.8x debt).


Next Steps

Dividend

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

0.69%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: TTEK's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: TTEK's dividend (0.69%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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

What is the CEO of Tetra Tech's salary, the management and board of directors tenure and is there insider trading?

8.5yrs

Average management tenure


CEO

Dan Batrack (61yo)

14.1yrs

Tenure

US$5,997,319

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 September ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD6.00M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

8.5yrs

Average Tenure

59yo

Average Age

Experienced Management: TTEK's management team is seasoned and experienced (8.5 years average tenure).


Board Age and Tenure

12.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: TTEK's board of directors are seasoned and experienced ( 12.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$88,51727 Nov 19
Mark Rynning
EntityIndividual
Shares1,015
Max PriceUS$87.21
SellUS$125,02022 Nov 19
Roger Argus
EntityIndividual
Role
Senior Key Executive
Senior VP
Shares1,449
Max PriceUS$86.48
SellUS$368,64713 Sep 19
John Lewis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,489
Max PriceUS$82.12
SellUS$58,68117 May 19
Mark Rynning
EntityIndividual
Shares871
Max PriceUS$67.37
SellUS$272,24319 Mar 19
Derek Amidon
EntityIndividual
Role
Senior Key Executive
Senior VP
Shares4,618
Max PriceUS$58.97
SellUS$220,97921 Feb 19
Patrick Haden
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,780
Max PriceUS$58.46

Ownership Breakdown

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


Management Team

  • Richard Lemmon (60yo)

    Senior Vice President of Corporate Administration

    • Tenure: 0yrs
    • Compensation: US$1.01m
  • Dan Batrack (61yo)

    Chairman of the Board & CEO

    • Tenure: 14.1yrs
    • Compensation: US$6.00m
  • Craig Christensen (66yo)

    Senior VP & Chief Information Officer

    • Tenure: 13yrs
  • Brian Carter (52yo)

    Senior VP

    • Tenure: 8.5yrs
  • Steve Burdick (54yo)

    CFO, Executive VP & Treasurer

    • Tenure: 8.7yrs
    • Compensation: US$1.66m
  • William Brownlie (65yo)

    Senior VP

    • Tenure: 10.3yrs
    • Compensation: US$148.99k
  • Leslie Shoemaker (62yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$1.57m
  • Derek Amidon (52yo)

    Senior VP

    • Tenure: 2.1yrs
  • Roger Argus (58yo)

    Senior VP

    • Tenure: 2.1yrs
    • Compensation: US$1.26m
  • Preston Hopson (43yo)

    Senior VP

    • Tenure: 1.9yrs

Board Members

  • Li-San Hwang (84yo)

    Chairman Emeritus

    • Tenure: 13.8yrs
    • Compensation: US$703.32k
  • Albert Smith (69yo)

    Presiding Director

    • Tenure: 3.9yrs
    • Compensation: US$328.04k
  • Ken Thompson (67yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$314.54k
  • Hugh Grant (82yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$327.04k
  • Patrick Haden (66yo)

    Independent Director

    • Tenure: 27yrs
    • Compensation: US$304.04k
  • Chris Lewis (63yo)

    Independent Director

    • Tenure: 31.8yrs
    • Compensation: US$308.54k
  • Dan Batrack (61yo)

    Chairman of the Board & CEO

    • Tenure: 14.1yrs
    • Compensation: US$6.00m
  • Joanne Maguire (65yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$308.04k
  • Kim Ritrievi (60yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$302.54k
  • Kirsten Volpi (54yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$308.54k

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$4.700b
  • Shares outstanding: 54.59m
  • 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 offe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:45
End of Day Share Price2019/12/06 00:00
Earnings2019/09/29
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.