NasdaqGS:TTEC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

TTEC Holdings, Inc., a customer experience technology and services company, focuses on the design, implementation, and delivery of transformative customer experience for various brands. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has TTEC Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.9%

TTEC

-2.7%

US IT

-1.3%

US Market


1 Year Return

24.5%

TTEC

31.6%

US IT

18.5%

US Market

Return vs Industry: TTEC underperformed the US IT industry which returned 31.6% over the past year.

Return vs Market: TTEC exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

TTECIndustryMarket
7 Day1.9%-2.7%-1.3%
30 Day5.4%4.3%5.3%
90 Day22.5%5.2%7.5%
1 Year26.5%24.5%33.0%31.6%21.3%18.5%
3 Year44.7%37.5%92.4%84.9%42.4%32.9%
5 Year118.3%102.0%150.9%130.8%84.2%63.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TTEC Holdings undervalued compared to its fair value and its price relative to the market?

27.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TTEC ($58.23) is trading above our estimate of fair value ($42.35)

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


Price To Earnings Ratio

PE vs Industry: TTEC is good value based on its PE Ratio (27.3x) compared to the US IT industry average (32.7x).

PE vs Market: TTEC is poor value based on its PE Ratio (27.3x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: TTEC is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: TTEC is overvalued based on its PB Ratio (6.2x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

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

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTEC's forecast earnings growth (11.3% per year) is above the savings rate (2.2%).

Earnings vs Market: TTEC's earnings (11.3% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: TTEC's revenue (3.6% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: TTEC's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TTEC's Return on Equity is forecast to be low in 3 years time (19.2%).


Next Steps

Past Performance

How has TTEC Holdings performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTEC has high quality earnings.

Growing Profit Margin: TTEC's current net profit margins (5.7%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: TTEC's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: TTEC's earnings growth over the past year (75.2%) exceeds its 5-year average (3.2% per year).

Earnings vs Industry: TTEC earnings growth over the past year (75.2%) exceeded the IT industry 8.1%.


Return on Equity

High ROE: Whilst TTEC's Return on Equity (21.69%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is TTEC Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TTEC's short term assets ($958.9M) exceed its short term liabilities ($344.8M).

Long Term Liabilities: TTEC's short term assets ($958.9M) exceed its long term liabilities ($920.2M).


Debt to Equity History and Analysis

Debt Level: TTEC's debt to equity ratio (139.5%) is considered high.

Reducing Debt: TTEC's debt to equity ratio has increased from 25.3% to 139.5% over the past 5 years.

Debt Coverage: TTEC's debt is well covered by operating cash flow (31.7%).

Interest Coverage: TTEC's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet


Next Steps

Dividend

What is TTEC Holdings's current dividend yield, its reliability and sustainability?

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TTEC's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: TTEC's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TTEC has been paying a dividend for less than 10 years.

Growing Dividend: TTEC's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), TTEC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TTEC's dividends in 3 years are forecast to be well covered by earnings (27.7% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Ken Tuchman (60 yo)

19.58yrs

Tenure

US$625,069

Compensation

Mr. Kenneth D. Tuchman, also known as Ken, founded TTEC Holdings, Inc. (formerly known as TeleTech Holdings, Inc.)’s (“TeleTech”) predecessor company in 1982 and has served as the Chairman of the Board sin ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD625.07K) is below average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Ken's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Tuchman
Founder19.58yrsUS$625.07k59.94%
$ 1.6b
Regina Paolillo
Executive VP and Chief Financial & Administrative Officer8.92yrsUS$1.89m0.43%
$ 11.6m
Judith Hand
Executive VP & Chief Revenue Officer2.75yrsUS$671.55k0.38%
$ 10.4m
Martin DeGhetto
Executive Vice President of Engage8.75yrsUS$729.24k0.031%
$ 836.8k
Steven Pollema
Executive VP & COO of Digital5.25yrsUS$960.99k0.054%
$ 1.5m
Jonathan Lerner
President of Digital0.83yrUS$1.02mno data
Chandrasekar Venkataramani
Senior VP & Chief Information Officer1.75yrsno datano data
Paul Miller
Head of Investor Relations7.5yrsno datano data
Margaret McLean
Senior VP7.33yrsUS$1.22m0.079%
$ 2.1m
Nick Cerise
Senior VP & Chief Marketing Officer1.17yrsno datano data
Michael Wellman
Senior VP & Chief People Officer4.33yrsno datano data
R. Erickson
Global Head of Operations for TTEC Engage0.17yrUS$525.15kno data

4.8yrs

Average Tenure

59.5yo

Average Age

Experienced Management: TTEC's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Tuchman
Founder19.58yrsUS$625.07k59.94%
$ 1.6b
Gregory Conley
Independent Director8.5yrsUS$222.00k0.033%
$ 893.7k
Robert Frerichs
Independent Director8.17yrsUS$223.50k0.058%
$ 1.6m
Steven Anenen
Independent Director4.42yrsUS$190.61k0.033%
$ 911.4k
Tracy Bahl
Independent Director7.25yrsUS$210.61k0.025%
$ 684.7k
Marc Holtzman
Independent Director6.25yrsUS$185.00k0.048%
$ 1.3m
Ekta Singh-Bushell
Independent Director3.42yrsUS$204.11k0.023%
$ 617.5k

7.3yrs

Average Tenure

60yo

Average Age

Experienced Board: TTEC's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TTEC 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

TTEC Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TTEC Holdings, Inc.
  • Ticker: TTEC
  • Exchange: NasdaqGS
  • Founded: 1982
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$2.721b
  • Shares outstanding: 46.73m
  • Website: https://www.ttec.com

Number of Employees


Location

  • TTEC Holdings, Inc.
  • 9197 South Peoria Street
  • Englewood
  • Colorado
  • 80112
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTECNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1996
TH1DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1996

Biography

TTEC Holdings, Inc., a customer experience technology and services company, focuses on the design, implementation, and delivery of transformative customer experience for various brands. It operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 23:54
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.