Tetra Tech, Inc.
Tetra Tech, Inc. Fundamental Analysis
Tetra Tech, Inc. (TTEK) shows moderate financial fundamentals with a PE ratio of 23.76, profit margin of 7.34%, and ROE of 20.29%. The company generates $4.8B in annual revenue with moderate year-over-year growth of 4.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TTEK's fundamental strength across five key dimensions:
Efficiency Score
WeakTTEK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTTEK trades at attractive valuation levels.
Growth Score
WeakTTEK faces weak or negative growth trends.
Financial Health Score
ExcellentTTEK maintains a strong and stable balance sheet.
Profitability Score
ModerateTTEK maintains healthy but balanced margins.
Key Financial Metrics
Is TTEK Expensive or Cheap?
P/E Ratio
TTEK trades at 23.76 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TTEK's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Tetra Tech, Inc. at 4.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.13 times EBITDA. This signals the market has high growth expectations.
How Well Does TTEK Make Money?
Net Profit Margin
For every $100 in sales, Tetra Tech, Inc. keeps $7.34 as profit after all expenses.
Operating Margin
Core operations generate 10.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.29 in profit for every $100 of shareholder equity.
ROA
Tetra Tech, Inc. generates $8.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tetra Tech, Inc. produces operating cash flow of $516.89M, showing steady but balanced cash generation.
Free Cash Flow
Tetra Tech, Inc. generates strong free cash flow of $497.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.91 in free cash annually.
FCF Yield
TTEK converts 5.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How TTEK Stacks Against Its Sector Peers
| Metric | TTEK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.76 | 25.83 | Neutral |
| ROE | 20.29% | 1278.00% | Weak |
| Net Margin | 7.34% | -43774.00% (disorted) | Weak |
| Debt/Equity | 0.57 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.31 | 10.63 | Neutral |
| ROA | 8.26% | -1539613.00% (disorted) | Weak |
TTEK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tetra Tech, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
137.40%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
45.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
78.63%
Industry Style: Cyclical, Value, Infrastructure
High Growth