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Tetra Tech

Nasdaq:TTEK
Snowflake Description

Excellent balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TTEK
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

Tetra Tech, Inc. provides consulting and engineering services worldwide. The last earnings update was 63 days ago. More info.


Add to Portfolio Compare Print
  • Tetra Tech has significant price volatility in the past 3 months.
TTEK Share Price and Events
7 Day Returns
3.8%
NasdaqGS:TTEK
-6.8%
US Commercial Services
-4.1%
US Market
1 Year Returns
19%
NasdaqGS:TTEK
-20.5%
US Commercial Services
-14.9%
US Market
TTEK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tetra Tech (TTEK) 3.8% -18.3% -17.5% 19% 75.2% 195.8%
US Commercial Services -6.8% -26.3% -28.5% -20.5% 4% 18.8%
US Market -4.1% -19.1% -23.4% -14.9% 3.5% 14.5%
1 Year Return vs Industry and Market
  • TTEK outperformed the Commercial Services industry which returned -20.5% over the past year.
  • TTEK outperformed the Market in United States of America which returned -14.9% over the past year.
Price Volatility
TTEK
Industry
5yr Volatility vs Market

Value

 Is Tetra Tech undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tetra Tech to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tetra Tech.

NasdaqGS:TTEK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:TTEK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.594 (1 + (1- 21%) (14.95%))
0.775
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.8 * 5.44%)
6.09%

Discounted Cash Flow Calculation for NasdaqGS:TTEK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tetra Tech is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:TTEK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.09%)
2020 179.05 Analyst x4 168.77
2021 199.86 Analyst x4 177.56
2022 179.50 Analyst x1 150.32
2023 179.23 Est @ -0.15% 141.47
2024 179.97 Est @ 0.42% 133.90
2025 181.44 Est @ 0.81% 127.24
2026 183.42 Est @ 1.09% 121.24
2027 185.77 Est @ 1.29% 115.75
2028 188.42 Est @ 1.42% 110.66
2029 191.28 Est @ 1.52% 105.88
Present value of next 10 years cash flows $1,352.00
NasdaqGS:TTEK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $191.28 × (1 + 1.74%) ÷ (6.09% – 1.74%)
$4,471.60
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,471.60 ÷ (1 + 6.09%)10
$2,475.35
NasdaqGS:TTEK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,352.00 + $2,475.35
$3,827.35
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,827.35 / 54.68
$69.99
NasdaqGS:TTEK Discount to Share Price
Calculation Result
Value per share (USD) From above. $69.99
Current discount Discount to share price of $71.84
= -1 x ($71.84 - $69.99) / $69.99
-2.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Tetra Tech is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tetra Tech's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tetra Tech's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:TTEK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-29) in USD $2.99
NasdaqGS:TTEK Share Price ** NasdaqGS (2020-04-03) in USD $71.84
United States of America Commercial Services Industry PE Ratio Median Figure of 53 Publicly-Listed Commercial Services Companies 19.23x
United States of America Market PE Ratio Median Figure of 2,944 Publicly-Listed Companies 12.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tetra Tech.

NasdaqGS:TTEK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:TTEK Share Price ÷ EPS (both in USD)

= 71.84 ÷ 2.99

24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tetra Tech is overvalued based on earnings compared to the US Commercial Services industry average.
  • Tetra Tech is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Tetra Tech's expected growth come at a high price?
Raw Data
NasdaqGS:TTEK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
7.1%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 35 Publicly-Listed Commercial Services Companies 1.21x
United States of America Market PEG Ratio Median Figure of 2,008 Publicly-Listed Companies 0.91x

*Line of best fit is calculated by linear regression .

NasdaqGS:TTEK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24x ÷ 7.1%

3.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tetra Tech is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Tetra Tech's assets?
Raw Data
NasdaqGS:TTEK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-29) in USD $18.76
NasdaqGS:TTEK Share Price * NasdaqGS (2020-04-03) in USD $71.84
United States of America Commercial Services Industry PB Ratio Median Figure of 86 Publicly-Listed Commercial Services Companies 1.14x
United States of America Market PB Ratio Median Figure of 5,142 Publicly-Listed Companies 1.22x
NasdaqGS:TTEK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:TTEK Share Price ÷ Book Value per Share (both in USD)

= 71.84 ÷ 18.76

3.83x

* Primary Listing of Tetra Tech.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tetra Tech is overvalued based on assets compared to the US Commercial Services industry average.
X
Value checks
We assess Tetra Tech's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Tetra Tech has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tetra Tech expected to grow at an attractive rate?
  • Tetra Tech's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Tetra Tech's earnings growth is positive but not above the United States of America market average.
  • Tetra Tech's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:TTEK Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:TTEK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 7.1%
NasdaqGS:TTEK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 1.9%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 13.6%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:TTEK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:TTEK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 2,476 187 1
2021-09-30 2,621 244 197 7
2020-09-30 2,525 208 173 7
2020-04-03
NasdaqGS:TTEK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-29 2,450 206 164
2019-09-29 2,390 209 159
2019-06-30 2,315 223 176
2019-03-31 2,262 261 160
2018-12-30 2,209 228 133
2018-09-30 2,201 186 137
2018-07-01 2,182 143 143
2018-04-01 2,110 111 139
2017-12-31 2,089 139 137
2017-10-01 2,034 141 118
2017-07-02 2,031 124 115
2017-04-02 2,031 162 110
2017-01-01 1,998 60 87

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tetra Tech's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
  • Tetra Tech's revenue is expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:TTEK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Tetra Tech Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TTEK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 3.39 3.39 3.39 1.00
2021-09-30 3.63 3.91 3.01 6.00
2020-09-30 3.39 3.55 2.91 6.00
2020-04-03
NasdaqGS:TTEK Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-29 2.99
2019-09-29 2.89
2019-06-30 3.19
2019-03-31 2.89
2018-12-30 2.39
2018-09-30 2.46
2018-07-01 2.55
2018-04-01 2.47
2017-12-31 2.43
2017-10-01 2.07
2017-07-02 2.00
2017-04-02 1.92
2017-01-01 1.51

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tetra Tech is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Tetra Tech's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tetra Tech has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Tetra Tech performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tetra Tech's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tetra Tech has delivered over 20% year on year earnings growth in the past 5 years.
  • Tetra Tech's 1-year earnings growth exceeds its 5-year average (23.4% vs 22%)
  • Tetra Tech's earnings growth has exceeded the US Commercial Services industry average in the past year (23.4% vs 1.4%).
Earnings and Revenue History
Tetra Tech's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tetra Tech Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TTEK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-29 2,450.30 163.98 203.69
2019-09-29 2,389.64 158.67 200.23
2019-06-30 2,314.69 175.94 187.42
2019-03-31 2,261.84 160.03 184.74
2018-12-30 2,209.25 132.85 182.64
2018-09-30 2,200.73 136.88 185.22
2018-07-01 2,182.02 142.55 188.97
2018-04-01 2,110.15 139.21 182.86
2017-12-31 2,089.31 137.35 181.27
2017-10-01 2,034.01 117.87 177.22
2017-07-02 2,030.83 114.51 178.43
2017-04-02 2,030.99 110.22 179.05
2017-01-01 1,997.80 87.11 174.26
2016-10-02 1,929.21 83.78 171.99
2016-06-26 1,825.34 20.95 169.39
2016-03-27 1,748.60 21.47 165.39
2015-12-27 1,702.59 36.74 167.50
2015-09-27 1,718.72 39.07 170.46
2015-06-28 1,753.92 93.38 174.22
2015-03-29 1,790.78 93.84 180.40
2014-12-28 1,814.01 106.53 182.11
2014-09-28 1,859.92 108.27 187.30
2014-06-29 1,929.28 110.88 186.97
2014-03-30 1,945.66 5.84 196.54
2013-12-29 2,010.63 -1.05 200.72
2013-09-29 2,024.83 -2.14 199.73
2013-06-30 2,029.54 3.09 204.59

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tetra Tech has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tetra Tech used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.
  • Tetra Tech has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tetra Tech's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tetra Tech has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Tetra Tech's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tetra Tech's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tetra Tech is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tetra Tech's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Tetra Tech's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tetra Tech Company Filings, last reported 3 months ago.

NasdaqGS:TTEK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-29 1,026.77 344.25 110.83
2019-09-29 989.46 287.44 120.73
2019-06-30 1,015.79 346.42 111.23
2019-03-31 990.61 274.10 130.73
2018-12-30 954.30 263.00 66.50
2018-09-30 967.10 277.31 146.19
2018-07-01 936.29 437.69 214.04
2018-04-01 940.23 479.01 203.27
2017-12-31 947.12 447.94 173.14
2017-10-01 928.62 356.87 190.02
2017-07-02 915.03 325.81 138.80
2017-04-02 902.87 345.57 171.34
2017-01-01 872.74 388.77 126.98
2016-10-02 869.40 348.58 160.46
2016-06-26 863.87 367.17 153.92
2016-03-27 850.15 362.16 113.67
2015-12-27 843.94 191.45 125.09
2015-09-27 856.80 195.39 135.33
2015-06-28 954.42 237.63 175.18
2015-03-29 922.90 240.85 98.52
2014-12-28 997.05 201.55 98.89
2014-09-28 1,013.06 203.88 122.38
2014-06-29 1,066.16 205.23 188.87
2014-03-30 1,041.92 207.01 167.23
2013-12-29 1,018.24 207.08 160.80
2013-09-29 998.80 208.74 129.31
2013-06-30 976.96 212.44 146.34
  • Tetra Tech's level of debt (33.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (20.3% vs 33.5% today).
  • Debt is well covered by operating cash flow (59.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.3x coverage).
X
Financial health checks
We assess Tetra Tech's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tetra Tech has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.84%
Current annual income from Tetra Tech dividends. Estimated to be 0.87% next year.
If you bought $2,000 of Tetra Tech shares you are expected to receive $17 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tetra Tech's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (2.04%).
  • Tetra Tech's dividend is below the markets top 25% of dividend payers in United States of America (5.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:TTEK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1941 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:TTEK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.60 1.00
2021-09-30 0.65 2.00
2020-09-30 0.62 2.00
2020-04-03
NasdaqGS:TTEK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-29 0.600 0.735
2019-11-13 0.600 0.687
2019-07-31 0.600 0.721
2019-05-01 0.600 0.812
2018-11-07 0.480 0.834
2018-08-01 0.480 0.705
2018-05-02 0.480 0.848
2017-11-08 0.400 0.811
2017-05-03 0.400 0.882
2017-02-01 0.360 0.872
2016-11-09 0.360 0.844
2016-07-27 0.360 1.010
2016-01-27 0.320 1.097
2015-11-11 0.320 1.236
2015-07-30 0.320 1.230
2015-04-30 0.320 1.241
2015-01-29 0.280 1.134
2014-11-13 0.280 1.080
2014-07-30 0.280 1.098
2014-04-30 0.280 1.040

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tetra Tech is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Tetra Tech is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Tetra Tech's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Tetra Tech's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Tetra Tech's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Tetra Tech's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tetra Tech afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tetra Tech has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Batrack
COMPENSATION $6,499,036
AGE 61
TENURE AS CEO 14.4 years
CEO Bio

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 2019. Mr. Batrack manages Tetra Tech, Inc.'s original engineering operating division and is responsible for its day to day operations and primary responsibility for M&A strategy. He served as project manager on numerous government client projects. He served as Senior Vice President of Tetra Tech, Inc. since November 2002 and as Executive Vice President since October 2004 and Chief Operating Officer since October 6, 2004. He joined predecessor of Tetra Tech Inc. in 1980. He served in numerous capacities, including Project Scientist, Project Manager, Office Manager, Operations Manager and Vice President. He has managed complex solutions for many small and Fortune 500 customers, both in the U.S and internationally. He serves as a Director of Tetra Tech EC, Inc. and Coffey International Limited. He has been Director of Tetra Tech Inc., since November 17, 2005. Mr. Batrack holds a Bachelor in Business Administration from the University of Washington.

CEO Compensation
  • Dan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dan's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Tetra Tech management team in years:

8.8
Average Tenure
59
Average Age
  • The average tenure for the Tetra Tech management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Dan Batrack

TITLE
Chairman & CEO
COMPENSATION
$6M
AGE
61
TENURE
14.4 yrs

Leslie Shoemaker

TITLE
President
COMPENSATION
$2M
AGE
62
TENURE
0.6 yrs

Steve Burdick

TITLE
CFO, Executive VP & Treasurer
COMPENSATION
$2M
AGE
54
TENURE
9 yrs

Derek Amidon

TITLE
Senior VP
COMPENSATION
$1M
AGE
52
TENURE
2.4 yrs

Roger Argus

TITLE
Senior VP
COMPENSATION
$1M
AGE
58
TENURE
2.4 yrs

Brian Carter

TITLE
Senior VP
AGE
52
TENURE
8.8 yrs

Craig Christensen

TITLE
Senior VP & Chief Information Officer
AGE
66
TENURE
13.3 yrs

Richard Lemmon

TITLE
Senior Vice President of Corporate Administration
COMPENSATION
$1M
AGE
60

Preston Hopson

TITLE
Senior VP
AGE
42
TENURE
2.3 yrs

William Brownlie

TITLE
Senior VP
COMPENSATION
$149K
AGE
65
TENURE
10.6 yrs
Board of Directors Tenure

Average tenure and age of the Tetra Tech board of directors in years:

9.5
Average Tenure
63
Average Age
  • The tenure for the Tetra Tech board of directors is about average.
Board of Directors

Li-San Hwang

TITLE
Chairman Emeritus
COMPENSATION
$703K
AGE
84
TENURE
14.1 yrs

Dan Batrack

TITLE
Chairman & CEO
COMPENSATION
$6M
AGE
61
TENURE
12.3 yrs

Ken Thompson

TITLE
Presiding Director
COMPENSATION
$283K
AGE
67

Kim Ritrievi

TITLE
Independent Director
COMPENSATION
$263K
AGE
60
TENURE
6.4 yrs

Joanne Maguire

TITLE
Independent Director
COMPENSATION
$259K
AGE
65
TENURE
3.4 yrs

Gary Birkenbeuel

TITLE
Independent Director
COMPENSATION
$271K
AGE
61
TENURE
1.8 yrs

Patrick Haden

TITLE
Independent Director
COMPENSATION
$254K
AGE
66
TENURE
27.3 yrs

Chris Lewis

TITLE
Independent Director
COMPENSATION
$260K
AGE
63
TENURE
32.2 yrs

Kirsten Volpi

TITLE
Independent Director
COMPENSATION
$260K
AGE
54
TENURE
6.8 yrs
Who owns this company?
Recent Insider Trading
  • Tetra Tech individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Feb 20 Sell Mark Rynning Individual 04. Feb 20 04. Feb 20 -122 $89.33 $-10,898
12. Dec 19 Sell Brian Carter Individual 10. Dec 19 10. Dec 19 -3,099 $86.00 $-266,505
12. Dec 19 Sell Kirsten Volpi Individual 10. Dec 19 10. Dec 19 -425 $85.99 $-36,544
05. Dec 19 Sell Patrick Haden Individual 03. Dec 19 03. Dec 19 -3,830 $86.24 $-330,297
27. Nov 19 Sell Mark Rynning Individual 25. Nov 19 25. Nov 19 -1,015 $87.21 $-88,517
22. Nov 19 Sell Roger Argus Individual 20. Nov 19 21. Nov 19 -1,449 $86.48 $-125,020
13. Sep 19 Sell John Lewis Individual 11. Sep 19 11. Sep 19 -4,489 $82.12 $-368,647
17. May 19 Sell Mark Rynning Individual 16. May 19 16. May 19 -871 $67.37 $-58,681
X
Management checks
We assess Tetra Tech's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tetra Tech has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Despite Its High P/E Ratio, Is Tetra Tech, Inc. (NASDAQ:TTEK) Still Undervalued?

We'll look at Tetra Tech, Inc.'s (NASDAQ:TTEK) P/E ratio and reflect on what it tells us about the company's share price. … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Tetra Tech: P/E of 25.42 = $81.07 ÷ $3.19 (Based on the year to June 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Does Tetra Tech Have A Relatively High Or Low P/E For Its Industry?

Simply Wall St -

Does Tetra Tech, Inc. (NASDAQ:TTEK) Have A High Beta?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Given that it has a beta of 1.11, we can surmise that the Tetra Tech share price has been fairly sensitive to market volatility (over the last 5 years). … What this means for you: Beta only tells us that the Tetra Tech share price is sensitive to broader market movements.

Simply Wall St -

How Did Tetra Tech, Inc.'s (NASDAQ:TTEK) 17% ROE Fare Against The Industry?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Tetra Tech: 17% = US$176m ÷ US$1.0b (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Tetra Tech Have A Good Return On Equity? … The Importance Of Debt To Return On Equity Most companies need money -- from somewhere -- to grow their profits.

Simply Wall St -

We Think Tetra Tech (NASDAQ:TTEK) Can Manage Its Debt With Ease

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … View our latest analysis for Tetra Tech What Is Tetra Tech's Net Debt? … Over the last three years, Tetra Tech recorded free cash flow worth a fulsome 87% of its EBIT, which is stronger than we'd usually expect.

Simply Wall St -

Should You Like Tetra Tech, Inc.’s (NASDAQ:TTEK) High Return On Capital Employed?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Tetra Tech: 0.16 = US$206m ÷ (US$2.0b - US$624m) (Based on the trailing twelve months to March 2019.) Therefore, Tetra Tech has an ROCE of 16%. … How Tetra Tech's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Estimating The Intrinsic Value Of Tetra Tech, Inc. (NASDAQ:TTEK)

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $187.75 $176.03 $217.40 $214.45 $214.17 $215.72 $218.59 $222.41 $226.96 $232.06 Growth Rate Estimate Source Analyst x4 Analyst x3 Analyst x2 Est @ -1.36% Est @ -0.13% Est @ 0.73% Est @ 1.33% Est @ 1.75% Est @ 2.04% Est @ 2.25% Present Value ($, Millions) Discounted @ 7.58% $174.52 $152.09 $174.59 $160.08 $148.61 $139.14 $131.05 $123.94 $117.56 $111.73 Present Value of 10-year Cash Flow (PVCF)= $1.43b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.6%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$232m × (1 + 2.7%) ÷ (7.6% – 2.7%) = US$4.9b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$4.9b ÷ ( 1 + 7.6%)10 = $2.37b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $3.80b.

Simply Wall St -

With 15% Earnings Growth, Did Tetra Tech, Inc. (NASDAQ:TTEK) Outperform The Industry?

Today I will take you through a basic sense check to gain perspective on how Tetra Tech is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period. … Check out our latest analysis for Tetra Tech Could TTEK beat the long-term trend and outperform its industry? … I suggest you continue to research Tetra Tech to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for TTEK’s future growth?

Simply Wall St -

If You Like EPS Growth Then Check Out Tetra Tech (NASDAQ:TTEK) Before It's Too Late

Check out our latest analysis for Tetra Tech How Fast Is Tetra Tech Growing Its Earnings Per Share? … Over the last three years, Tetra Tech has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. … Although Tetra Tech certainly looks good to me, I would like it more if insiders were buying up shares.

Simply Wall St -

Does Tetra Tech, Inc. (NASDAQ:TTEK) Have A High Beta?

(NASDAQ:TTEK), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … View our latest analysis for Tetra Tech What TTEK's beta value tells investors Given that it has a beta of 1.18, we can surmise that the Tetra Tech share price has been fairly sensitive to market volatility (over the last 5 years). … What this means for you: Beta only tells us that the Tetra Tech share price is sensitive to broader market movements.

Simply Wall St -

Is Tetra Tech, Inc. (NASDAQ:TTEK) A Volatile Stock?

(NASDAQ:TTEK), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

Company Info

Description

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.

Details
Name: Tetra Tech, Inc.
TTEK
Exchange: NasdaqGS
Founded: 1966
$3,928,485,054
54,683,812
Website: http://www.tetratech.com
Address: Tetra Tech, Inc.
3475 East Foothill Boulevard,
Pasadena,
California, 91107,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS TTEK Common Stock Nasdaq Global Select US USD 17. Dec 1991
DB TT6 Common Stock Deutsche Boerse AG DE EUR 17. Dec 1991
BRSE TT6 Common Stock Berne Stock Exchange CH CHF 17. Dec 1991
BMV TTEK * Common Stock Bolsa Mexicana de Valores MX MXN 17. Dec 1991
Number of employees
Current staff
Staff numbers
20,000
Tetra Tech employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 23:45
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/01/31
Last earnings reported: 2019/12/29
Last annual earnings reported: 2019/09/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.