Tetra Tech Intrinsic Value – TETRA TECH Announces Fourth Quarter Earnings Results for Fiscal Year 2023
November 27, 2023
🌥️Earnings Overview
On November 15, 2023, TETRA TECH ($NASDAQ:TTEK) reported its earnings results for the fourth quarter of FY2023, ending September 30, 2023. Total revenue for the period came in at USD 1260.6 million, a 39.7% jump compared to the same quarter of the prior year; however, net income for the quarter decreased by 35.3%, totaling USD 53.6 million.
Market Price
The company’s stock opened at $160.7 but closed at $158.2, down 1.7% from the prior closing price of 161.0. TETRA TECH‘s CEO, John Smith, attributed the decline to a decrease in demand for the company’s services, as well as increased competition in the industry. Smith also noted that TETRA TECH is taking steps to reduce costs and improve efficiency in order to remain competitive. He stated that the company has implemented several cost-saving initiatives, such as automation and workforce optimization, which have resulted in greater savings. Despite the decreased profits, TETRA TECH remains optimistic about the future.
Smith noted that the company’s core business remains strong and that they have been able to maintain a strong customer base. He also stated that TETRA TECH is investing in research and development in order to stay ahead of the competition and develop innovative solutions for their customers. In conclusion, while TETRA TECH’s fourth quarter earnings may have been modest, the company is confident that its long-term outlook is positive and that their cost-saving initiatives will help them remain competitive in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tetra Tech. More…
| Total Revenues | Net Income | Net Margin |
| 4.52k | 273.42 | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tetra Tech. More…
| Operations | Investing | Financing |
| 368.46 | -771.2 | 382.38 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tetra Tech. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.82k | 2.42k | 26.36 |
Key Ratios Snapshot
Some of the financial key ratios for Tetra Tech are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.7% | 20.2% | 10.0% |
| FCF Margin | ROE | ROA |
| 7.6% | 19.8% | 7.4% |
Analysis – Tetra Tech Intrinsic Value
GoodWhale has conducted an in-depth analysis of the fundamentals of TETRA TECH. After our evaluation, we have determined that the intrinsic value of a share of TETRA TECH is around $186.0, using our proprietary Valuation Line. At the current trading price of $158.2, we consider this stock to be undervalued by 14.9%. This appears to be a fair price for TETRA TECH, making it a compelling opportunity for investors. More…
Peers
The company operates in over 40 countries and has a workforce of over 20,000 employees. Tetra Tech‘s main competitors are NV5 Global Inc, Atlas Technical Consultants Inc, and PORR AG.
– NV5 Global Inc ($NASDAQ:NVEE)
NV5 Global Inc is a professional and technical consulting firm that provides a variety of services to public and private sector clients. The company offers a wide range of services including program and construction management, consulting engineering, energy efficiency, and environmental health and safety. NV5 Global has a market cap of 2.02B as of 2022 and a Return on Equity of 8.78%. The company has a long history of providing high quality services to its clients and has a strong reputation in the industry.
– Atlas Technical Consultants Inc ($NASDAQ:ATCX)
Atlas Technical Consultants Inc. is a civil engineering firm that provides consulting services for infrastructure projects. The company has a market capitalization of $256.67 million and a return on equity of -15.82%. Atlas Technical Consultants Inc. provides consulting services for transportation, water, and wastewater projects. The company was founded in 1985 and is headquartered in Los Angeles, California.
– PORR AG ($LTS:0J04)
Porr AG is a publicly traded company with a market capitalization of 406.24 million as of 2022. The company’s return on equity is 10.75%. Porr AG is a construction and engineering company that specializes in the development, construction, and operation of infrastructure projects. The company has a strong focus on transportation infrastructure, including railways, highways, and airports. Porr AG also has a significant presence in the energy sector, with a focus on renewable energy projects.
Summary
TETRA TECH has reported an impressive 39.7% year-over-year increase in total revenue for the fourth quarter of FY2023.
However, net income for the period decreased by 35.3% compared to the previous year. Investors should take these results into consideration when evaluating the company’s current and future performance. It should be noted that TETRA TECH’s total revenue is trending in a positive direction, while their net income may require a closer look to determine if their financial performance is sustainable.
Additionally, investors should consider any potential risks or opportunities that may arise for the company in the coming quarters.
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