Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Tetra Tech, Inc. (TTEK)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$23.50 - $69.61$37.13
Multi-Stage$15.65 - $17.10$16.36
Blended Fair Value$26.74
Current Price$33.63
Upside-20.48%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS13.36%13.56%0.240.220.190.170.150.130.110.090.080.07
YoY Growth--10.56%12.89%13.05%15.13%15.25%17.08%21.23%12.94%9.82%8.20%
Dividend Yield--0.72%0.55%0.58%0.59%0.44%0.56%0.64%0.88%0.84%0.85%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)247.72
(-) Cash Dividends Paid (M)65.04
(=) Cash Retained (M)182.69
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)49.5430.9718.58
Cash Retained (M)182.69182.69182.69
(-) Cash Required (M)-49.54-30.97-18.58
(=) Excess Retained (M)133.14151.72164.11
(/) Shares Outstanding (M)267.92267.92267.92
(=) Excess Retained per Share0.500.570.61
LTM Dividend per Share0.240.240.24
(+) Excess Retained per Share0.500.570.61
(=) Adjusted Dividend0.740.810.86
WACC / Discount Rate8.82%8.82%8.82%
Growth Rate5.50%6.50%7.50%
Fair Value$23.50$37.13$69.61
Upside / Downside-30.12%10.39%106.98%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)247.72263.83280.97299.24318.69339.40349.59
Payout Ratio26.25%39.00%51.75%64.50%77.25%90.00%92.50%
Projected Dividends (M)65.04102.90145.41193.01246.19305.46323.37

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.82%8.82%8.82%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)93.6794.5695.45
Year 2 PV (M)120.50122.79125.11
Year 3 PV (M)145.60149.78154.04
Year 4 PV (M)169.06175.56182.25
Year 5 PV (M)190.95200.17209.75
PV of Terminal Value (M)3,472.663,640.393,814.54
Equity Value (M)4,192.444,383.254,581.13
Shares Outstanding (M)267.92267.92267.92
Fair Value$15.65$16.36$17.10
Upside / Downside-53.47%-51.35%-49.16%

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