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$23.48 - $69.47$37.08
Multi-Stage$15.64 - $17.09$16.35
Blended Fair Value$26.72
Current Price$33.63
Upside-20.55%
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$23.48$37.08$69.47
Upside / Downside-30.18%10.27%106.58%

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)120.49122.79125.10
Year 3 PV (M)145.59149.77154.03
Year 4 PV (M)169.04175.54182.23
Year 5 PV (M)190.92200.15209.72
PV of Terminal Value (M)3,470.733,638.363,812.42
Equity Value (M)4,190.454,381.174,578.95
Shares Outstanding (M)267.92267.92267.92
Fair Value$15.64$16.35$17.09
Upside / Downside-53.49%-51.38%-49.18%

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