One-glance verdict
Undervalued
$20.87 our estimate vs market $2.67
Wall Street consensus: $3.00 (-85.6% lower than our fair-value estimate)
87% below our estimate, below the bear case
Fundamentals snapshot
TTEC Holdings, Inc.
TTEC · NMS · Technology · Information Technology Services
Current price
$2.67
52-week range
$1.18 - $3.99
Market cap
$131.85M
Balance sheet
Distressed
1.34x Concerning
Net debt $809.34M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 9/10 years.
- Risk Return on equity was -104.5% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 7.7% to 4.8% over 3 years.
- Risk Net debt grew 0.7% over 3 years.
What this company does
TTEC Holdings, Inc.
TTEC Holdings helps other companies make their customers happy by managing services like call centers and using technology to improve how businesses interact with people. Their money mostly comes from long-term contracts to provide these customer experience (CX) services, which means they get paid regularly like a subscription, offering a steady stream of income. This matters because it shows they have reliable business relationships and can forecast their earnings well.
How the company got here
TTEC Holdings, Inc., originally founded in 1982 as TeleTech Holdings, Inc., has evolved significantly from its early days. The company rebranded to TTEC Holdings, Inc. in May 1996, signaling a shift towards a more comprehensive technology and customer experience focus. Over the decades, TTEC has adapted to the changing landscape of customer interaction, moving from traditional call centers to sophisticated, technology-enabled solutions. This journey reflects a strategic pivot to meet the growing demand for seamless and intelligent customer experiences across various industries.
What it actually does
TTEC Holdings, Inc. is a company that helps other businesses manage and improve how they interact with their customers. Think of it like a behind-the-scenes partner for companies that want to make sure their customers have a great experience, whether they're calling for help, buying something online, or using a company's app. TTEC designs, builds, and runs these customer interactions using a mix of technology and human support, aiming to make every customer touchpoint positive and efficient.
TTEC Digital
The TTEC Digital segment focuses on providing the technology backbone for customer experiences. This includes offering 'contact center as a service' (CCaaS), which is essentially renting out the technology and infrastructure needed to handle customer calls and messages, rather than a company buying and managing it all themselves. They also work with customer relationship management (CRM) tools, which help businesses keep track of their customer interactions, and leverage artificial intelligence (AI) to make these processes smarter. This part of TTEC helps clients plan and implement changes to improve their customer experience, and they also sell, manage, and provide ongoing support for cloud-based and on-premise CX technologies, along with offering consulting services.
TTEC Engage
TTEC Engage is where the company delivers the actual customer service operations, powered by digital tools. This segment provides digitally enhanced customer care, handling everything from answering customer questions and resolving issues to helping companies acquire new customers and keep existing ones happy. They also manage back-office tasks that don't directly involve customer interaction. A growing part of this segment involves AI operations, such as 'data annotation and labeling,' which is the process of preparing data to train AI systems, making them more accurate and effective for tasks like understanding customer sentiment or automating responses.
What management is betting on now
TTEC's leadership is focused on integrating advanced technology, particularly AI and automation, into their customer experience solutions. They are betting that by combining sophisticated digital tools with their operational expertise, they can offer clients more efficient and effective ways to manage customer interactions. This strategy aims to help businesses not only resolve customer issues but also to proactively engage with them, drive sales, and build stronger relationships. The goal is to be a leader in transforming how companies connect with their customers in an increasingly digital world.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-9.79M
FY2025 Q1
$16.19M
FY2025 Q2
$85.53M
FY2025 Q3
$-9.59M
FY2025 Q4
$-9.16M
FY2026 Q1
$21.14M
FY2026 Q2
$38.70M
FY2026 Q3
$27.94M
Revenue
$492.25M
Net income
$-5.03M
Diluted EPS
-0.10
Operating cash flow
$37.01M
Free cash flow
$27.94M
Fetching…
Sources
Revenue
$455.50M
Net income
$-15.38M
Diluted EPS
-0.31
Operating cash flow
$51.34M
Free cash flow
$38.70M
Fetching…
Sources
Revenue
$496.18M
Net income
$-7.61M
Diluted EPS
-0.16
Operating cash flow
$27.54M
Free cash flow
$21.14M
Fetching…
Sources
Revenue
$569.96M
Net income
$-172.49M
Diluted EPS
-3.57
Operating cash flow
$2.57M
Free cash flow
$-9.16M
Fetching…
Sources
Revenue
$519.14M
Net income
$-13.37M
Diluted EPS
-0.28
Operating cash flow
$4.20M
Free cash flow
$-9.59M
Fetching…
Sources
Revenue
$513.57M
Net income
$-7.99M
Diluted EPS
-0.17
Operating cash flow
$92.71M
Free cash flow
$85.53M
Fetching…
Sources
Revenue
$534.23M
Net income
$1.38M
Diluted EPS
0.03
Operating cash flow
$21.59M
Free cash flow
$16.19M
Fetching…
Sources
Revenue
$567.44M
Net income
$2.00M
Diluted EPS
0.04
Operating cash flow
$-1.09M
Free cash flow
$-9.79M
Fetching…
Sources
Is it cheap or expensive?
Fair value $20.87 vs current price $2.67
Wall Street consensus is the average analyst price target: $3.00 (-85.6% lower than our fair-value estimate).
Our most-likely fair value is $20.87 a share — about 681.6% above today's price of $2.67, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $809.3M. Interest coverage 1.3x.
Net debt
$809.34M
Interest coverage
1.34x
TTEC Holdings, Inc.'s profit covers its interest bill about 1.3 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
TTEC
BASELINE
TTEC Holdings, Inc.
Total debt $900.43M Interest coverage 1.34x This is the baseline the peer rows are being compared against.
Total debt $1.03B Interest coverage -1.21x -100% vs TTEC This peer has almost no interest-payment cushion compared with TTEC.
Total debt $63.83M Interest coverage 58.72x +4,281% vs TTEC Carries about 43.8x more debt cushion than TTEC.
Total debt $542.06M Interest coverage 7.68x +473% vs TTEC Carries about 5.7x more debt cushion than TTEC.
Total debt $5.28B Interest coverage 2.10x +57% vs TTEC Carries about 1.6x more debt cushion than TTEC.
Total debt $11.17M Interest coverage 9.76x +628% vs TTEC Carries about 7.3x more debt cushion than TTEC.
What you should know
The case for and against TTEC
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 9/10 years.
Risks
-
Return on equity was -104.5% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 7.7% to 4.8% over 3 years.
-
Net debt grew 0.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
2.23x
P/B
1.97x
P/S
0.07x
EV/EBITDA
5.25x
PEG ratio
0.52x
Profitability
How much profit each dollar creates
Gross margin
23.9%
Operating margin
4.8%
Net margin
-10.0%
ROE
-104.5%
ROA
4.0%
Health
Liquidity and balance-sheet strength
Debt / equity
10.52x
Current ratio
1.76x
Quick ratio
1.46x
Total debt
$900.43M
Total cash
$91.09M
Growth
How the business has been compounding
Revenue TTM
$2.01B
Revenue 5Y CAGR
-1.5%
EPS TTM
-4.14
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$118.46M
Free CF TTM
$82.97M
FCF margin
4.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
577.8%
Last ex-div date
2024-04-02