One-glance verdict
Undervalued
$51.65 our estimate vs market $34.72
Wall Street consensus: $40.17 (-22.2% lower than our fair-value estimate)
33% below our estimate, below the bear case
Fundamentals snapshot
Tetra Tech, Inc.
TTEK · NMS · Industrials · Engineering & Construction
Current price
$34.72
52-week range
$25.81 - $43.14
Market cap
$8.89B
Balance sheet
Watch
14.85x Strong cushion
Net debt $792.66M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 24.3% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 195.1% over 3 years.
- Risk Insider ownership is only 0.5% (peer median: 0.5%).
What this company does
Tetra Tech, Inc.
Tetra Tech provides important consulting and engineering services to help governments and companies manage water, protect the environment, and build sustainable infrastructure. The money mainly comes from these government and commercial clients who need help with complex projects like water management, environmental cleanup, and designing resilient buildings. This business matters because it helps address critical global issues like climate change and resource scarcity by providing expert advice and planning.
How the company got here
Tetra Tech was founded in 1966, starting as a small engineering firm. Over the decades, it grew by taking on increasingly complex projects, particularly those involving environmental and water-related challenges. A key part of its history involves strategic acquisitions, where it bought smaller, specialized engineering companies to broaden its expertise and geographic reach. This approach allowed Tetra Tech to become a major player in providing solutions for government and commercial clients facing infrastructure and environmental needs.
What it actually does
Imagine a company that helps governments and businesses plan, design, and manage big projects that are good for the environment and keep communities running smoothly. Tetra Tech offers expert advice and engineering know-how for things like ensuring clean water, cleaning up polluted land, building better roads and bridges, and designing energy-efficient buildings. They are essentially problem-solvers for complex infrastructure and environmental issues, working on projects that might not be visible to the average person but are crucial for society.
Government Services Group (GSG)
This part of Tetra Tech works primarily with government clients, like federal agencies and local municipalities, as well as international development groups. They provide a wide range of consulting and engineering services. This includes everything from analyzing water resources and managing water systems to cleaning up contaminated sites and designing resilient infrastructure for transportation and community development. They also help governments with sustainable solutions, like managing energy use and tracking greenhouse gas emissions. This segment represents a significant portion of Tetra Tech's business, serving public sector needs.
Commercial/International Services Group (CIG)
The Commercial/International Services Group (CIG) focuses on clients in the private sector and also works with government entities outside of the U.S. This segment offers similar consulting and engineering expertise but tailored for commercial and international markets. Services include planning and designing infrastructure for natural resources, energy, and utilities, as well as facilities like data centers and advanced manufacturing plants. They also provide specialized services such as climate change consulting and environmental remediation. This business line is crucial for Tetra Tech's global reach and diversification beyond domestic government work.
What management is betting on now
Tetra Tech's leadership is focused on expanding its offerings in areas critical for a sustainable future. They are emphasizing growth in water management, environmental solutions, and climate change consulting, recognizing the increasing global demand for these services. The company is also investing in advanced analytics and digital tools to improve project delivery and client outcomes. Management believes that by staying at the forefront of environmental and infrastructure innovation, Tetra Tech can continue to secure large, long-term contracts and drive profitable growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$98.79M
FY2025 Q1
$9.63M
FY2025 Q2
$-11.76M
FY2025 Q3
$345.57M
FY2025 Q4
$95.61M
FY2026 Q1
$68.11M
FY2026 Q2
$159.35M
FY2026 Q3
$225.13M
Revenue
$1.31B
Net income
—
Diluted EPS
0.42
Operating cash flow
$228.94M
Free cash flow
$225.13M
Fetching…
Sources
Revenue
$1.22B
Net income
—
Diluted EPS
0.36
Operating cash flow
$165.34M
Free cash flow
$159.35M
Fetching…
Sources
Revenue
$1.21B
Net income
—
Diluted EPS
0.40
Operating cash flow
$72.27M
Free cash flow
$68.11M
Fetching…
Sources
Revenue
$1.33B
Net income
—
Diluted EPS
0.48
Operating cash flow
$100.85M
Free cash flow
$95.61M
Fetching…
Sources
Revenue
$1.37B
Net income
$113.84M
Diluted EPS
0.43
Operating cash flow
$349.60M
Free cash flow
$345.57M
Fetching…
Sources
Revenue
$1.32B
Net income
$5.39M
Diluted EPS
0.02
Operating cash flow
$-5.82M
Free cash flow
$-11.76M
Fetching…
Sources
Revenue
$1.42B
Net income
—
Diluted EPS
0.00
Operating cash flow
$13.06M
Free cash flow
$9.63M
Fetching…
Sources
Revenue
$1.37B
Net income
—
Diluted EPS
0.35
Operating cash flow
$105.60M
Free cash flow
$98.79M
Fetching…
Sources
Is it cheap or expensive?
Fair value $51.65 vs current price $34.72
Wall Street consensus is the average analyst price target: $40.17 (-22.2% lower than our fair-value estimate).
Our most-likely fair value is $51.65 a share — about 48.7% above today's price of $34.72, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $792.7M. Interest coverage 14.9x.
Net debt
$792.66M
Interest coverage
14.85x
Tetra Tech, Inc.'s profit covers its interest bill about 14.9 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
TTEK
BASELINE
Tetra Tech, Inc.
Total debt $1.02B Interest coverage 14.85x This is the baseline the peer rows are being compared against.
Total debt $4.05B Interest coverage 5.92x -60% vs TTEK Carries about 2.5x less debt cushion than TTEK.
Total debt $3.33B Interest coverage 5.75x -61% vs TTEK Carries about 2.6x less debt cushion than TTEK.
Total debt $1.94B Interest coverage 6.25x -58% vs TTEK Carries about 2.4x less debt cushion than TTEK.
Total debt $2.80B Interest coverage 3.59x -76% vs TTEK Carries about 4.1x less debt cushion than TTEK.
Total debt $1.49B Interest coverage 3.91x -74% vs TTEK Carries about 3.8x less debt cushion than TTEK.
What you should know
The case for and against TTEK
3 Rewards
2 Risks
Rewards
-
Returns 24.3% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 0.8% with 13-year payout history.
Risks
-
Net debt grew 195.1% over 3 years.
-
Insider ownership is only 0.5% (peer median: 0.5%).
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)
20.92x
Forward P/E
20.26x
P/B
4.80x
P/S
2.04x
EV/EBITDA
14.79x
PEG ratio
2.10x
Profitability
How much profit each dollar creates
Gross margin
21.8%
Operating margin
14.3%
Net margin
10.0%
ROE
24.3%
ROA
8.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.55x
Current ratio
1.18x
Quick ratio
1.09x
Total debt
$1.02B
Total cash
$230.84M
Growth
How the business has been compounding
Revenue TTM
$5.07B
Revenue 5Y CAGR
14.1%
EPS TTM
1.66
EPS 5Y CAGR
-1.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$567.40M
Free CF TTM
$439.05M
FCF margin
8.7%
Dividend
Shareholder payout
Yield
0.8%
Payout ratio
16.1%
Last ex-div date
2026-08-13