Tetra Tech Gross Profit vs. Return On Equity

TTEK Stock  USD 42.80  0.46  1.09%   
Considering the key profitability indicators obtained from Tetra Tech's historical financial statements, Tetra Tech may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Tetra Tech's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1990-12-31
Previous Quarter
223.2 M
Current Value
245.3 M
Quarterly Volatility
51.3 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Tetra Tech's Days Sales Outstanding is quite stable compared to the past year. Days Of Sales Outstanding is expected to rise to 103.08 this year, although the value of Price To Sales Ratio will most likely fall to 1.28. At this time, Tetra Tech's Net Income From Continuing Ops is quite stable compared to the past year. Non Operating Income Net Other is expected to rise to about 26.2 M this year, although the value of Net Interest Income is projected to rise to (39.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.130.1667
Significantly Down
Pretty Stable
Net Profit Margin0.04620.0641
Way Down
Slightly volatile
Operating Profit Margin0.06410.0963
Way Down
Pretty Stable
Pretax Profit Margin0.05890.0892
Way Down
Slightly volatile
Return On Assets0.07020.0795
Fairly Down
Slightly volatile
Return On Equity0.140.1821
Way Down
Slightly volatile
For Tetra Tech profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tetra Tech to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tetra Tech utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tetra Tech's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tetra Tech over time as well as its relative position and ranking within its peers.
  

Tetra Tech's Revenue Breakdown by Earning Segment

Check out World Market Map.
For more information on how to buy Tetra Stock please use our How to buy in Tetra Stock guide.
Is Environmental & Facilities Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Tetra Tech. If investors know Tetra will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Tetra Tech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.749
Earnings Share
1.25
Revenue Per Share
15.861
Quarterly Revenue Growth
0.082
Return On Assets
0.0765
The market value of Tetra Tech is measured differently than its book value, which is the value of Tetra that is recorded on the company's balance sheet. Investors also form their own opinion of Tetra Tech's value that differs from its market value or its book value, called intrinsic value, which is Tetra Tech's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Tetra Tech's market value can be influenced by many factors that don't directly affect Tetra Tech's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Tetra Tech's value and its price as these two are different measures arrived at by different means. Investors typically determine if Tetra Tech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tetra Tech's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Tetra Tech Return On Equity vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Tetra Tech's current stock value. Our valuation model uses many indicators to compare Tetra Tech value to that of its competitors to determine the firm's financial worth.
Tetra Tech is rated below average in gross profit category among its peers. It is rated below average in return on equity category among its peers . The ratio of Gross Profit to Return On Equity for Tetra Tech is about  3,084,453,376 . At this time, Tetra Tech's Gross Profit is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Tetra Tech by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Tetra Return On Equity vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Tetra Tech

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
575.56 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Tetra Tech

Return On Equity

 = 

Net Income

Total Equity

 = 
0.19
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Tetra Return On Equity Comparison

Tetra Tech is currently under evaluation in return on equity category among its peers.

Tetra Tech Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Tetra Tech, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tetra Tech will eventually generate negative long term returns. The profitability progress is the general direction of Tetra Tech's change in net profit over the period of time. It can combine multiple indicators of Tetra Tech, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-78.9 M-74.9 M
Operating Income500.7 M525.8 M
Income Before Tax463.5 M486.6 M
Total Other Income Expense Net-37.3 M-35.4 M
Net Income333.4 M350.1 M
Income Tax Expense130 M136.5 M
Net Income Applicable To Common Shares302.6 M317.7 M
Net Income From Continuing Ops314.5 M330.2 M
Non Operating Income Net Other24.9 M26.2 M
Interest Income5.3 M5.6 M
Net Interest Income-41.9 M-39.8 M
Change To Netincome6.9 M12 M
Net Income Per Share 1.25  0.49 
Income Quality 1.08  1.29 
Net Income Per E B T 0.72  0.78 

Tetra Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Tetra Tech. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Tetra Tech position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Tetra Tech's important profitability drivers and their relationship over time.

Use Tetra Tech in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Tetra Tech position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tetra Tech will appreciate offsetting losses from the drop in the long position's value.

Tetra Tech Pair Trading

Tetra Tech Pair Trading Analysis

The ability to find closely correlated positions to Tetra Tech could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tetra Tech when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Tetra Tech - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Tetra Tech to buy it.
The correlation of Tetra Tech is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Tetra Tech moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tetra Tech moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Tetra Tech can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Tetra Tech position

In addition to having Tetra Tech in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Aggressive Defence Thematic Idea Now

Aggressive Defence
Aggressive Defence Theme
Macroaxis small cap, aggressive-outlook picks designed for investors that are willing to accept higher levels of risk to hedge exposure to above-average market volatility. The Aggressive Defence theme has 50 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aggressive Defence Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Tetra Tech is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Tetra Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Tetra Tech Stock. Highlighted below are key reports to facilitate an investment decision about Tetra Tech Stock:
Check out World Market Map.
For more information on how to buy Tetra Stock please use our How to buy in Tetra Stock guide.
You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
To fully project Tetra Tech's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tetra Tech at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Tetra Tech's income statement, its balance sheet, and the statement of cash flows.
Potential Tetra Tech investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Tetra Tech investors may work on each financial statement separately, they are all related. The changes in Tetra Tech's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Tetra Tech's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.