Tetra Tech Bought Its Way To The Top, Can It Keep Doing This?

Mar. 15, 2025 11:30 AM ETTetra Tech, Inc. (TTEK) StockTTEK
Hong Chew Eu
1.1K Followers
(18min)

Summary

  • Tetra Tech has a strong balance sheet, a resilient revenue base, and delivered double-digit revenue growth through strategic acquisitions, expanding margins and controlling costs.
  • Tetra Tech's profitability, cash flow generation, and disciplined capital allocation stand out, with strong operational performance and balanced reinvestment and shareholder returns.
  • Despite a 24% margin of safety in my valuation, I recommend waiting for a 30% margin of safety before buying, due to recent stock price declines.

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Investment thesis

Tetra Tech Inc. (TTEK) has a strong balance sheet and resilient revenue base. It delivered double-digit revenue growth over the past decade, driven by strategic acquisitions. It then built on this to expand margins while controlling

This article was written by

1.1K Followers
BSc (Eng), MBA. Self-taught value investor with 2 decades of investing experience. Blogger at i4value.asia. The blog is on value investing through case studies where I analyze and value listed companies in the ASEAN and US regions. I have an exceptional perspective having served as a Board member of a Malaysia listed company for several decades. I have value investing book "Do you really want to master value investing?" on Amazon

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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