TTEC Holdings (TTEC) AI Stock Analysis

• Market Cap: $245.86M
• Dividend Yield: 1.17%
• Average Volume (3M): 373.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: -9.86%
• EPS Growth: -2426.25%
• Country: US
• Employees: 50,000
• Sector: Technology
• Sector Strength: 76
• Industry: Information Technology Services
• EPS (TTM): 0.28
• Shares Outstanding: 47,833,187
• 10 Day Avg. Volume: 404,854
• 30 Day Avg. Volume: 373,397
• PEG Ratio: -0.06
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.73
• Price Target Upside: 11.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

TTEC's overall stock score reflects significant financial challenges, including declining revenue and cash flow issues, balanced by positive technical indicators and strategic advancements in AI and digital solutions. The stock's technical analysis shows strong momentum, though caution is advised due to potential overvaluation and market uncertainties highlighted in the earnings call. The company needs to address its financial weaknesses to support sustained growth.

Positive Factors

Earnings

TTEC Holdings reported Q1/25 revenue of $534.2 million, which was 5% higher than our forecast of $510.8 million and 4% higher than the FactSet consensus forecast of $511.6 million.

Financial Performance

TTEC reported Q1/25 non-GAAP EPS of $0.28, which exceeded our forecast and the FactSet consensus forecast of $0.19.

Strategic Initiatives

Cost optimization efforts from the back half of 2024 are materializing in results.

Negative Factors

Guidance

Guidance reflects a cautious tack toward the second half of 2025 as macro uncertainties are weighing on clients’ decision-making and resulting in smaller contract starts.

Investment Rating

Analyst recommends maintaining a MARKET PERFORM investment rating on TTEC shares due to relatively weak demand, predictability challenges, and valuation considerations.

Revenue Decline

Total revenue declined 7% YOY on a reported basis, declined 6% YOY in constant currency, and declined 6% sequentially on a reported basis.

TTEC Holdings Business Overview & Revenue Model

Company Description

TTEC Holdings, Inc., a customer experience technology and services company, that designs, builds, orchestrates, and delivers digitally enabled customer experiences designed for various brands. It operates in two segments, TTEC Digital and TTEC Engage. The TTEC Digital segments designs, builds, and operates robust digital experiences for clients and their customers through the contextual integration and orchestration of customer relationship management, data, analytics, customer experience as a service technology, and intelligent automation to ensure customer experience (CX) outcomes. The TTEC Engage segment provides digitally enabled CX managed services; delivers omnichannel customer care, tech support, order fulfillment, customer acquisition, growth, and retention services; and delivers digitally enabled back office and industry specific specialty services, such as AI operations, content moderation, and fraud management services. It serves clients in the automotive, communication, financial services, government, healthcare, logistics, media and entertainment, e-tail/retail, technology, transportation, and travel industries with operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Costa Rica, Germany, Greece, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, Singapore, South Africa, Thailand, and the United Kingdom. The company was formerly known as TeleTech Holdings, Inc. and changed its name to TTEC Holdings, Inc. in January 2018. TTEC Holdings, Inc. was founded in 1982 and is headquartered in Englewood, Colorado.

How the Company Makes Money

TTEC makes money primarily through its two business segments. The TTEC Digital segment generates revenue by offering customer experience strategy, technology, and implementation services. This includes consulting services and the design and integration of customer engagement platforms. The TTEC Engage segment earns revenue by providing outsourced customer care, technical support, and sales services to a wide range of industries, including telecommunications, healthcare, retail, and financial services. The company benefits from long-term contracts with its clients, which ensures a stable and recurring revenue stream. Additionally, TTEC has strategic partnerships with technology companies to enhance its service offerings and expand its market reach.

TTEC Holdings Financial Statement Overview

Summary

TTEC Holdings is facing significant financial challenges, marked by declining revenue, profitability, and cash flow. The company's leverage has increased, and its equity position has weakened. Immediate strategic interventions may be necessary to stabilize its financial health and address operational inefficiencies.

Income Statement

TTEC Holdings has experienced a significant decline in revenue and profitability over the latest year, with the total revenue decreasing from $2.46 billion in 2023 to $2.21 billion in 2024, marking a negative growth rate of 10.37%. The net profit margin has also turned negative in 2024, from a modest 0.34% in 2023 to -14.54% in 2024, indicating financial distress. The gross profit margin is substantially high due to reporting, but EBIT and EBITDA margins have deteriorated, reflecting operational challenges.

Balance Sheet

The balance sheet shows a weakening equity position, with stockholders' equity decreasing from $598.6 million in 2023 to $268.1 million in 2024, resulting in a higher debt-to-equity ratio. The equity ratio fell to 15.29% in 2024, indicating a lower proportion of equity financing. High leverage poses a risk, but the company still manages substantial assets totaling $1.75 billion.

Cash Flow

Cash flow analysis reveals a negative free cash flow of $103.99 million in 2024, a decline from $76.93 million in 2023, indicating worsening liquidity. The operating cash flow to net income ratio is negative due to negative net income and operating cash flow, highlighting cash management issues. The company faces challenges in generating positive cash flow, affecting its financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.21B	2.46B	2.44B	2.27B	1.95B
	Gross Profit
2.21B	529.94M	587.19M	568.95M	496.53M
	EBIT
-173.52M	118.02M	168.54M	217.19M	204.69M
	EBITDA
-54.25M	220.32M	301.21M	330.30M	293.94M
	Net Income Common Stockholders
-320.96M	8.43M	103.24M	140.97M	118.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
84.99M	172.75M	153.44M	158.21M	132.91M
	Total Assets
1.75B	2.19B	2.15B	2.00B	1.52B
	Total Debt
1.08B	1.13B	1.06B	899.88M	526.93M
	Net Debt
994.38M	957.33M	911.41M	741.67M	394.01M
	Total Liabilities
1.49B	1.57B	1.52B	1.40B	1.06B
	Stockholders Equity
268.12M	598.63M	559.91M	522.21M	457.76M
Cash Flow		Free Cash Flow
-103.99M	76.93M	53.04M	190.94M	212.15M
	Operating Cash Flow
-58.82M	144.76M	137.05M	251.30M	271.92M
	Investing Cash Flow
477.00K	-67.58M	-226.20M	-541.98M	-112.43M
	Financing Cash Flow
-38.30M	-68.23M	89.04M	330.63M	-112.23M

TTEC Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTEC, the sentiment is Positive. The current price of 5.14 is above the 20-day moving average (MA) of 4.33, above the 50-day MA of 3.92, and above the 200-day MA of 4.49, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 67.06 is Neutral, neither overbought nor oversold. The STOCH value of 81.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTEC.

TTEC Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNXC	74 Outperform	$3.59B	14.08	6.34%	2.31%	21.67%	-17.91%
TSSI	70 Outperform	$386.32M	43.49	137.01%	―	262.87%	873.76%
TASK	67 Neutral	$1.47B	27.87	11.35%	―	14.05%	17.90%
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.76%
UIS	58 Neutral	$381.63M	―	192.24%	―	-1.72%	82.15%
CNDT	58 Neutral	$364.12M	1.65	30.92%	―	-14.38%	―
TTEC	56 Neutral	$245.86M	―	-73.85%	1.17%	-9.86%	-2426.25%

TTEC Holdings Corporate Events

TTEC Holdings Announces Bonus for CFO Amid Take-Private Talks

On February 14, 2025, TTEC Holdings announced a one-time cash bonus of $225,000 for CFO Kenneth R. Wagers III, contingent on his continued employment and a potential take-private transaction. The bonus will be paid in two installments, with provisions for early payment if the transaction closes before the scheduled payout dates. The TTEC Board is evaluating the potential take-private transaction, but there are no guarantees it will be completed.