Stock fact sheet · data as of
Tetra Tech, Inc. (TTEK): fair value, margin of safety and Wheel Score
Industrials · Engineering & Construction · United States · Quality / Blue-Chip
Is TTEK undervalued?
At 33.61 (close of 16 Oct 2026), TTEK trades 16% over the GLS average fair value of 28.92. 3 of the 9 models land above the price and 6 below. A negative margin of safety costs Value points in the Wheel Score (6 of 25 here) - the models see no discount, which does not make the business a poor one, only the price a full one.
The 9 models disagree widely: DDM gives 4.03 while Payback Time gives 57.29. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files TTEK under Quality / Blue-Chip: a high moat score and a high health score together.
Nine valuation models for TTEK
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 29.41 | -13% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 16.52 | -51% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 38.08 | +13% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 12.29 | -63% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 28.72 | -15% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 55.13 | +64% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 57.29 | +70% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 4.03 | -88% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 18.77 | -44% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -3.43 | -110% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 37.00 | +10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health TTEK scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.2 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are moderate - ROIC 9.0%, ROE 13.9%, ROA 5.8% - with debt at 0.55 times equity and a free-cash-flow yield of 6.4%.
The dividend yield is 0.82% with a payout ratio of 16% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Commercial/International Services Group 55%, Government Services Group 45% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 9.0% |
|---|---|---|---|
| GLS Moat | 8.2 / 10 | ROE | 13.9% |
| Debt / equity | 0.55 | ROA | 5.8% |
| Free-cash-flow yield | 6.4% | Payout ratio | 16% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 5 / 10 |
Wheel Score 76: Good
TTEK scores 76 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 6/25), Piotroski health (18/20), the GLS moat (12/15), the option premium on offer (20/20) and how easily the stock trades (20/20). Value (6/25) is the part holding the score back.
Implied volatility is 43% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 19,792 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.3M shares a day on a market cap of $8.6B, with a beta of 0.95; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 6 / 25 | -16% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 12 / 15 | moat 8.2/10 | |
| Premium | 20 / 20 | implied volatility 43% | |
| Stability | 20 / 20 | 2.3M shares/day, $8.6B cap, beta 0.95 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 11 Nov 2026 (after the close), 26 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Engineering & Construction
The 12 companies below are the closest to Tetra Tech, Inc. by market cap within the Engineering & Construction industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DY Dycom Industries, Inc. | 257.78 | 361.57 | +29% | 81Prime | $7.8B |
| ACM Aecom | 59.09 | 51.70 | -14% | 64Fair | $7.6B |
| STN Stantec Inc. | 67.11 | 98.56 | +32% | 86Prime | $7.5B |
| IESC IES Holdings, Inc. | 262.44 | 218.37 | -20% | 62Fair | $10.6B |
| FLR Fluor Corporation | 47.67 | 8.01 | -495% | 45Weak | $6.4B |
| LGN Legence Corp. Class A Common stock | 45.30 | 49.16 | +8% | 45Weak | $6.3B |
| ECG Everus Construction Group, Inc. | 111.66 | 117.18 | +5% | 69Good | $5.7B |
| STRL Sterling Infrastructure, Inc. | 453.07 | 439.81 | -3% | 67Good | $13.9B |
| AGX Argan, Inc. | 367.16 | 392.92 | +7% | 69Good | $5.2B |
| MTZ MasTec, Inc. | 191.63 | 172.57 | -11% | 68Good | $15.4B |
| GVA Granite Construction Incorporated | 108.78 | 92.37 | -18% | 45Weak | $4.8B |
| KBR KBR, Inc. | 36.44 | 65.77 | +45% | 84Prime | $4.6B |
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Start free See the Sunday ScanQuestions about TTEK
Is TTEK undervalued right now?
No: at 33.61 the stock trades 16% above the GLS average fair value of 28.92 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of TTEK and what does it mean?
TTEK scores 76 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TTEK?
28.92 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Tetra Tech, Inc. report earnings next?
The next earnings report is due on 11 Nov 2026 (after the close), 26 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TTEK have listed options, and how liquid are they?
Yes. The nightly snapshot found 92 listed contracts with 19,792 open interest across all expiries and implied volatility of 43% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.