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TTEC Holdings (TTEC)
NASDAQ:TTEC

TTEC Holdings (TTEC) AI Stock Analysis

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TTEC Holdings

(NASDAQ:TTEC)

45Neutral
TTEC Holdings is currently facing substantial challenges, with declining financial performance and bearish technical indicators. Despite efforts to improve profitability in 2025, the company's high leverage and cash flow issues present significant risks. The high dividend yield offers some appeal, but sustainability is uncertain given the financial strain. Investors should be cautious and closely monitor the company's strategic initiatives and future earnings performance.
Positive Factors
Growth in Digital Business
Management is confident that the Digital business will return to growth in 2025 fueled by growth in both professional and recurring services.
Strategic Focus and Diversification
Management is intently focused on further diversifying the business, increasing its offshore footprint, and managing costs, with recent enterprise wins across sectors like e-commerce, retail, media, and property and casualty insurance.
Negative Factors
Financial Performance
Total revenue declined 12% year-over-year on a reported and constant currency basis and decreased 1% sequentially on a reported basis.

TTEC Holdings (TTEC) vs. S&P 500 (SPY)

TTEC Holdings Business Overview & Revenue Model

Company DescriptionTTEC Holdings, Inc. is a global customer experience technology and services company. It operates in two main segments: TTEC Digital and TTEC Engage. TTEC Digital provides consulting and technology services that help businesses design and build engaging customer experiences across various channels. TTEC Engage offers customer care, sales, and retention services through its global network of contact centers. The company focuses on delivering digital customer experiences and leveraging data analytics to enhance customer interactions and outcomes.
How the Company Makes MoneyTTEC 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
45
Neutral
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
50
Neutral
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
40
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.21B2.46B2.44B2.27B1.95B
Gross Profit
2.21B529.94M587.19M568.95M496.53M
EBIT
-173.52M118.02M168.54M217.19M204.69M
EBITDA
-54.25M220.32M301.21M330.30M293.94M
Net Income Common Stockholders
-320.96M8.43M103.24M140.97M118.65M
Balance SheetCash, Cash Equivalents and Short-Term Investments
84.99M172.75M153.44M158.21M132.91M
Total Assets
1.75B2.19B2.15B2.00B1.52B
Total Debt
1.08B1.13B1.06B899.88M526.93M
Net Debt
994.38M957.33M911.41M741.67M394.01M
Total Liabilities
1.49B1.57B1.52B1.40B1.06B
Stockholders Equity
268.12M598.63M559.91M522.21M457.76M
Cash FlowFree Cash Flow
-103.99M76.93M53.04M190.94M212.15M
Operating Cash Flow
-58.82M144.76M137.05M251.30M271.92M
Investing Cash Flow
477.00K-67.58M-226.20M-541.98M-112.43M
Financing Cash Flow
-38.30M-68.23M89.04M330.63M-112.23M

TTEC Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.38
Price Trends
50DMA
3.84
Negative
100DMA
4.47
Negative
200DMA
5.09
Negative
Market Momentum
MACD
-0.09
Negative
RSI
39.29
Neutral
STOCH
45.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTEC, the sentiment is Negative. The current price of 3.38 is below the 20-day moving average (MA) of 3.59, below the 50-day MA of 3.84, and below the 200-day MA of 5.09, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 39.29 is Neutral, neither overbought nor oversold. The STOCH value of 45.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTEC.

TTEC Holdings Risk Analysis

TTEC Holdings disclosed 48 risk factors in its most recent earnings report. TTEC Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TTEC Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GG
80
Outperform
$8.72B17.6422.15%1.23%6.46%-16.94%
79
Outperform
$7.48B38.0621.80%12.74%9.92%
ACACN
76
Outperform
$205.03B27.4827.10%1.69%2.75%10.53%
WNWNS
72
Outperform
$2.73B19.8016.64%1.07%-13.39%
71
Outperform
$2.94B12.305.89%2.78%35.20%-35.86%
58
Neutral
$21.35B9.96-19.72%2.38%5.03%-22.83%
45
Neutral
$172.41M-75.62%15.55%-10.32%-3860.81%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TTEC
TTEC Holdings
3.38
-7.43
-68.73%
ACN
Accenture
324.33
-48.18
-12.93%
EXLS
Exlservice Holdings
46.12
15.11
48.73%
G
Genpact
49.10
15.82
47.54%
WNS
WNS
58.64
2.09
3.70%
CNXC
Concentrix
44.28
-17.57
-28.41%

TTEC Holdings Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -7.40% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture for TTEC Holdings. While the company reported successful AI integration and new client acquisitions, it faced significant revenue declines and cash flow challenges in 2024. The outlook for 2025 is cautiously optimistic with expected profitability improvements, yet revenue pressures from client-specific issues remain a concern.
Highlights
AI Adoption and Innovation
TTEC Holdings successfully infused AI into over 150 digital projects and three-quarters of Engage associates' operations, enhancing service quality and operational efficiency.
New Client Acquisitions and Expansion
In 2024, TTEC Engage exceeded its new client acquisition goal with 15 new enterprise client wins and TTEC Digital signed 55 new clients, providing significant potential for future expansion.
Improved Profitability Outlook for 2025
The company expects adjusted EBITDA to increase by 11.2% and non-GAAP operating income to rise by 20% in 2025, demonstrating improved operational efficiency.
Expansion of Recurring Managed Services
TTEC Digital's recurring managed services grew by 10.2% in Q4 2024 and are expected to continue growing by approximately 5% in 2025.
Lowlights
Revenue Decline in 2024
Consolidated revenue for 2024 decreased by 10.4% to $2.21 billion compared to the previous year, with notable declines in both Engage and Digital segments.
Cash Flow and Debt Concerns
Cash flow from operations was a negative $59 million in 2024, and net debt increased by $66 million, impacted by the discontinuation of the accounts receivable factoring facility.
Challenges with Healthcare and Financial Services Clients
Revenue from healthcare volumes decreased, and the discontinuation of a large financial services client's line of business contributed to revenue decline.
Margin Pressure in Engage Segment
Engage segment's operating income margin fell from 7% in 2023 to 4.9% in 2024, impacted by headwinds in the public sector and healthcare.
Company Guidance
During the TTEC Holdings, Inc. earnings call for the fourth quarter and full year 2024, the company provided guidance for 2025 with several key metrics. They forecasted a GAAP revenue of $2.04 billion, a 7.6% decrease from the previous year, and projected adjusted EBITDA of $225 million, an 11.2% increase, representing 11% of revenue. Non-GAAP operating income was expected to be $164 million, marking a 20% increase, with non-GAAP earnings per share anticipated to grow by 52.5% to $1.08. The company highlighted a focus on profit optimization, with efforts in geographic expansion and operational efficiency, and predicted a more pronounced profitability improvement in the second half of 2025. Capital expenditures were projected to be between 2.2% and 2.4% of revenue, with a full-year effective tax rate ranging from 38% to 42%.

TTEC Holdings Corporate Events

Delistings and Listing ChangesExecutive/Board Changes
TTEC Holdings Announces Bonus for CFO Amid Take-Private Talks
Neutral
Feb 14, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.