TTEC Holdings (TTEC) AI Stock Analysis

• Market Cap: $172.41M
• Dividend Yield: 15.55%
• Average Volume (3M): 332.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -10.32%
• EPS Growth: -3860.81%
• Country: US
• Employees: 60,000
• Sector: Technology
• Sector Strength: 45
• Industry: Software
• EPS (TTM): -6.75
• Shares Outstanding: 47,757,847
• 10 Day Avg. Volume: 509,586
• 30 Day Avg. Volume: 332,445
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.08
• Price to Cash Flow (P/CF): -39.70
• P/FCF Ratio: 0.00
• 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: $3.50
• Price Target Upside: 3.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

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 Business Overview & Revenue Model

Company Description

TTEC 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 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: Negative
• Last Price: 3.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	80 Outperform	$8.72B	17.64	22.15%	1.23%	6.46%	-16.94%
EXLS	79 Outperform	$7.48B	38.06	21.80%	―	12.74%	9.92%
ACN	76 Outperform	$205.03B	27.48	27.10%	1.69%	2.75%	10.53%
WNS	72 Outperform	$2.73B	19.80	16.64%	―	1.07%	-13.39%
CNXC	71 Outperform	$2.94B	12.30	5.89%	2.78%	35.20%	-35.86%
Sector *	58 Neutral	$21.35B	9.96	-19.72%	2.38%	5.03%	-22.83%
TTEC	45 Neutral	$172.41M	―	-75.62%	15.55%	-10.32%	-3860.81%

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.