TTEC Holdings (TTEC) AI Stock Analysis

• Market Cap: $252.08M
• Dividend Yield: 1.14%
• Average Volume (3M): 278.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -9.86%
• EPS Growth: -2426.25%
• Country: US
• Employees: 50,000
• Sector: Technology
• Sector Strength: 78
• Industry: Information Technology Services
• EPS (TTM): 0.28
• Shares Outstanding: 47,833,187
• 10 Day Avg. Volume: 194,112
• 30 Day Avg. Volume: 278,755
• PEG Ratio: -0.74
• Price to Book (P/B): 3.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.21
• Enterprise Value/Market Cap: 11.86
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 6.38
• Enterprise Value/Ebitda: -14.15
• 1Y Price Target: $6.85
• Price Target Upside: 29.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: $5.00 ▼(-5.12%Downside)

TTEC's overall score reflects significant financial challenges, including poor profitability and cash flow issues, offset partially by positive technical indicators and strategic advancements in AI and digital solutions. Governance improvements and a modest dividend yield add some appeal, but the company's financial health remains a primary concern.

Positive Factors

Business 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.

Cost Optimization

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

Earnings

TTEC reported first-quarter results that beat top- and bottom-line consensus estimates.

Negative Factors

Macroeconomic Uncertainty

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.

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.

Revenue Shortfall

TTEC's Q4 results once again underscore what's been a difficult year for the company, with results falling somewhat short of Q4 consensus in revenue and EPS.

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 main business segments: TTEC Digital and TTEC Engage. TTEC Digital generates revenue by offering consulting, technology, and analytics services that enable businesses to transform their customer experience operations. This includes selling proprietary software solutions and providing implementation and management services for cloud-based platforms. TTEC Engage earns revenue by delivering outsourced customer experience services, such as customer care, sales support, and back-office processing. The company enters into contracts with clients across industries, charging fees based on service delivery, which can be structured as time-and-materials, fixed-price, or outcome-based agreements. Additionally, strategic partnerships with technology providers and the adoption of innovative engagement models contribute to TTEC's revenue streams.

TTEC Holdings Financial Statement Overview

Summary

TTEC's financial performance is struggling, with negative net income and EBIT, declining gross profit margin, and decreasing revenue. The high debt-to-equity ratio and negative cash flow further highlight financial instability and liquidity challenges.

Income Statement

TTEC's income statement reveals a challenging financial period. The TTM data shows negative net income and EBIT, indicating operational struggles. The gross profit margin has decreased over recent periods, and revenue has also declined compared to the previous periods, signaling potential market pressures or operational inefficiencies. These factors result in a below-average score, reflecting the need for strategic improvement to return to profitability.

Balance Sheet

The balance sheet exhibits a high debt-to-equity ratio, driven by significant total debt levels relative to stockholders' equity. This financial leverage poses a risk in terms of financial stability. However, the equity ratio remains reasonable, indicating that equity still forms a significant portion of assets. Stability is a concern, but not critical, resulting in an average score.

Cash Flow

Cash flow analysis highlights negative operating cash flow in the TTM period, with free cash flow also negative, indicating liquidity challenges. The decreasing free cash flow growth rate suggests difficulties in generating cash from operations, affecting the company's ability to invest or pay down debt. These issues warrant a below-average score, showing a need for cash flow improvement.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.17B	2.21B	2.46B	2.44B	2.27B	1.95B
	Gross Profit
468.58M	471.72M	529.94M	587.19M	568.95M	496.53M
	EBIT
-172.04M	-173.52M	118.02M	168.54M	217.19M	204.69M
	EBITDA
-48.24M	-54.25M	220.32M	301.21M	330.30M	293.94M
	Net Income Common Stockholders
-317.28M	-320.96M	8.43M	103.24M	140.97M	118.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
85.14M	84.99M	172.75M	153.44M	158.21M	132.91M
	Total Assets
1.73B	1.75B	2.19B	2.15B	2.00B	1.52B
	Total Debt
1.06B	1.08B	1.13B	1.06B	899.88M	526.93M
	Net Debt
976.22M	994.38M	957.33M	911.41M	741.67M	394.01M
	Total Liabilities
1.44B	1.49B	1.57B	1.52B	1.40B	1.06B
	Stockholders Equity
263.97M	250.25M	598.63M	559.91M	522.21M	457.76M
Cash Flow		Free Cash Flow
-58.70M	-103.99M	76.93M	53.04M	190.94M	212.15M
	Operating Cash Flow
-21.60M	-58.82M	144.76M	137.05M	251.30M	271.92M
	Investing Cash Flow
8.65M	477.00K	-67.58M	-226.20M	-541.98M	-112.43M
	Financing Cash Flow
-5.54M	-38.30M	-68.23M	89.04M	330.63M	-112.23M

TTEC Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 5.27 is above the 20-day moving average (MA) of 5.11, above the 50-day MA of 4.52, and above the 200-day MA of 4.49, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 60.05 is Neutral, neither overbought nor oversold. The STOCH value of 82.76 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
TASK	81 Outperform	$1.48B	28.07	11.35%	―	14.05%	17.90%
CNXC	76 Outperform	$3.53B	13.85	6.34%	2.41%	21.67%	-17.91%
TSSI	69 Neutral	$460.13M	51.80	137.01%	―	262.87%	873.76%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
CNDT	57 Neutral	$432.09M	1.95	30.92%	―	-14.38%	―
TTEC	54 Neutral	$252.08M	―	-73.85%	1.14%	-9.86%	-2426.25%
UIS	51 Neutral	$314.83M	―	192.24%	―	-1.72%	82.15%

TTEC Holdings Corporate Events

TTEC Holdings Conducts 2025 Annual Stockholders Meeting

On May 22, 2025, TTEC Holdings, Inc. conducted its 2025 Annual Meeting of Stockholders where stockholders voted to elect seven directors and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. The election of directors and the ratification of the accounting firm are expected to strengthen TTEC’s governance and financial oversight, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (TTEC) stock is a Buy with a $6.85 price target. To see the full list of analyst forecasts on TTEC Holdings stock, see the TTEC Stock Forecast page.