TTEC Holdings (TTEC) AI Stock Analysis

• Market Cap: $174.95M
• Dividend Yield: 1.75%
• Average Volume (3M): 510.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -8.21%
• EPS Growth: 91.83%
• Country: US
• Employees: 50,000
• Sector: Technology
• Sector Strength: 91
• Industry: Information Technology Services
• EPS (TTM): 0.22
• Shares Outstanding: 48,463,497
• 10 Day Avg. Volume: 786,505
• 30 Day Avg. Volume: 510,765
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 6.63
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: 5.99
• 1Y Price Target: $4.25
• Price Target Upside: 13.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 44 Neutral
• Price Target: $3.50 ▼(-6.42% Downside)

TTEC's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue and profitability, high leverage, and weak cash flow. While the earnings call provided some positive insights, such as free cash flow growth and strategic advancements, the ongoing financial challenges and bearish technical indicators weigh heavily on the score.

Positive Factors

Client Expansion

TTEC has added 15 new enterprise clients, 9 of which have already expanded scope, including 3 that have more than doubled their spend.

Operating Margins

TTEC expanded operating margins in both the digital and engage segments, even with modest year-over-year revenue decline.

Revenue Performance

TTEC Holdings reported Q2/25 revenue of $513.6 million, which was 4% higher than our forecast of $495.9 million and 3% higher than the FactSet consensus forecast of $498.8 million.

Negative Factors

Investment Rating

Analyst is maintaining a MARKET PERFORM investment rating on TTEC shares due to predictability challenges and high business risks.

Market Conditions

Chairman/CEO decides to not pursue acquisition due to market conditions.

Revenue Decline

Total revenue declined 4% year-over-year (YOY) on a reported and constant currency basis and declined 4% sequentially on a reported basis.

TTEC Holdings Business Overview & Revenue Model

Company Description

TTEC Holdings, Inc. is a global provider of customer experience (CX) technology and services, focusing on creating exceptional customer interactions across various channels. The company operates primarily in two segments: Customer Experience as a Service (CXaaS) and Digital Transformation services. TTEC offers a range of solutions including customer care, sales, digital engagement, and technology integration, catering to industries such as healthcare, financial services, and technology.

How the Company Makes Money

TTEC generates revenue through a diversified model that includes service contracts, technology licensing, and consulting fees. Key revenue streams arise from providing outsourced customer care services, which involve staffing and managing customer interactions for clients. Additionally, TTEC earns income from its proprietary technology solutions that enhance customer engagement, as well as from consulting services that assist organizations in transforming their customer experience strategies. Significant partnerships with major corporations across various sectors contribute to its earnings, as these relationships often lead to long-term contracts and recurring revenue opportunities.

TTEC Holdings Financial Statement Overview

Summary

TTEC's financial performance is under pressure, with negative net income and EBIT, declining gross profit margins, and revenue decreases. The balance sheet shows high debt levels, and cash flow analysis reveals liquidity challenges. These factors indicate significant financial difficulties, warranting a below-average score.

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	2.14B	2.21B	2.46B	2.44B	2.27B	1.95B
Gross Profit	443.14M	471.72M	529.94M	587.19M	568.95M	496.53M
EBITDA	193.59M	-54.25M	220.32M	301.21M	330.30M	293.94M
Net Income	-25.72M	-320.96M	8.43M	103.24M	140.97M	118.65M
Balance Sheet
Total Assets	1.07B	1.75B	2.19B	2.15B	2.00B	1.52B
Cash, Cash Equivalents and Short-Term Investments	82.56M	84.99M	172.75M	153.44M	158.21M	132.91M
Total Debt	994.56M	1.08B	1.13B	1.06B	905.75M	537.88M
Total Liabilities	1.40B	1.49B	1.57B	1.52B	1.40B	1.01B
Stockholders Equity	277.89M	250.25M	598.63M	559.91M	522.21M	444.70M
Cash Flow
Free Cash Flow	6.12M	-103.99M	76.93M	53.04M	190.94M	212.15M
Operating Cash Flow	21.84M	-58.82M	144.76M	137.05M	251.30M	271.92M
Investing Cash Flow	13.74M	477.00K	-67.58M	-226.20M	-541.98M	-112.43M
Financing Cash Flow	-59.63M	-38.30M	-68.23M	89.04M	319.64M	-112.23M

TTEC Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 3.74 is below the 20-day moving average (MA) of 4.07, below the 50-day MA of 4.68, and below the 200-day MA of 4.39, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 84.54 is Negative, 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
CNXC	70 Outperform	$3.04B	13.23	5.59%	2.76%	11.31%	-16.02%
TASK	70 Outperform	$1.55B	25.60	12.49%	―	19.04%	24.49%
TSSI	66 Neutral	$409.38M	42.85	122.80%	―	328.80%	339.87%
Sector *	57 Neutral	HK$14.83B	9.08	-0.60%	4.27%	7.14%	-38.21%
UIS	52 Neutral	$280.89M	―	192.24%	―	-1.53%	78.84%
CNDT	48 Neutral	$383.88M	84.42	2.21%	―	-14.36%	-73.74%
TTEC	44 Neutral	$174.95M	―	-9.11%	1.75%	-8.21%	91.83%

TTEC Holdings Corporate Events

TTEC Holdings CEO Withdraws Acquisition Proposal

On August 1, 2025, TTEC Holdings announced that its founder and CEO, Kenneth Tuchman, has decided not to pursue his previous proposal to acquire the company’s outstanding shares due to market conditions. The Board of Directors expressed confidence in TTEC’s continued success as a public company, emphasizing its commitment to thriving in the complex CX ecosystem.

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.