TTEC Holdings (TTEC) AI Stock Analysis

• Market Cap: $165.26M
• Dividend Yield: 1.75%
• Average Volume (3M): 307.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -8.21%
• EPS Growth: 91.83%
• Country: US
• Employees: 50,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.22
• Shares Outstanding: 48,463,497
• 10 Day Avg. Volume: 317,040
• 30 Day Avg. Volume: 307,560
• 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: 7.02
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: 5.99
• 1Y Price Target: $4.25
• Price Target Upside: 24.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 40 Underperform
• Price Target: $3.50 ▲(2.64% Upside)

TTEC Holdings' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue, negative margins, and high leverage. Technical indicators also suggest a bearish trend. The valuation is unattractive due to a negative P/E ratio and no dividend yield. While the earnings call provided some positive insights, these were not sufficient to significantly improve the overall score.

Positive Factors

Free Cash Flow Growth

The significant increase in free cash flow enhances TTEC's ability to invest in growth opportunities, reduce debt, and improve financial stability, supporting long-term business resilience.

Adjusted EBITDA Growth

Sustained EBITDA growth and margin improvement indicate effective cost management and operational efficiency, which are crucial for maintaining profitability in a competitive market.

Debt Reduction

Reducing debt levels improves TTEC's financial flexibility and lowers interest expenses, enhancing its capacity to navigate economic uncertainties and invest in strategic initiatives.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in market demand or competitive positioning, which could hinder growth prospects and affect long-term financial performance.

Digital Segment Revenue Challenges

Revenue challenges in the Digital segment highlight difficulties in adapting to market shifts, potentially impacting TTEC's ability to capitalize on digital transformation trends.

High Tax Rate

An increased tax rate reduces net income, affecting profitability and cash flow, which could limit TTEC's ability to reinvest in growth and innovation over the long term.

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 Holdings is facing significant financial challenges, including a steep decline in revenue, negative net profit margin, high leverage, and weak cash flow generation. These factors indicate operational inefficiencies and financial instability.

Income Statement

TTEC Holdings has experienced a significant decline in revenue over the TTM period, with a negative revenue growth rate of -94.7%. The gross profit margin has decreased to 20.66%, and the net profit margin is negative at -1.20%, indicating challenges in maintaining profitability. The EBIT and EBITDA margins are also relatively low at 4.68% and 9.03%, respectively, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 3.58, indicating significant leverage and potential financial risk. The return on equity is negative at -9.62%, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 26.04%, suggesting a lower proportion of equity financing compared to total assets.

Cash Flow

TTEC Holdings has faced a substantial decline in free cash flow growth at -110.43% over the TTM period. The operating cash flow to net income ratio is low at 0.06, indicating weak cash generation relative to net income. The free cash flow to net income ratio is 0.28, showing limited free cash flow relative to net income.

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: 3.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.41 is below the 20-day moving average (MA) of 3.64, below the 50-day MA of 3.86, and below the 200-day MA of 4.20, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 13.04 is Positive, 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
TSSI	68 Neutral	$500.91M	49.65	83.72%	―	328.80%	339.87%
CNXC	68 Neutral	$3.00B	10.07	5.72%	2.79%	3.40%	53.14%
TASK	65 Neutral	$1.60B	26.40	11.52%	―	19.04%	24.49%
UIS	55 Neutral	$283.75M	-3.36	68.24%	―	-1.53%	78.84%
CNDT	54 Neutral	$448.65M	92.21	2.18%	―	-14.36%	-73.74%
TTEC	40 Underperform	$165.26M	―	-9.11%	1.75%	-8.21%	91.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.