TTEC Holdings, Inc. has appointed Kenneth “Kenny” R. Wagers III as its new Chief Financial Officer, effective March 1, 2024. Wagers brings with him a wealth of experience in finance, operations, and supply chain management from his tenure at multinational organizations such as UPS, XPO Logistics, and Amazon.
TTEC's Chairman and CEO, Ken Tuchman, expressed enthusiasm about Wagers joining the team, stating, "It’s a dynamic time in the customer experience technology and services market and Kenny brings a unique combination of financial acumen and operational expertise." Tuchman also highlighted Wagers' track record in spearheading operational transformations and cost optimization initiatives.
In light of this appointment, Tuchman emphasized the company's strategic outlook, noting, "I’m excited to have Kenny work with our entire Executive Leadership Team to accelerate growth and profitability across our business segments."
TTEC Holdings, Inc. (NASDAQ: TTEC) is a global CX technology and services innovator, offering AI-enabled digital CX solutions to iconic and disruptive brands. Its solutions encompass omnichannel contact center technology, conversational messaging, CRM, automation, and analytics, as well as digital customer engagement, acquisition, content moderation, fraud prevention, and data annotation solutions.
The company's latest 8-K submission can be accessed here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,509 | $1,644 | $1,949 | $2,273 | $2,444 | $2,495 |
| Operating Margins | 6% | 8% | 11% | 10% | 7% | 6% |
| Net Margins | 2% | 5% | 6% | 6% | 4% | 2% |
| Net Income (M) | $36 | $77 | $119 | $141 | $103 | $41 |
| Net Interest Expense (M) | $29 | $19 | $17 | $12 | $36 | $72 |
| Depreciation & Amort. (M) | $58 | $58 | $63 | $64 | $64 | $108 |
| Diluted Shares (M) | 46 | 47 | 47 | 47 | 47 | 47 |
| Earnings Per Share | $0.77 | $1.65 | $2.52 | $2.97 | $2.18 | $0.86 |
| EPS Growth | n/a | 114.29% | 52.73% | 17.86% | -26.6% | -60.55% |
| Avg. Price | $28.33 | $37.33 | $45.76 | $92.06 | $72.84 | $19.48 |
| P/E Ratio | 36.32 | 22.49 | 18.02 | 30.58 | 33.26 | 22.65 |
| Free Cash Flow (M) | $125 | $177 | $212 | $191 | $53 | $50 |
| CAPEX (M) | $43 | $61 | $60 | $60 | $84 | $81 |
| Current Ratio | 2.24 | 1.51 | 1.66 | 1.57 | 1.82 | 1.57 |
Based on the growth factors, TTEC's rapid revenue growth at a rate of 9.6% and increasing capital expenditures of 9.2% are positive indicators of the company's potential for expansion. Additionally, the growth in earnings per share at an annualized rate of 1.9% over the last 6 years showcases a steady financial performance. However, the operating margins averaging at 8.0% over the last 6 years are in line with the industry average, indicating a lack of strong competitive advantage in terms of efficiency. Furthermore, the PEG ratio of 1.94 suggests that the market may be overvaluing the firm's growth potential, which raises concerns about the stock being potentially overpriced.
In terms of value factors, TTEC's free cash flows have shown a decent average of $134.78 million over the last 5 years. However, the compounded average growth rate of -19.7% and a high year-on-year growth variability coefficient of 1010.79% indicate significant fluctuations and inconsistency in the company's cash flow generation.
Taking these factors into consideration, it can be argued that TTEC stock may be fairly valued at $19.08. The positive growth indicators are counterbalanced by concerns regarding operating margins and the potential overvaluation of the stock by the market.
