TTEC Holdings, Inc. (TTEC): A Bull Case Theory

We came across a bullish thesis on TTEC Holdings, Inc. (TTEC) on Reddit by burnoutstory. In this article, we will summarize the bulls’ thesis on TTEC. TTEC Holdings, Inc. (TTEC)’s share was trading at $5.12 as of 27^th May. TTEC’s forward P/E was 4.74 according to Yahoo Finance.

TTEC Holdings appears to present an intriguing investment opportunity, primarily driven by a combination of strategic operational adjustments, potential margin expansion, and a take-private offer that underscores underlying value. At its current market capitalization of approximately $250 million (~$5.20/share), the company is trading at a discount relative to both recent operating metrics and an outstanding offer by the founder to acquire the company at $6.85/share—a 30% premium to market price.

While the timeline of this offer has been unusually extended, especially when compared to peer TaskUs, the existence of the proposal alone suggests the founder perceives substantial undervaluation, further supported by his anticipated post-transaction ownership stake of roughly 60%. TTEC’s core business comprises two segments: Engage, focused on customer service outsourcing and accounting for the majority of revenue, and Digital, which delivers CX technology consulting. Though the company experienced a 10% year-over-year revenue decline and a compressed adjusted FCF yield of 2.7%, recent quarterly results suggest margin recovery, with 1Q25 margins rebounding to 5% from just 1% a year earlier.

Strategic investments in offshore operations and AI-driven efficiencies offer potential for further improvement, despite some regulatory limitations on outsourcing in key sectors like healthcare and finance. Risks remain, particularly around TTEC’s $1B debt load, uncertain efficacy of offshore expansion, and broader macroeconomic headwinds that could impact top-line growth. Nonetheless, the possibility of a rebound in margins and continued optimization efforts may support a valuation between $350M and $400M, even if the privatization bid does not proceed, making TTEC a potentially undervalued equity at current levels.

Previously, we covered TTEC Holdings (TTEC) in Feb 2025, where we summarized a bullish thesis emphasizing its significant undervaluation despite $2.26 billion in revenue. The author highlighted founder Ken Tuchman’s $6.85 per share take-private offer, representing a 96% premium. Despite AI fears and industry headwinds, TTEC’s growing AI and SaaS segments and strong operating income suggest substantial intrinsic value beyond the offer. The stock is up by 49.27% since then.

TTEC Holdings, Inc. (TTEC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held TTEC at the end of the first quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of TTEC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TTEC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.