NCR CORPORATION (NCR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NCR - US62886E1082 - Common Stock
27.08 USD
+0.85 (+3.24%)
27.12 USD
+0.04 (+0.15%)
We assign a fundamental rating of 4 out of 10 to NCR. NCR was compared to 281 industry peers in the Software industry. NCR has a medium profitability rating, but doesn't score so well on its financial health evaluation. NCR may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year NCR was profitable.
In the past year NCR had a positive cash flow from operations.
In multiple years NCR reported negative net income over the last 5 years.
NCR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.58%, NCR is in the better half of the industry, outperforming 75.27% of the companies in the same industry.
The Return On Equity of NCR (3.55%) is better than 79.21% of its industry peers.
The Return On Invested Capital of NCR (6.51%) is better than 84.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NCR is significantly below the industry average of 12.04%.
The last Return On Invested Capital (6.51%) for NCR is above the 3 year average (4.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 3.55% | ||
| ROIC | 6.51% |
ROA(3y)-0.08%
ROA(5y)0.61%
ROE(3y)-0.18%
ROE(5y)3.77%
ROIC(3y)4.72%
ROIC(5y)5.87%
1.3 Margins
Looking at the Profit Margin, with a value of 0.83%, NCR is in the better half of the industry, outperforming 75.27% of the companies in the same industry.
NCR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.04%, NCR belongs to the top of the industry, outperforming 82.08% of the companies in the same industry.
In the last couple of years the Operating Margin of NCR has declined.
The Gross Margin of NCR (25.20%) is worse than 84.23% of its industry peers.
NCR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.04% | ||
| PM (TTM) | 0.83% | ||
| GM | 25.2% |
OM growth 3Y-7.58%
OM growth 5Y-7.6%
PM growth 3Y-55.96%
PM growth 5Y-21.55%
GM growth 3Y-5.17%
GM growth 5Y-3.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NCR is destroying value.
NCR has more shares outstanding than it did 1 year ago.
The debt/assets ratio for NCR is higher compared to a year ago.
2.2 Solvency
NCR has an Altman-Z score of 1.31. This is a bad value and indicates that NCR is not financially healthy and even has some risk of bankruptcy.
NCR's Altman-Z score of 1.31 is in line compared to the rest of the industry. NCR outperforms 45.52% of its industry peers.
The Debt to FCF ratio of NCR is 12.32, which is on the high side as it means it would take NCR, 12.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.32, NCR is in line with its industry, outperforming 55.91% of the companies in the same industry.
A Debt/Equity ratio of 2.90 is on the high side and indicates that NCR has dependencies on debt financing.
NCR has a worse Debt to Equity ratio (2.90) than 84.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 12.32 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.73
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.11 indicates that NCR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, NCR is not doing good in the industry: 72.04% of the companies in the same industry are doing better.
A Quick Ratio of 0.84 indicates that NCR may have some problems paying its short term obligations.
NCR's Quick ratio of 0.84 is on the low side compared to the rest of the industry. NCR is outperformed by 81.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
NCR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.10%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.91% on average over the past years.
NCR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
Measured over the past years, NCR shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
EPS 1Y (TTM)24.1%
EPS 3Y-2.3%
EPS 5Y-3.91%
EPS Q2Q%32.39%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y4.29%
Revenue growth 5Y3.78%
Sales Q2Q%-0.55%
3.2 Future
The Earnings Per Share is expected to grow by 21.06% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.29% on average over the next years.
EPS Next Y33.26%
EPS Next 2Y21.45%
EPS Next 3Y21.06%
EPS Next 5YN/A
Revenue Next Year1.74%
Revenue Next 2Y2.97%
Revenue Next 3Y3.29%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NCR is valuated reasonably with a Price/Earnings ratio of 8.76.
Compared to the rest of the industry, the Price/Earnings ratio of NCR indicates a rather cheap valuation: NCR is cheaper than 94.62% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. NCR is valued rather cheaply when compared to this.
NCR is valuated cheaply with a Price/Forward Earnings ratio of 6.98.
94.62% of the companies in the same industry are more expensive than NCR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.46. NCR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
NCR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NCR is cheaper than 96.77% of the companies in the same industry.
95.34% of the companies in the same industry are more expensive than NCR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.67 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
NCR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NCR's earnings are expected to grow with 21.06% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y21.45%
EPS Next 3Y21.06%
5. Dividend
5.1 Amount
No dividends for NCR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.08
+0.85 (+3.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.83%
Inst Owner Change2.48%
Ins Owners3.05%
Ins Owner Change0%
Market Cap3.82B
Revenue(TTM)7.86B
Net Income(TTM)65.00M
Analysts78.18
Price Target33.66 (24.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP23.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.44%
Min EPS beat(2)13.62%
Max EPS beat(2)39.26%
EPS beat(4)3
Avg EPS beat(4)12.93%
Min EPS beat(4)-3.6%
Max EPS beat(4)39.26%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)1.67%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.67%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.87%
PT rev (3m)4.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.45%
EPS NY rev (1m)0%
EPS NY rev (3m)8.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 6.98 | ||
| P/S | 0.49 | ||
| P/FCF | 8.67 | ||
| P/OCF | 4.5 | ||
| P/B | 2.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.55 |
EPS(TTM)3.09
EY11.41%
EPS(NY)3.88
Fwd EY14.33%
FCF(TTM)3.12
FCFY11.53%
OCF(TTM)6.01
OCFY22.2%
SpS55.77
BVpS12.99
TBVpS-26.81
PEG (NY)0.26
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 3.55% | ||
| ROCE | 8.23% | ||
| ROIC | 6.51% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 22.74% | ||
| OM | 9.04% | ||
| PM (TTM) | 0.83% | ||
| GM | 25.2% | ||
| FCFM | 5.6% |
ROA(3y)-0.08%
ROA(5y)0.61%
ROE(3y)-0.18%
ROE(5y)3.77%
ROIC(3y)4.72%
ROIC(5y)5.87%
ROICexc(3y)4.99%
ROICexc(5y)6.3%
ROICexgc(3y)14.88%
ROICexgc(5y)17.62%
ROCE(3y)5.97%
ROCE(5y)7.43%
ROICexgc growth 3Y-4.9%
ROICexgc growth 5Y-9.88%
ROICexc growth 3Y-13.74%
ROICexc growth 5Y-12.55%
OM growth 3Y-7.58%
OM growth 5Y-7.6%
PM growth 3Y-55.96%
PM growth 5Y-21.55%
GM growth 3Y-5.17%
GM growth 5Y-3.61%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 12.32 | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | 65.96% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.83% | ||
| Profit Quality | 676.92% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.31 |
F-Score7
WACC8.89%
ROIC/WACC0.73
Cap/Depr(3y)67.12%
Cap/Depr(5y)79%
Cap/Sales(3y)4.64%
Cap/Sales(5y)4.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.1%
EPS 3Y-2.3%
EPS 5Y-3.91%
EPS Q2Q%32.39%
EPS Next Y33.26%
EPS Next 2Y21.45%
EPS Next 3Y21.06%
EPS Next 5YN/A
Revenue 1Y (TTM)0.77%
Revenue growth 3Y4.29%
Revenue growth 5Y3.78%
Sales Q2Q%-0.55%
Revenue Next Year1.74%
Revenue Next 2Y2.97%
Revenue Next 3Y3.29%
Revenue Next 5YN/A
EBIT growth 1Y41.43%
EBIT growth 3Y-3.61%
EBIT growth 5Y-4.11%
EBIT Next Year66.78%
EBIT Next 3Y15.86%
EBIT Next 5YN/A
FCF growth 1Y25%
FCF growth 3Y-43.35%
FCF growth 5Y-35.65%
OCF growth 1Y37.72%
OCF growth 3Y-10.92%
OCF growth 5Y-10.58%
NCR CORPORATION / NCR FAQ
What is the fundamental rating for NCR stock?
ChartMill assigns a fundamental rating of 4 / 10 to NCR.
What is the valuation status for NCR stock?
ChartMill assigns a valuation rating of 9 / 10 to NCR CORPORATION (NCR). This can be considered as Undervalued.
What is the profitability of NCR stock?
NCR CORPORATION (NCR) has a profitability rating of 5 / 10.
What is the financial health of NCR CORPORATION (NCR) stock?
The financial health rating of NCR CORPORATION (NCR) is 1 / 10.
Is the dividend of NCR CORPORATION sustainable?
The dividend rating of NCR CORPORATION (NCR) is 0 / 10 and the dividend payout ratio is 23.08%.