NCR CORPORATION (NCR) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:NCR • US62886E1082

27.08 USD
+0.85 (+3.24%)
At close: Oct 16, 2023
27.12 USD
+0.04 (+0.15%)
After Hours: 10/16/2023, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to NCR. NCR was compared to 277 industry peers in the Software industry. While NCR is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on NCR.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • NCR had positive earnings in the past year.
  • NCR had a positive operating cash flow in the past year.
NCR Yearly Net Income VS EBIT VS OCF VS FCFNCR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M 800M 1B

1.2 Ratios

  • The Return On Assets of NCR (0.58%) is better than 75.27% of its industry peers.
  • The Return On Equity of NCR (3.55%) is better than 79.21% of its industry peers.
  • With an excellent Return On Invested Capital value of 6.51%, NCR belongs to the best of the industry, outperforming 84.95% of the companies in the same industry.
  • NCR had an Average Return On Invested Capital over the past 3 years of 4.72%. This is significantly below the industry average of 10.82%.
  • 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 RankSector 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%
NCR Yearly ROA, ROE, ROICNCR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20 30

1.3 Margins

  • NCR's Profit Margin of 0.83% is fine compared to the rest of the industry. NCR outperforms 75.27% of its industry peers.
  • In the last couple of years the Profit Margin of NCR has declined.
  • NCR has a better Operating Margin (9.04%) than 82.08% of its industry peers.
  • NCR's Operating Margin has declined in the last couple of years.
  • 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 RankSector 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%
NCR Yearly Profit, Operating, Gross MarginsNCR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 20

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • NCR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, NCR has more shares outstanding
  • The debt/assets ratio for NCR is higher compared to a year ago.
NCR Yearly Shares OutstandingNCR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
NCR Yearly Total Debt VS Total AssetsNCR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

  • Based on the Altman-Z score of 1.31, we must say that NCR is in the distress zone and 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.
  • NCR has a debt to FCF ratio of 12.32. This is a negative value and a sign of low solvency as NCR would need 12.32 years to pay back of all of its debts.
  • The Debt to FCF ratio of NCR (12.32) is comparable to the rest of the industry.
  • NCR has a Debt/Equity ratio of 2.90. This is a high value indicating a heavy dependency on external financing.
  • NCR has a worse Debt to Equity ratio (2.90) than 84.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.9
Debt/FCF 12.32
Altman-Z 1.31
ROIC/WACC0.73
WACC8.89%
NCR Yearly LT Debt VS Equity VS FCFNCR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

2.3 Liquidity

  • NCR has a Current Ratio of 1.11. This is a normal value and indicates that NCR is financially healthy and should not expect problems in meeting its short term obligations.
  • NCR has a worse Current ratio (1.11) than 72.04% of its industry peers.
  • NCR has a Quick Ratio of 1.11. This is a bad value and indicates that NCR is not financially healthy enough and could expect problems in meeting its short term obligations.
  • NCR has a Quick ratio of 0.84. This is amonst the worse of the industry: NCR underperforms 81.72% of its industry peers.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 0.84
NCR Yearly Current Assets VS Current LiabilitesNCR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • The Revenue has been growing slightly by 0.77% in the past year.
  • The Revenue has been growing slightly by 3.78% on average over the past years.
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

  • Based on estimates for the next years, NCR will show a very strong growth in Earnings Per Share. The EPS will grow by 21.06% on average per year.
  • 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.
NCR Yearly Revenue VS EstimatesNCR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
NCR Yearly EPS VS EstimatesNCR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

More info and screens

Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 8.76 indicates a reasonable valuation of NCR.
  • NCR's Price/Earnings ratio is rather cheap when compared to the industry. NCR is cheaper than 94.62% of the companies in the same industry.
  • NCR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.93.
  • A Price/Forward Earnings ratio of 6.98 indicates a rather cheap valuation of NCR.
  • NCR's Price/Forward Earnings ratio is rather cheap when compared to the industry. NCR is cheaper than 94.62% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of NCR to the average of the S&P500 Index (27.77), we can say NCR is valued rather cheaply.
Industry RankSector Rank
PE 8.76
Fwd PE 6.98
NCR Price Earnings VS Forward Price EarningsNCR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 96.77% of the companies in the same industry are more expensive than NCR, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, NCR is valued cheaper than 95.34% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.67
EV/EBITDA 6.55
NCR Per share dataNCR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • NCR's earnings are expected to grow with 21.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y21.45%
EPS Next 3Y21.06%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for NCR!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

NCR CORPORATION

NYSE:NCR (10/16/2023, 8:04:00 PM)

After market: 27.12 +0.04 (+0.15%)

27.08

+0.85 (+3.24%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-23
Earnings (Next)02-05
Inst Owners105.83%
Inst Owner Change0.02%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 of NCR CORPORATION (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.


Can you provide the PE and PB ratios for NCR stock?

The Price/Earnings (PE) ratio for NCR CORPORATION (NCR) is 8.76 and the Price/Book (PB) ratio is 2.09.


What is the financial health of NCR CORPORATION (NCR) stock?

The financial health rating of NCR CORPORATION (NCR) is 1 / 10.