NCR CORPORATION (NCR) Fundamental Analysis & Valuation

NYSE:NCR • US62886E1082

Current stock price

27.08 USD
+0.85 (+3.24%)
At close:
27.12 USD
+0.04 (+0.15%)
After Hours:

This NCR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. NCR Profitability Analysis

1.1 Basic Checks

  • In the past year NCR was profitable.
  • 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

  • With a decent Return On Assets value of 0.58%, NCR is doing good in 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.
  • Looking at the Return On Invested Capital, with a value of 6.51%, NCR belongs to the top 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 11.04%.
  • 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 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.
  • The Operating Margin of NCR (9.04%) is better than 82.08% of its industry peers.
  • NCR's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 25.20%, NCR is doing worse than 84.23% of the companies in the same industry.
  • In the last couple of years the Gross Margin of NCR has declined.
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

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1

2. NCR Health Analysis

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.
  • The number of shares outstanding for NCR has been increased compared to 1 year ago.
  • NCR has a worse debt/assets ratio than last year.
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.
  • With a Altman-Z score value of 1.31, NCR perfoms like the industry average, outperforming 45.52% of the companies in the same industry.
  • 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.
  • NCR has a Debt to FCF ratio (12.32) which is in line with its industry peers.
  • A Debt/Equity ratio of 2.90 is on the high side and indicates that NCR has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 2.90, NCR is doing worse than 84.59% of the companies in the same industry.
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'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 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

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

5

3. NCR Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 24.10% over the past year.
  • 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%.
  • NCR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.78% yearly.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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

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9

4. NCR Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 8.76, the valuation of NCR can be described as very reasonable.
  • 94.62% of the companies in the same industry are more expensive than NCR, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of NCR to the average of the S&P500 Index (26.54), we can say NCR is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 6.98, the valuation of NCR can be described as very cheap.
  • 94.62% of the companies in the same industry are more expensive than NCR, based on the Price/Forward Earnings ratio.
  • NCR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.68, which is the current average of the S&P500 Index.
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

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NCR is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, NCR is valued cheaply inside the industry as 95.34% of the companies are valued more expensively.
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

  • 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%

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

0

5. NCR Dividend Analysis

5.1 Amount

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

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NCR Fundamentals: All Metrics, Ratios and Statistics

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
Industry Strength6.21
Industry Growth67.7
Earnings (Last)10-23
Earnings (Next)02-05
Inst Owners105.83%
Inst Owner Change-1.21%
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 Number0 (-100%)
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 Fundamental Analysis 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.


How profitable is NCR CORPORATION (NCR) stock?

NCR CORPORATION (NCR) has a profitability rating of 5 / 10.


How financially healthy is NCR CORPORATION?

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


What is the expected EPS growth for NCR CORPORATION (NCR) stock?

The Earnings per Share (EPS) of NCR CORPORATION (NCR) is expected to grow by 33.26% in the next year.