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%)
Overall NCR gets a fundamental rating of 4 out of 10. We evaluated NCR against 280 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. NCR is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
NCR had positive earnings in the past year.
In the past year NCR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NCR reported negative net income in multiple years.
Each year in the past 5 years NCR had a positive operating cash flow.
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.
With a decent Return On Equity value of 3.55%, NCR is doing good in the industry, outperforming 79.21% of the companies in the same industry.
NCR has a better Return On Invested Capital (6.51%) than 84.95% of its industry peers.
NCR had an Average Return On Invested Capital over the past 3 years of 4.72%. This is significantly below the industry average of 10.98%.
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
The Profit Margin of NCR (0.83%) is better than 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 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
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
NCR has a worse debt/assets ratio than last year.
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 has a Altman-Z score (1.31) which is comparable to the rest of the industry.
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.
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.
NCR's Debt to Equity ratio of 2.90 is on the low side compared to the rest of the industry. NCR is outperformed by 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
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.
A Quick Ratio of 0.84 indicates that NCR may have some problems paying its short term obligations.
NCR has a worse Quick ratio (0.84) than 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.
NCR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.91% yearly.
The Revenue has been growing slightly by 0.77% in the past year.
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
NCR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.06% yearly.
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
The Price/Earnings ratio is 8.76, which indicates a very decent valuation of NCR.
Based on the Price/Earnings ratio, NCR is valued cheaply inside the industry as 94.62% of the companies are valued more expensively.
NCR is valuated cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.98, which indicates a rather cheap valuation of NCR.
Based on the Price/Forward Earnings ratio, NCR is valued cheaper than 94.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. NCR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 6.98 |
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 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 Change2.57%
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%.