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 276 industry peers in the Software industry. There are concerns on the financial health of NCR while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on NCR.
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.
1.2 Ratios
NCR has a better Return On Assets (0.58%) than 75.27% of its industry peers.
NCR has a better Return On Equity (3.55%) 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.
NCR had an Average Return On Invested Capital over the past 3 years of 4.72%. This is significantly below the industry average of 10.78%.
The 3 year average ROIC (4.72%) for NCR is below the current ROIC(6.51%), indicating increased profibility in the last year.
| 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
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.
With an excellent Operating Margin value of 9.04%, NCR belongs to the best 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.
With a Gross Margin value of 25.20%, NCR is not doing good in the industry: 84.23% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NCR has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NCR is destroying value.
NCR has more shares outstanding than it did 1 year ago.
NCR has a worse debt/assets ratio than last year.
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.
The Altman-Z score of NCR (1.31) 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.
With a Debt to FCF ratio value of 12.32, NCR perfoms like the industry average, 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'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
A Current Ratio of 1.11 indicates that NCR should not have too much problems paying its short term obligations.
NCR has a Current ratio of 1.11. This is in the lower half of the industry: NCR underperforms 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 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%.
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.
NCR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.29% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.76, the valuation of NCR can be described as reasonable.
Based on the Price/Earnings ratio, NCR is valued cheaper than 94.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of NCR to the average of the S&P500 Index (27.00), we can say NCR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.98, the valuation of NCR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NCR indicates a rather cheap valuation: NCR is cheaper than 94.62% of the companies listed in the same industry.
NCR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NCR indicates a rather cheap valuation: NCR is cheaper than 96.77% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NCR indicates a rather cheap valuation: NCR is cheaper than 95.34% of the companies listed 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.
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%
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 Change0%
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 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.