Taking everything into account, NCR scores 4 out of 10 in our fundamental rating. NCR was compared to 277 industry peers in the Software industry. NCR has a medium profitability rating, but doesn't score so well on its financial health evaluation. NCR scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.

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.
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.
The Average Return On Invested Capital over the past 3 years for NCR is significantly below the industry average of 10.78%.
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

With a decent Profit Margin value of 0.83%, NCR is doing good in the industry, outperforming 75.27% of the companies in the same industry.
In the last couple of years the Profit Margin of NCR has declined.
NCR has a Operating Margin of 9.04%. This is amongst the best in the industry. NCR outperforms 82.08% of its industry peers.
In the last couple of years the Operating Margin of NCR has declined.
NCR has a Gross Margin of 25.20%. This is amonst the worse of the industry: NCR underperforms 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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.
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 of 12.32. This is comparable to the rest of the industry: NCR outperforms 55.91% of 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 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.
Looking at the Current ratio, with a value of 1.11, NCR is doing worse than 72.04% of the companies in the same industry.
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 Rank	Sector Rank
Current Ratio	1.11
Quick Ratio	0.84

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

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%.
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

NCR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.06% yearly.
Based on estimates for the next years, NCR will show a small growth in Revenue. The Revenue will grow by 3.29% on average per year.

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.

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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.
When comparing the Price/Earnings ratio of NCR to the average of the S&P500 Index (27.21), 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.
Based on the Price/Forward Earnings ratio, NCR is valued 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 (24.26), we can say NCR is valued rather cheaply.

		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.
NCR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NCR is 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

The 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.