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%)
NCR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. NCR has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on NCR.
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.
In the past 5 years NCR always reported a positive cash flow from operatings.
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.
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.
The Average Return On Invested Capital over the past 3 years for NCR is significantly below the industry average of 12.03%.
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
NCR has a better Profit Margin (0.83%) than 75.27% of its industry peers.
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.
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 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.
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.
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.
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's Debt to FCF ratio of 12.32 is in line compared to the rest of the industry. NCR outperforms 55.91% of its industry peers.
NCR has a Debt/Equity ratio of 2.90. This is a high value indicating a heavy dependency on external 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.
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 |
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.
Measured over the past years, NCR shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.91% on average per year.
Looking at the last year, NCR shows a small growth in Revenue. The Revenue has grown by 0.77% in the last 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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 8.76, the valuation of NCR can be described as very reasonable.
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 26.41.
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.
When comparing the Price/Forward Earnings ratio of NCR to the average of the S&P500 Index (35.40), we can say NCR is valued rather cheaply.
| 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.
95.34% of the companies in the same industry are more expensive than NCR, based on the Price/Free Cash Flow ratio.
| 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.
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 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%.