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

  • NCR has a better Return On Assets (0.58%) than 75.27% of its industry peers.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for NCR is significantly below the industry average of 10.92%.
  • The 3 year average ROIC (4.72%) for NCR is below the current ROIC(6.51%), indicating increased profibility in the last year.
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

  • 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.
  • NCR's Operating Margin has declined in the last couple of years.
  • NCR's Gross Margin of 25.20% is on the low side compared to the rest of the industry. NCR is outperformed by 84.23% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NCR is destroying value.
  • Compared to 1 year ago, NCR has more shares outstanding
  • Compared to 1 year ago, NCR has a worse debt to assets ratio.
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

  • 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.
  • Looking at the Altman-Z score, with a value of 1.31, NCR is in line with its industry, outperforming 45.52% of the companies in the same 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'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.
  • 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 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

  • A Current Ratio of 1.11 indicates that NCR should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.11, NCR is not doing good in the industry: 72.04% of the companies in the same industry are doing better.
  • 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

  • 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.
  • The Revenue has been growing slightly by 0.77% in the past year.
  • Measured over the past years, NCR shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
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.
  • 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

  • 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.
  • The average S&P500 Price/Earnings ratio is at 24.75. NCR is valued rather cheaply when compared to this.
  • 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.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, NCR is valued rather cheaply.
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

  • 96.77% of the companies in the same industry are more expensive than NCR, based on the Enterprise Value to EBITDA ratio.
  • 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 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.
  • 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%

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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
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 NumberN/A
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.


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.