TERADATA CORP (TDC) Stock Fundamental Analysis
USA - NYSE:TDC - US88076W1036 - Common Stock
26.605 USD
-0.18 (-0.69%)
Overall TDC gets a fundamental rating of 5 out of 10. We evaluated TDC against 281 industry peers in the Software industry. TDC scores excellent on profitability, but there are concerns on its financial health. TDC is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TDC had positive earnings in the past year.
In the past year TDC had a positive cash flow from operations.
In the past 5 years TDC has always been profitable.
TDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TDC (6.70%) is better than 75.80% of its industry peers.
Looking at the Return On Equity, with a value of 53.88%, TDC belongs to the top of the industry, outperforming 97.15% of the companies in the same industry.
TDC has a Return On Invested Capital of 13.90%. This is amongst the best in the industry. TDC outperforms 91.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TDC is in line with the industry average of 12.08%.
The last Return On Invested Capital (13.90%) for TDC is above the 3 year average (12.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 53.88% | ||
| ROIC | 13.9% |
ROA(3y)3.88%
ROA(5y)4.86%
ROE(3y)48.14%
ROE(5y)41.73%
ROIC(3y)12.22%
ROIC(5y)9.98%
1.3 Margins
With a decent Profit Margin value of 7.15%, TDC is doing good in the industry, outperforming 68.33% of the companies in the same industry.
TDC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.75%, TDC is in the better half of the industry, outperforming 76.87% of the companies in the same industry.
TDC's Operating Margin has improved in the last couple of years.
The Gross Margin of TDC (58.99%) is worse than 63.35% of its industry peers.
TDC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.75% | ||
| PM (TTM) | 7.15% | ||
| GM | 58.99% |
OM growth 3Y-0.3%
OM growth 5Y86.69%
PM growth 3Y-5.29%
PM growth 5YN/A
GM growth 3Y-0.77%
GM growth 5Y3.75%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TDC is still creating some value.
Compared to 1 year ago, TDC has less shares outstanding
The number of shares outstanding for TDC has been reduced compared to 5 years ago.
TDC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that TDC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.69, TDC is doing worse than 64.06% of the companies in the same industry.
The Debt to FCF ratio of TDC is 2.00, which is a good value as it means it would take TDC, 2.00 years of fcf income to pay off all of its debts.
TDC has a Debt to FCF ratio of 2.00. This is in the better half of the industry: TDC outperforms 68.68% of its industry peers.
A Debt/Equity ratio of 2.21 is on the high side and indicates that TDC has dependencies on debt financing.
TDC has a worse Debt to Equity ratio (2.21) than 80.43% of its industry peers.
Even though the debt/equity ratio score it not favorable for TDC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 0.69 |
ROIC/WACC1.35
WACC10.33%
2.3 Liquidity
A Current Ratio of 0.90 indicates that TDC may have some problems paying its short term obligations.
With a Current ratio value of 0.90, TDC is not doing good in the industry: 78.65% of the companies in the same industry are doing better.
A Quick Ratio of 0.89 indicates that TDC may have some problems paying its short term obligations.
TDC's Quick ratio of 0.89 is on the low side compared to the rest of the industry. TDC is outperformed by 79.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for TDC have decreased by -3.25% in the last year.
TDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.27% yearly.
TDC shows a decrease in Revenue. In the last year, the revenue decreased by -8.18%.
TDC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.62% yearly.
EPS 1Y (TTM)-3.25%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-5.45%
3.2 Future
Based on estimates for the next years, TDC will show a small growth in Earnings Per Share. The EPS will grow by 2.61% on average per year.
The Revenue is expected to grow by 0.30% on average over the next years.
EPS Next Y-8.57%
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
EPS Next 5YN/A
Revenue Next Year-6.77%
Revenue Next 2Y-3.65%
Revenue Next 3Y-2.15%
Revenue Next 5Y0.3%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.18 indicates a reasonable valuation of TDC.
Compared to the rest of the industry, the Price/Earnings ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 85.41% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TDC to the average of the S&P500 Index (25.46), we can say TDC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.40, the valuation of TDC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 85.77% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.39. TDC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 89.68% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TDC is valued cheaper than 94.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 9.51 |
4.3 Compensation for Growth
The decent profitability rating of TDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
5. Dividend
5.1 Amount
TDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TDC (11/19/2025, 2:58:26 PM)
26.605
-0.18 (-0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.15%
Inst Owner Change1.89%
Ins Owners1.92%
Ins Owner Change5.3%
Market Cap2.51B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts68
Price Target24.93 (-6.3%)
Short Float %9.68%
Short Ratio6.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.49%
Min EPS beat(2)15.96%
Max EPS beat(2)33.02%
EPS beat(4)4
Avg EPS beat(4)21.38%
Min EPS beat(4)15.81%
Max EPS beat(4)33.02%
EPS beat(8)8
Avg EPS beat(8)18.68%
EPS beat(12)10
Avg EPS beat(12)13.79%
EPS beat(16)14
Avg EPS beat(16)18.29%
Revenue beat(2)2
Avg Revenue beat(2)1.2%
Min Revenue beat(2)1%
Max Revenue beat(2)1.39%
Revenue beat(4)2
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)1.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.35%
Revenue beat(12)6
Avg Revenue beat(12)0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)2.42%
EPS NQ rev (3m)3.58%
EPS NY rev (1m)0%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 11.4 | ||
| P/S | 1.52 | ||
| P/FCF | 8.92 | ||
| P/OCF | 8.35 | ||
| P/B | 11.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.51 |
EPS(TTM)2.38
EY8.95%
EPS(NY)2.33
Fwd EY8.77%
FCF(TTM)2.98
FCFY11.22%
OCF(TTM)3.19
OCFY11.97%
SpS17.47
BVpS2.32
TBVpS-1.9
PEG (NY)N/A
PEG (5Y)0.61
Graham Number11.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 53.88% | ||
| ROCE | 22.69% | ||
| ROIC | 13.9% | ||
| ROICexc | 26.47% | ||
| ROICexgc | 237.66% | ||
| OM | 11.75% | ||
| PM (TTM) | 7.15% | ||
| GM | 58.99% | ||
| FCFM | 17.08% |
ROA(3y)3.88%
ROA(5y)4.86%
ROE(3y)48.14%
ROE(5y)41.73%
ROIC(3y)12.22%
ROIC(5y)9.98%
ROICexc(3y)27.17%
ROICexc(5y)21.78%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)19.95%
ROCE(5y)16.29%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y11.61%
ROICexc growth 5Y109.1%
OM growth 3Y-0.3%
OM growth 5Y86.69%
PM growth 3Y-5.29%
PM growth 5YN/A
GM growth 3Y-0.77%
GM growth 5Y3.75%
F-Score7
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 21.35% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.36% | ||
| Profit Quality | 238.98% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.69 |
F-Score7
WACC10.33%
ROIC/WACC1.35
Cap/Depr(3y)18.39%
Cap/Depr(5y)21.13%
Cap/Sales(3y)1.16%
Cap/Sales(5y)1.57%
Profit Quality(3y)678.93%
Profit Quality(5y)499.62%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.25%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%4.35%
EPS Next Y-8.57%
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-5.45%
Revenue Next Year-6.77%
Revenue Next 2Y-3.65%
Revenue Next 3Y-2.15%
Revenue Next 5Y0.3%
EBIT growth 1Y-10.6%
EBIT growth 3Y-3.28%
EBIT growth 5Y83.67%
EBIT Next Year16.14%
EBIT Next 3Y7.17%
EBIT Next 5YN/A
FCF growth 1Y-8.14%
FCF growth 3Y-13.77%
FCF growth 5Y25.49%
OCF growth 1Y-8.23%
OCF growth 3Y-13.18%
OCF growth 5Y15.41%
TERADATA CORP / TDC FAQ
What is the fundamental rating for TDC stock?
ChartMill assigns a fundamental rating of 5 / 10 to TDC.
What is the valuation status of TERADATA CORP (TDC) stock?
ChartMill assigns a valuation rating of 7 / 10 to TERADATA CORP (TDC). This can be considered as Undervalued.
How profitable is TERADATA CORP (TDC) stock?
TERADATA CORP (TDC) has a profitability rating of 7 / 10.
What is the valuation of TERADATA CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TERADATA CORP (TDC) is 11.18 and the Price/Book (PB) ratio is 11.48.
What is the earnings growth outlook for TERADATA CORP?
The Earnings per Share (EPS) of TERADATA CORP (TDC) is expected to decline by -8.57% in the next year.