TERADATA CORP (TDC) Stock Fundamental Analysis
NYSE:TDC - New York Stock Exchange, Inc. - US88076W1036 - Common Stock - Currency: USD
Overall TDC gets a fundamental rating of 5 out of 10. We evaluated TDC against 282 industry peers in the Software industry. TDC has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TDC.
1. Profitability
1.1 Basic Checks
In the past year TDC was profitable.
In the past year TDC had a positive cash flow from operations.
Each year in the past 5 years TDC has 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 (7.88%) is better than 81.91% of its industry peers.
The Return On Equity of TDC (87.34%) is better than 97.87% of its industry peers.
The Return On Invested Capital of TDC (17.40%) is better than 92.91% of its industry peers.
TDC had an Average Return On Invested Capital over the past 3 years of 12.22%. This is in line with the industry average of 12.28%.
The last Return On Invested Capital (17.40%) for TDC is above the 3 year average (12.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 87.34% | ||
| ROIC | 17.4% |
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
TDC's Profit Margin of 8.10% is fine compared to the rest of the industry. TDC outperforms 75.53% of its industry peers.
TDC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.45%, TDC belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
TDC's Operating Margin has improved in the last couple of years.
TDC has a Gross Margin of 60.01%. This is in the lower half of the industry: TDC underperforms 60.64% of its industry peers.
In the last couple of years the Gross Margin of TDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.45% | ||
| PM (TTM) | 8.1% | ||
| GM | 60.01% |
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.
The number of shares outstanding for TDC has been reduced compared to 1 year ago.
Compared to 5 years ago, TDC has less shares outstanding
TDC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that TDC is in the distress zone and has some risk of bankruptcy.
TDC has a Altman-Z score of 0.57. This is in the lower half of the industry: TDC underperforms 67.38% of its industry peers.
The Debt to FCF ratio of TDC is 2.20, which is a good value as it means it would take TDC, 2.20 years of fcf income to pay off all of its debts.
TDC has a Debt to FCF ratio of 2.20. This is in the better half of the industry: TDC outperforms 67.38% of its industry peers.
TDC has a Debt/Equity ratio of 3.11. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.11, TDC is doing worse than 82.27% of the companies in the same industry.
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 | 3.11 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 0.57 |
ROIC/WACC1.74
WACC9.98%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TDC may have some problems paying its short term obligations.
The Current ratio of TDC (0.84) is worse than 79.79% of its industry peers.
A Quick Ratio of 0.82 indicates that TDC may have some problems paying its short term obligations.
TDC's Quick ratio of 0.82 is on the low side compared to the rest of the industry. TDC is outperformed by 79.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
TDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.14%, which is quite impressive.
TDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.27% yearly.
Looking at the last year, TDC shows a decrease in Revenue. The Revenue has decreased by -6.53% in the last year.
Measured over the past years, TDC shows a decrease in Revenue. The Revenue has been decreasing by -1.62% on average per year.
EPS 1Y (TTM)24.14%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%15.79%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-10.11%
3.2 Future
TDC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.38% yearly.
TDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.30% yearly.
EPS Next Y-9.42%
EPS Next 2Y-1.49%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue Next Year-7.11%
Revenue Next 2Y-3.45%
Revenue Next 3Y-2.23%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TDC is valuated reasonably with a Price/Earnings ratio of 8.50.
94.33% of the companies in the same industry are more expensive than TDC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TDC to the average of the S&P500 Index (27.30), we can say TDC is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.09, the valuation of TDC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TDC is valued cheaper than 93.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TDC to the average of the S&P500 Index (21.76), we can say TDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
TDC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TDC is cheaper than 96.45% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 96.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 7.27 |
4.3 Compensation for Growth
The excellent profitability rating of TDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-1.49%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
TDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.43
-0.84 (-3.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.82%
Inst Owner Change-0.02%
Ins Owners1.73%
Ins Owner Change21.96%
Market Cap2.05B
Analysts68
Price Target24.93 (16.33%)
Short Float %6.48%
Short Ratio5.63
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)18.27%
Min EPS beat(2)15.81%
Max EPS beat(2)20.73%
EPS beat(4)4
Avg EPS beat(4)22.59%
Min EPS beat(4)15.81%
Max EPS beat(4)32.21%
EPS beat(8)7
Avg EPS beat(8)12.98%
EPS beat(12)10
Avg EPS beat(12)11.32%
EPS beat(16)14
Avg EPS beat(16)20.75%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-2.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)4.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.44%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)6
Avg Revenue beat(16)-0.39%
PT rev (1m)-14.53%
PT rev (3m)-19.06%
EPS NQ rev (1m)-2.4%
EPS NQ rev (3m)-29.74%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-1.58%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 9.09 | ||
| P/S | 1.2 | ||
| P/FCF | 7.79 | ||
| P/OCF | 7.21 | ||
| P/B | 12.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.27 |
EPS(TTM)2.52
EY11.76%
EPS(NY)2.36
Fwd EY11%
FCF(TTM)2.75
FCFY12.84%
OCF(TTM)2.97
OCFY13.86%
SpS17.81
BVpS1.65
TBVpS-2.49
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 87.34% | ||
| ROCE | 28.41% | ||
| ROIC | 17.4% | ||
| ROICexc | 32.02% | ||
| ROICexgc | 333.97% | ||
| OM | 13.45% | ||
| PM (TTM) | 8.1% | ||
| GM | 60.01% | ||
| FCFM | 15.44% |
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%
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.11 | ||
| Debt/FCF | 2.2 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 22.58% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.2% | ||
| Profit Quality | 190.58% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 0.57 |
F-Score7
WACC9.98%
ROIC/WACC1.74
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)24.14%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%15.79%
EPS Next Y-9.42%
EPS Next 2Y-1.49%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-10.11%
Revenue Next Year-7.11%
Revenue Next 2Y-3.45%
Revenue Next 3Y-2.23%
Revenue Next 5Y0.3%
EBIT growth 1Y47.74%
EBIT growth 3Y-3.28%
EBIT growth 5Y83.67%
EBIT Next Year17.09%
EBIT Next 3Y8.04%
EBIT Next 5YN/A
FCF growth 1Y-26.54%
FCF growth 3Y-13.77%
FCF growth 5Y25.49%
OCF growth 1Y-24.67%
OCF growth 3Y-13.18%
OCF growth 5Y15.41%