TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
27.2 USD
+0.59 (+2.22%)
27.2 USD
0 (0%)
Taking everything into account, TDC scores 5 out of 10 in our fundamental rating. TDC was compared to 281 industry peers in the Software industry. TDC has an excellent profitability rating, but there are concerns on its financial health. TDC has a bad growth rate and is valued cheaply.
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.
TDC had positive earnings in each of the past 5 years.
TDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TDC's Return On Assets of 6.70% is fine compared to the rest of the industry. TDC outperforms 75.80% of its industry peers.
TDC has a better Return On Equity (53.88%) than 97.15% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for TDC is in line with the industry average of 12.04%.
The 3 year average ROIC (12.22%) for TDC is below the current ROIC(13.90%), indicating increased profibility in the last year.
| 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
TDC has a better Profit Margin (7.15%) than 68.68% of its industry peers.
TDC's Profit Margin has declined in the last couple of years.
TDC has a Operating Margin of 11.75%. This is in the better half of the industry: TDC outperforms 76.87% of its industry peers.
In the last couple of years the Operating Margin of TDC has grown nicely.
With a Gross Margin value of 58.99%, TDC is not doing good in the industry: 63.35% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TDC has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TDC is 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.
The debt/assets ratio for TDC has been reduced compared to a year ago.
2.2 Solvency
TDC has an Altman-Z score of 0.71. This is a bad value and indicates that TDC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TDC (0.71) is worse than 64.06% of its industry peers.
TDC has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as TDC would need 2.00 years to pay back of all of its debts.
TDC's Debt to FCF ratio of 2.00 is fine compared to the rest 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.
Looking at the Debt to Equity ratio, with a value of 2.21, TDC is doing worse than 80.43% of the companies in the same industry.
Although TDC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 0.71 |
ROIC/WACC1.35
WACC10.27%
2.3 Liquidity
A Current Ratio of 0.90 indicates that TDC may have some problems paying its short term obligations.
TDC's Current ratio of 0.90 is on the low side compared to the rest of the industry. TDC is outperformed by 78.65% of its industry peers.
TDC has a Quick Ratio of 0.90. This is a bad value and indicates that TDC is not financially healthy enough and could expect problems in meeting its short term obligations.
TDC has a worse Quick ratio (0.89) than 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.
Measured over the past years, TDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.27% on average per year.
Looking at the last year, TDC shows a decrease in Revenue. The Revenue has decreased by -8.18% in the last year.
The Revenue has been decreasing by -1.62% on average over the past years.
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
TDC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.61% 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-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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
TDC is valuated reasonably with a Price/Earnings ratio of 11.43.
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.
Compared to an average S&P500 Price/Earnings ratio of 25.45, TDC is valued rather cheaply.
The Price/Forward Earnings ratio is 11.65, which indicates a very decent valuation of TDC.
Based on the Price/Forward Earnings ratio, TDC is valued cheaply inside the industry as 85.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, TDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaply inside the industry as 90.04% of the companies are valued more expensively.
TDC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TDC is cheaper than 93.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.11 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
TDC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.63
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 |
27.2
+0.59 (+2.22%)
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 Cap2.57B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts68
Price Target28.36 (4.26%)
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)13.73%
PT rev (3m)13.73%
EPS NQ rev (1m)2.98%
EPS NQ rev (3m)2.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 11.65 | ||
| P/S | 1.56 | ||
| P/FCF | 9.11 | ||
| P/OCF | 8.54 | ||
| P/B | 11.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.64 |
EPS(TTM)2.38
EY8.75%
EPS(NY)2.33
Fwd EY8.58%
FCF(TTM)2.98
FCFY10.97%
OCF(TTM)3.19
OCFY11.71%
SpS17.47
BVpS2.32
TBVpS-1.9
PEG (NY)N/A
PEG (5Y)0.63
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 | 0.71 |
F-Score7
WACC10.27%
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 11.43 and the Price/Book (PB) ratio is 11.74.
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.