TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
30.71 USD
+0.85 (+2.85%)
30.8612 USD
+0.15 (+0.49%)
Taking everything into account, TDC scores 4 out of 10 in our fundamental rating. TDC was compared to 280 industry peers in the Software industry. While TDC has a great profitability rating, there are quite some concerns on its financial health. TDC is valued correctly, 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.
TDC had positive earnings in each of the past 5 years.
Each year in the past 5 years TDC had a positive operating cash flow.
1.2 Ratios
TDC has a better Return On Assets (6.70%) than 76.07% of its industry peers.
TDC's Return On Equity of 53.88% is amongst the best of the industry. TDC outperforms 97.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.90%, TDC belongs to the top of the industry, outperforming 91.79% of the companies in the same industry.
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 10.73%.
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
Looking at the Profit Margin, with a value of 7.15%, TDC is in the better half of the industry, outperforming 68.21% of the companies in the same industry.
TDC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 11.75%, TDC is doing good in the industry, outperforming 77.50% of the companies in the same industry.
TDC's Operating Margin has improved in the last couple of years.
TDC has a worse Gross Margin (58.99%) than 62.86% 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.
TDC has less shares outstanding than it did 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
TDC has an Altman-Z score of 0.79. This is a bad value and indicates that TDC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, TDC is doing worse than 63.57% of the companies in the same industry.
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 68.57% 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.
With a Debt to Equity ratio value of 2.21, TDC is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
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 | 0.79 |
ROIC/WACC1.36
WACC10.24%
2.3 Liquidity
TDC has a Current 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 Current ratio of 0.90. This is in the lower half of the industry: TDC underperforms 78.93% of its industry peers.
A Quick Ratio of 0.89 indicates that TDC may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, TDC is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 18.27% on average over the past years. This is quite good.
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 6.63% on average per year.
Based on estimates for the next years, TDC will show a small growth in Revenue. The Revenue will grow by 0.30% on average per year.
EPS Next Y-0.74%
EPS Next 2Y2.42%
EPS Next 3Y4.04%
EPS Next 5Y6.63%
Revenue Next Year-6.38%
Revenue Next 2Y-3.42%
Revenue Next 3Y-2.13%
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.
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 correctly with a Price/Earnings ratio of 12.90.
Based on the Price/Earnings ratio, TDC is valued cheaper than 86.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.38. TDC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.05, TDC is valued correctly.
85.00% of the companies in the same industry are more expensive than TDC, based on the Price/Forward Earnings ratio.
TDC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.05 |
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 88.57% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TDC is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| EV/EBITDA | 10.4 |
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)0.71
EPS Next 2Y2.42%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
TDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.71
+0.85 (+2.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.35%
Inst Owner Change2.79%
Ins Owners1.89%
Ins Owner Change-0.85%
Market Cap2.86B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts70.67
Price Target28.36 (-7.65%)
Short Float %6.9%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.91%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)8.56%
EPS NY rev (3m)8.56%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.05 | ||
| P/S | 1.73 | ||
| P/FCF | 10.15 | ||
| P/OCF | 9.51 | ||
| P/B | 13.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.4 |
EPS(TTM)2.38
EY7.75%
EPS(NY)2.55
Fwd EY8.3%
FCF(TTM)3.03
FCFY9.85%
OCF(TTM)3.23
OCFY10.52%
SpS17.71
BVpS2.35
TBVpS-1.93
PEG (NY)N/A
PEG (5Y)0.71
Graham Number11.22
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 | 0.79 |
F-Score7
WACC10.24%
ROIC/WACC1.36
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-0.74%
EPS Next 2Y2.42%
EPS Next 3Y4.04%
EPS Next 5Y6.63%
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-5.45%
Revenue Next Year-6.38%
Revenue Next 2Y-3.42%
Revenue Next 3Y-2.13%
Revenue Next 5Y0.3%
EBIT growth 1Y-10.6%
EBIT growth 3Y-3.28%
EBIT growth 5Y83.67%
EBIT Next Year21.48%
EBIT Next 3Y8.54%
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 4 / 10 to TDC.
What is the valuation status of TERADATA CORP (TDC) stock?
ChartMill assigns a valuation rating of 6 / 10 to TERADATA CORP (TDC). This can be considered as Fairly Valued.
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 12.9 and the Price/Book (PB) ratio is 13.07.
What is the earnings growth outlook for TERADATA CORP?
The Earnings per Share (EPS) of TERADATA CORP (TDC) is expected to decline by -0.74% in the next year.