TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
29.41 USD
-0.36 (-1.21%)
Overall TDC gets a fundamental rating of 5 out of 10. We evaluated TDC against 277 industry peers in the Software industry. TDC scores excellent on profitability, but there are concerns on its financial health. TDC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- TDC had positive earnings in the past year.
- TDC had a positive operating cash flow in the past year.
- In the past 5 years TDC has always been profitable.
- Each year in the past 5 years TDC had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of TDC (6.70%) is better than 75.45% of its industry peers.
- TDC's Return On Equity of 53.88% is amongst the best of the industry. TDC outperforms 97.11% of its industry peers.
- With an excellent Return On Invested Capital value of 13.90%, TDC belongs to the best of the industry, outperforming 91.70% 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 10.78%.
- 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 67.15% of the companies in the same industry.
- In the last couple of years the Profit Margin of TDC has declined.
- The Operating Margin of TDC (11.75%) is better than 77.62% of its industry peers.
- In the last couple of years the Operating Margin of TDC has grown nicely.
- TDC has a Gross Margin of 58.99%. This is in the lower half of the industry: TDC underperforms 63.54% 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.
- The number of shares outstanding for TDC has been reduced compared to 5 years ago.
- Compared to 1 year ago, TDC has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.79, 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 0.79, TDC is doing worse than 65.34% 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.
- The Debt to FCF ratio of TDC (2.00) is better than 68.23% of its industry peers.
- TDC has a Debt/Equity ratio of 2.21. This is a high value indicating a heavy dependency on external financing.
- TDC's Debt to Equity ratio of 2.21 is on the low side compared to the rest of the industry. TDC is outperformed by 82.31% 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 | 0.79 |
ROIC/WACC1.33
WACC10.42%
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.
- The Current ratio of TDC (0.90) is worse than 79.42% 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's Quick ratio of 0.89 is on the low side compared to the rest of the industry. TDC is outperformed by 80.51% 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.
- The Earnings Per Share has been growing by 18.27% on average over the past years. This is quite good.
- 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 6.63% yearly.
- The Revenue is expected to grow by 0.30% on average over the next years.
EPS Next Y-0.06%
EPS Next 2Y2.48%
EPS Next 3Y4.06%
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
- 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
- With a Price/Earnings ratio of 12.36, TDC is valued correctly.
- Based on the Price/Earnings ratio, TDC is valued cheaply inside the industry as 85.92% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, TDC is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.52, the valuation of TDC can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, TDC is valued cheaply inside the industry as 85.56% of the companies are valued more expensively.
- TDC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
- 87.00% of the companies in the same industry are more expensive than TDC, based on the Enterprise Value to EBITDA ratio.
- 92.42% of the companies in the same industry are more expensive than TDC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.72 | ||
| EV/EBITDA | 10.37 |
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)0.68
EPS Next 2Y2.48%
EPS Next 3Y4.06%
5. Dividend
5.1 Amount
- TDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:TDC (1/20/2026, 3:36:03 PM)
29.41
-0.36 (-1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners105.63%
Inst Owner Change-0.71%
Ins Owners1.89%
Ins Owner Change-0.85%
Market Cap2.74B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts70.67
Price Target30.09 (2.31%)
Short Float %5.88%
Short Ratio3.42
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)6.12%
PT rev (3m)20.68%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)3.6%
EPS NY rev (1m)0.68%
EPS NY rev (3m)9.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 11.52 | ||
| P/S | 1.66 | ||
| P/FCF | 9.72 | ||
| P/OCF | 9.11 | ||
| P/B | 12.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.37 |
EPS(TTM)2.38
EY8.09%
EPS(NY)2.55
Fwd EY8.68%
FCF(TTM)3.03
FCFY10.29%
OCF(TTM)3.23
OCFY10.98%
SpS17.71
BVpS2.35
TBVpS-1.93
PEG (NY)N/A
PEG (5Y)0.68
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
WACC10.42%
ROIC/WACC1.33
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-0.06%
EPS Next 2Y2.48%
EPS Next 3Y4.06%
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 5 / 10 to TDC.
Can you provide the valuation status for TERADATA CORP?
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.
Can you provide the expected EPS growth for TDC stock?
The Earnings per Share (EPS) of TERADATA CORP (TDC) is expected to decline by -0.06% in the next year.