TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
30.3 USD
-0.41 (-1.34%)
31.16 USD
+0.86 (+2.84%)
We assign a fundamental rating of 5 out of 10 to TDC. TDC was compared to 281 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.
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
Looking at the Return On Assets, with a value of 6.70%, TDC is in the better half of the industry, outperforming 75.09% of the companies in the same industry.
TDC's Return On Equity of 53.88% is amongst the best of the industry. TDC outperforms 97.15% of its industry peers.
TDC's Return On Invested Capital of 13.90% is amongst the best of the industry. TDC outperforms 91.46% 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 12.03%.
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 67.97% of the companies in the same industry.
TDC's Profit Margin has declined in the last couple of years.
The Operating Margin of TDC (11.75%) is better than 76.51% of its industry peers.
TDC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 58.99%, TDC is not doing good in the industry: 63.70% 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
Compared to 5 years ago, TDC has less shares outstanding
Compared to 1 year ago, TDC has an improved debt to assets ratio.
2.2 Solvency
TDC has an Altman-Z score of 0.82. This is a bad value and indicates that TDC is not financially healthy and even has some risk of bankruptcy.
TDC has a Altman-Z score of 0.82. This is in the lower half of the industry: TDC underperforms 64.06% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.00, TDC is in the better half of the industry, outperforming 69.04% of the companies in the same industry.
A Debt/Equity ratio of 2.21 is on the high side and indicates that TDC has dependencies on debt financing.
The Debt to Equity ratio of TDC (2.21) is worse than 81.49% 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 | 0.82 |
ROIC/WACC1.37
WACC10.18%
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's Current ratio of 0.90 is on the low side compared to the rest of the industry. TDC is outperformed by 79.36% 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.
With a Quick ratio value of 0.89, TDC is not doing good in the industry: 79.36% 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
TDC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.25%.
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.
TDC shows a decrease in Revenue. In the last year, the revenue decreased by -8.18%.
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)-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
The Earnings Per Share is expected to grow by 6.63% on average over the next years.
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 5Y6.63%
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.
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
The Price/Earnings ratio is 12.73, which indicates a correct 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 83.63% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TDC to the average of the S&P500 Index (26.37), we can say TDC is valued rather cheaply.
TDC is valuated correctly with a Price/Forward Earnings ratio of 12.98.
83.63% 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 rather cheap valuation when compared to the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 12.98 |
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 87.54% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TDC is valued cheaply inside the industry as 91.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.01 | ||
| EV/EBITDA | 10.68 |
4.3 Compensation for Growth
The decent profitability rating of TDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
5. Dividend
5.1 Amount
No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.3
-0.41 (-1.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.15%
Inst Owner Change2.79%
Ins Owners1.92%
Ins Owner Change1.9%
Market Cap2.82B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts68
Price Target28.36 (-6.4%)
Short Float %8.12%
Short Ratio4.8
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)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 12.98 | ||
| P/S | 1.71 | ||
| P/FCF | 10.01 | ||
| P/OCF | 9.38 | ||
| P/B | 12.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.68 |
EPS(TTM)2.38
EY7.85%
EPS(NY)2.33
Fwd EY7.7%
FCF(TTM)3.03
FCFY9.99%
OCF(TTM)3.23
OCFY10.66%
SpS17.71
BVpS2.35
TBVpS-1.93
PEG (NY)N/A
PEG (5Y)0.7
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 | 0.82 |
F-Score7
WACC10.18%
ROIC/WACC1.37
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 5Y6.63%
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-5.45%
Revenue Next Year-6.77%
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 12.73 and the Price/Book (PB) ratio is 12.89.
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.