TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
31.39 USD
+1.53 (+5.12%)
31.57 USD
+0.18 (+0.57%)
Overall TDC gets a fundamental rating of 4 out of 10. We evaluated TDC against 280 industry peers in the Software industry. TDC has an excellent profitability rating, but there are concerns on its financial health. TDC has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years TDC has always 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 (6.70%) is better than 75.71% of its industry peers.
With an excellent Return On Equity value of 53.88%, TDC belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
TDC has a better Return On Invested Capital (13.90%) than 91.43% 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 10.97%.
The last Return On Invested Capital (13.90%) for TDC is above the 3 year average (12.22%), which is a sign of increasing profitability.
| 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's Profit Margin of 7.15% is fine compared to the rest of the industry. TDC outperforms 67.50% of its industry peers.
TDC's Profit Margin has declined in the last couple of years.
The Operating Margin of TDC (11.75%) is better than 76.79% of its industry peers.
In the last couple of years the Operating Margin of TDC has grown nicely.
TDC's Gross Margin of 58.99% is on the low side compared to the rest of the industry. TDC is outperformed by 62.86% of its industry peers.
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.
TDC has less shares outstanding than it did 1 year ago.
TDC has less shares outstanding than it did 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.
The Altman-Z score of TDC (0.79) is worse than 64.29% 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 has a Debt to FCF ratio of 2.00. This is in the better half of the industry: TDC outperforms 69.29% 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 81.43% 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 | 0.79 |
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 has a worse Current ratio (0.90) than 78.57% of its industry peers.
A Quick Ratio of 0.89 indicates that TDC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.89, TDC is doing worse than 79.64% of the companies in the same industry.
| 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%.
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%.
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.
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
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
The Price/Earnings ratio is 13.19, which indicates a correct valuation of TDC.
Based on the Price/Earnings ratio, TDC is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
TDC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.32, which indicates a correct valuation of TDC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 85.36% of the companies listed in the same industry.
TDC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 12.32 |
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.
TDC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TDC is cheaper than 93.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| 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)0.72
EPS Next 2Y2.42%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.39
+1.53 (+5.12%)
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 Change1.9%
Market Cap2.93B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts70.67
Price Target28.36 (-9.65%)
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)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)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 12.32 | ||
| P/S | 1.77 | ||
| P/FCF | 10.37 | ||
| P/OCF | 9.72 | ||
| P/B | 13.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.4 |
EPS(TTM)2.38
EY7.58%
EPS(NY)2.55
Fwd EY8.12%
FCF(TTM)3.03
FCFY9.64%
OCF(TTM)3.23
OCFY10.29%
SpS17.71
BVpS2.35
TBVpS-1.93
PEG (NY)N/A
PEG (5Y)0.72
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
WACC10.27%
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-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 13.19 and the Price/Book (PB) ratio is 13.36.
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.