TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
31.03 USD
-0.43 (-1.37%)
31.03 USD
0 (0%)
Taking everything into account, TDC scores 4 out of 10 in our fundamental rating. TDC was compared to 276 industry peers in the Software industry. While TDC has a great profitability rating, there are quite some concerns on its financial health. TDC has a valuation in line with the averages, but it does not seem to be growing.
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.
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
With a decent Return On Assets value of 6.70%, TDC is doing good in the industry, outperforming 75.36% of the companies in the same industry.
With an excellent Return On Equity value of 53.88%, TDC belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
TDC's Return On Invested Capital of 13.90% is amongst the best of the industry. TDC outperforms 91.67% 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 10.78%.
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 has a better Profit Margin (7.15%) than 67.03% of its industry peers.
In the last couple of years the Profit Margin of TDC has declined.
Looking at the Operating Margin, with a value of 11.75%, TDC is in the better half of the industry, outperforming 77.54% of the companies in the same industry.
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 63.41% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TDC is creating some value.
The number of shares outstanding for TDC has been reduced compared to 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 0.83. This is a bad value and indicates that TDC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.83, TDC is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
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 68.48% 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: 82.25% 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 | 0.83 |
ROIC/WACC1.35
WACC10.31%
2.3 Liquidity
A Current Ratio of 0.90 indicates that TDC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, TDC is doing worse than 79.35% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.89, TDC is doing worse than 80.43% of the companies in the same industry.
| 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.
TDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.27% yearly.
The Revenue has decreased by -8.18% in the past year.
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-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
TDC is valuated correctly with a Price/Earnings ratio of 13.04.
Based on the Price/Earnings ratio, TDC is valued cheaper than 84.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of TDC to the average of the S&P500 Index (27.00), we can say TDC is valued rather cheaply.
A Price/Forward Earnings ratio of 12.16 indicates a correct valuation of TDC.
TDC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TDC is cheaper than 85.87% of the companies in the same industry.
TDC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.04 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
86.59% of the companies in the same industry are more expensive than TDC, based on the Enterprise Value to EBITDA ratio.
92.75% 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 | 10.26 | ||
| EV/EBITDA | 10.78 |
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 2Y2.48%
EPS Next 3Y4.06%
5. Dividend
5.1 Amount
No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
31.03
-0.43 (-1.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.63%
Inst Owner Change0%
Ins Owners1.89%
Ins Owner Change-0.85%
Market Cap2.89B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts70.67
Price Target28.87 (-6.96%)
Short Float %5.95%
Short Ratio3.36
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)1.8%
PT rev (3m)15.77%
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 | 13.04 | ||
| Fwd PE | 12.16 | ||
| P/S | 1.75 | ||
| P/FCF | 10.26 | ||
| P/OCF | 9.61 | ||
| P/B | 13.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.78 |
EPS(TTM)2.38
EY7.67%
EPS(NY)2.55
Fwd EY8.22%
FCF(TTM)3.03
FCFY9.75%
OCF(TTM)3.23
OCFY10.41%
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 | 0.83 |
F-Score7
WACC10.31%
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-0.06%
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 4 / 10 to TDC.
Can you provide the valuation status for TERADATA CORP?
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.
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.