TERADATA CORP (TDC) Stock Fundamental Analysis
USA - NYSE:TDC - US88076W1036 - Common Stock
22.21 USD
+0.4 (+1.83%)
22.21 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TDC. TDC was compared to 280 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
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
Looking at the Return On Assets, with a value of 6.33%, TDC is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
TDC has a Return On Equity of 62.50%. This is amongst the best in the industry. TDC outperforms 97.14% of its industry peers.
TDC's Return On Invested Capital of 13.87% is amongst the best of the industry. TDC outperforms 91.43% of its industry peers.
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 11.76%.
The last Return On Invested Capital (13.87%) for TDC is above the 3 year average (12.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 62.5% | ||
| ROIC | 13.87% |
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 6.57% is fine compared to the rest of the industry. TDC outperforms 69.64% of its industry peers.
In the last couple of years the Profit Margin of TDC has declined.
TDC has a better Operating Margin (11.34%) 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 58.93% is on the low side compared to the rest of the industry. TDC is outperformed by 63.93% of its industry peers.
In the last couple of years the Gross Margin of TDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.34% | ||
| PM (TTM) | 6.57% | ||
| GM | 58.93% |
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.
Compared to 1 year ago, TDC has less shares outstanding
TDC has less shares outstanding than it did 5 years ago.
TDC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that TDC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TDC (0.46) is worse than 68.93% of its industry peers.
TDC has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as TDC would need 2.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.18, TDC is in the better half of the industry, outperforming 66.79% of the companies in the same industry.
TDC has a Debt/Equity ratio of 2.78. This is a high value indicating a heavy dependency on external financing.
TDC's Debt to Equity ratio of 2.78 is on the low side compared to the rest of the industry. TDC is outperformed by 82.14% 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 | 2.78 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 0.46 |
ROIC/WACC1.36
WACC10.19%
2.3 Liquidity
TDC has a Current Ratio of 0.84. 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 0.84. This is in the lower half of the industry: TDC underperforms 78.93% of its industry peers.
TDC has a Quick Ratio of 0.84. 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 0.84, TDC is not doing good in the industry: 79.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.31% over the past 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 -6.74% in the past year.
The Revenue has been decreasing by -1.62% on average over the past years.
EPS 1Y (TTM)7.31%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%-26.56%
Revenue 1Y (TTM)-6.74%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-6.42%
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 2.61% 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-8.57%
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
EPS Next 5YN/A
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
A Price/Earnings ratio of 9.45 indicates a reasonable valuation of TDC.
91.07% of the companies in the same industry are more expensive than TDC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. TDC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.52, the valuation of TDC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TDC is valued cheaper than 92.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. TDC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaper than 93.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TDC is valued cheaper than 97.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.98 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
The decent profitability rating of TDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
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 |
22.21
+0.4 (+1.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.64%
Inst Owner Change-0.15%
Ins Owners1.9%
Ins Owner Change14.52%
Market Cap2.10B
Analysts68
Price Target24.93 (12.25%)
Short Float %7.74%
Short Ratio7.44
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)15.89%
Min EPS beat(2)15.81%
Max EPS beat(2)15.96%
EPS beat(4)4
Avg EPS beat(4)18.53%
Min EPS beat(4)15.81%
Max EPS beat(4)21.62%
EPS beat(8)7
Avg EPS beat(8)14.41%
EPS beat(12)10
Avg EPS beat(12)11.52%
EPS beat(16)14
Avg EPS beat(16)18.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)1%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)4.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.63%
Revenue beat(12)5
Avg Revenue beat(12)-0.12%
Revenue beat(16)6
Avg Revenue beat(16)-0.47%
PT rev (1m)0%
PT rev (3m)-4.89%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-8.01%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 9.52 | ||
| P/S | 1.25 | ||
| P/FCF | 7.98 | ||
| P/OCF | 7.39 | ||
| P/B | 11.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.09 |
EPS(TTM)2.35
EY10.58%
EPS(NY)2.33
Fwd EY10.51%
FCF(TTM)2.78
FCFY12.53%
OCF(TTM)3.01
OCFY13.53%
SpS17.72
BVpS1.86
TBVpS-2.37
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 62.5% | ||
| ROCE | 22.65% | ||
| ROIC | 13.87% | ||
| ROICexc | 24.76% | ||
| ROICexgc | 166.26% | ||
| OM | 11.34% | ||
| PM (TTM) | 6.57% | ||
| GM | 58.93% | ||
| FCFM | 15.7% |
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%
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 23.33% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.43% | ||
| Profit Quality | 239.09% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.46 |
F-Score7
WACC10.19%
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)7.31%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%-26.56%
EPS Next Y-8.57%
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.74%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-6.42%
Revenue Next Year-6.77%
Revenue Next 2Y-3.65%
Revenue Next 3Y-2.15%
Revenue Next 5Y0.3%
EBIT growth 1Y1.06%
EBIT growth 3Y-3.28%
EBIT growth 5Y83.67%
EBIT Next Year16.39%
EBIT Next 3Y7.08%
EBIT Next 5YN/A
FCF growth 1Y-12.91%
FCF growth 3Y-13.77%
FCF growth 5Y25.49%
OCF growth 1Y-11.53%
OCF growth 3Y-13.18%
OCF growth 5Y15.41%