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TERADATA CORP (TDC) Stock Fundamental Analysis

NYSE:TDC - New York Stock Exchange, Inc. - US88076W1036 - Common Stock - Currency: USD

30.89  -0.04 (-0.13%)

Premarket: 25.5 -5.39 (-17.45%)

Fundamental Rating

5

Taking everything into account, TDC scores 5 out of 10 in our fundamental rating. TDC was compared to 283 industry peers in the Software industry. While TDC belongs to the best of the industry regarding profitability, there are concerns on its financial health. TDC has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

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8

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.
Of the past 5 years TDC 4 years were profitable.
Of the past 5 years TDC 4 years had a positive operating cash flow.
TDC Yearly Net Income VS EBIT VS OCF VS FCFTDC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

TDC has a Return On Assets of 4.94%. This is in the better half of the industry: TDC outperforms 75.00% of its industry peers.
TDC has a better Return On Equity (65.60%) than 98.19% of its industry peers.
The Return On Invested Capital of TDC (21.87%) is better than 94.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TDC is above the industry average of 11.99%.
The 3 year average ROIC (14.00%) for TDC is below the current ROIC(21.87%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.94%
ROE 65.6%
ROIC 21.87%
ROA(3y)3.91%
ROA(5y)3.33%
ROE(3y)30.22%
ROE(5y)23.06%
ROIC(3y)14%
ROIC(5y)8.74%
TDC Yearly ROA, ROE, ROICTDC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

1.3 Margins

Looking at the Profit Margin, with a value of 4.56%, TDC is in the better half of the industry, outperforming 67.75% of the companies in the same industry.
In the last couple of years the Profit Margin of TDC has grown nicely.
With an excellent Operating Margin value of 12.07%, TDC belongs to the best of the industry, outperforming 80.07% of the companies in the same industry.
TDC's Operating Margin has improved in the last couple of years.
TDC has a Gross Margin of 60.79%. This is comparable to the rest of the industry: TDC outperforms 40.22% of its industry peers.
In the last couple of years the Gross Margin of TDC has grown nicely.
Industry RankSector Rank
OM 12.07%
PM (TTM) 4.56%
GM 60.79%
OM growth 3Y126.66%
OM growth 5Y38.56%
PM growth 3Y-21.63%
PM growth 5Y19.53%
GM growth 3Y3.1%
GM growth 5Y5.11%
TDC Yearly Profit, Operating, Gross MarginsTDC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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3

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.
There is no outstanding debt for TDC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TDC Yearly Shares OutstandingTDC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
TDC Yearly Total Debt VS Total AssetsTDC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

TDC has an Altman-Z score of 0.94. This is a bad value and indicates that TDC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.94, TDC is doing worse than 65.94% of the companies in the same industry.
TDC has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
TDC has a better Debt to FCF ratio (1.97) than 66.30% of its industry peers.
A Debt/Equity ratio of 4.01 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 4.01, TDC is doing worse than 86.59% 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 RankSector Rank
Debt/Equity 4.01
Debt/FCF 1.97
Altman-Z 0.94
ROIC/WACC1.61
WACC13.55%
TDC Yearly LT Debt VS Equity VS FCFTDC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.3 Liquidity

TDC has a Current Ratio of 0.80. 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 worse Current ratio (0.80) than 82.97% of its industry peers.
A Quick Ratio of 0.79 indicates that TDC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, TDC is doing worse than 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.79
TDC Yearly Current Assets VS Current LiabilitesTDC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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3

3. Growth

3.1 Past

TDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.39%, which is quite good.
The Earnings Per Share has been growing by 18.27% on average over the past years. This is quite good.
EPS 1Y (TTM)17.39%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%-5.36%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-10.5%

3.2 Future

The Earnings Per Share is expected to grow by 7.23% 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 3.01% on average per year.
EPS Next Y2.36%
EPS Next 2Y7.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.44%
Revenue Next 2Y-0.71%
Revenue Next 3Y3.47%
Revenue Next 5Y3.01%

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.
TDC Yearly Revenue VS EstimatesTDC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B 2B 2.5B
TDC Yearly EPS VS EstimatesTDC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0.5 1 1.5 2 2.5

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7

4. Valuation

4.1 Price/Earnings Ratio

TDC is valuated correctly with a Price/Earnings ratio of 12.71.
Based on the Price/Earnings ratio, TDC is valued cheaper than 90.94% of the companies in the same industry.
TDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.39.
With a Price/Forward Earnings ratio of 12.42, TDC is valued correctly.
Based on the Price/Forward Earnings ratio, TDC is valued cheaply inside the industry as 92.75% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 94.38. TDC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.71
Fwd PE 12.42
TDC Price Earnings VS Forward Price EarningsTDC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaper than 94.57% of the companies in the same industry.
95.65% of the companies in the same industry are more expensive than TDC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.95
EV/EBITDA 9.83
TDC Per share dataTDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TDC does not grow enough to justify the current Price/Earnings ratio.
TDC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.39
PEG (5Y)0.7
EPS Next 2Y7.23%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

TDC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TERADATA CORP

NYSE:TDC (2/11/2025, 8:04:00 PM)

Premarket: 25.5 -5.39 (-17.45%)

30.89

-0.04 (-0.13%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11 2025-02-11/amc
Earnings (Next)N/A N/A
Inst Owners93.19%
Inst Owner Change-11.24%
Ins Owners0.93%
Ins Owner Change-2.64%
Market Cap2.96B
Analysts68.75
Price Target33.66 (8.97%)
Short Float %3.89%
Short Ratio4.84
Dividend
Industry RankSector 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)26.92%
Min EPS beat(2)21.62%
Max EPS beat(2)32.21%
EPS beat(4)4
Avg EPS beat(4)15.97%
Min EPS beat(4)2.04%
Max EPS beat(4)32.21%
EPS beat(8)6
Avg EPS beat(8)10%
EPS beat(12)10
Avg EPS beat(12)17.26%
EPS beat(16)14
Avg EPS beat(16)24.46%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)4.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)4.48%
Revenue beat(8)4
Avg Revenue beat(8)0.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.27%
Revenue beat(16)8
Avg Revenue beat(16)0.3%
PT rev (1m)-5.71%
PT rev (3m)-12.39%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 12.71
Fwd PE 12.42
P/S 1.64
P/FCF 9.95
P/OCF 9.15
P/B 23.65
P/tB N/A
EV/EBITDA 9.83
EPS(TTM)2.43
EY7.87%
EPS(NY)2.49
Fwd EY8.05%
FCF(TTM)3.1
FCFY10.05%
OCF(TTM)3.38
OCFY10.93%
SpS18.79
BVpS1.31
TBVpS-2.86
PEG (NY)5.39
PEG (5Y)0.7
Profitability
Industry RankSector Rank
ROA 4.94%
ROE 65.6%
ROCE 27.68%
ROIC 21.87%
ROICexc 39.32%
ROICexgc 463.32%
OM 12.07%
PM (TTM) 4.56%
GM 60.79%
FCFM 16.52%
ROA(3y)3.91%
ROA(5y)3.33%
ROE(3y)30.22%
ROE(5y)23.06%
ROIC(3y)14%
ROIC(5y)8.74%
ROICexc(3y)30.68%
ROICexc(5y)18.99%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.72%
ROCE(5y)11.06%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y176.63%
ROICexc growth 5Y47.73%
OM growth 3Y126.66%
OM growth 5Y38.56%
PM growth 3Y-21.63%
PM growth 5Y19.53%
GM growth 3Y3.1%
GM growth 5Y5.11%
F-Score8
Asset Turnover1.08
Health
Industry RankSector Rank
Debt/Equity 4.01
Debt/FCF 1.97
Debt/EBITDA 1.54
Cap/Depr 24.07%
Cap/Sales 1.45%
Interest Coverage 250
Cash Conversion 99.38%
Profit Quality 362.2%
Current Ratio 0.8
Quick Ratio 0.79
Altman-Z 0.94
F-Score8
WACC13.55%
ROIC/WACC1.61
Cap/Depr(3y)16.66%
Cap/Depr(5y)23.79%
Cap/Sales(3y)1.2%
Cap/Sales(5y)1.9%
Profit Quality(3y)695.89%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.39%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%-5.36%
EPS Next Y2.36%
EPS Next 2Y7.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-10.5%
Revenue Next Year-3.44%
Revenue Next 2Y-0.71%
Revenue Next 3Y3.47%
Revenue Next 5Y3.01%
EBIT growth 1Y44.67%
EBIT growth 3Y126.53%
EBIT growth 5Y34.03%
EBIT Next Year42.95%
EBIT Next 3Y13.21%
EBIT Next 5YN/A
FCF growth 1Y-19.29%
FCF growth 3Y18.01%
FCF growth 5Y11.72%
OCF growth 1Y-16.1%
OCF growth 3Y11.99%
OCF growth 5Y0.6%