TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
29.99 USD
+0.08 (+0.27%)
Overall TDC gets a fundamental rating of 5 out of 10. We evaluated TDC against 277 industry peers in the Software industry. TDC has an excellent profitability rating, but there are concerns on its financial health. TDC has a bad growth rate and is valued cheaply.
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.
- Each year in the past 5 years TDC has been profitable.
- Each year in the past 5 years TDC had a positive operating cash flow.
1.2 Ratios
- TDC has a Return On Assets of 6.70%. This is in the better half of the industry: TDC outperforms 75.45% of its industry peers.
- TDC has a Return On Equity of 53.88%. This is amongst the best in the industry. TDC outperforms 97.11% of its industry peers.
- TDC's Return On Invested Capital of 13.90% is amongst the best of the industry. TDC outperforms 91.70% 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
- Looking at the Profit Margin, with a value of 7.15%, TDC is in the better half of the industry, outperforming 67.15% of the companies in the same industry.
- In the last couple of years the Profit Margin of TDC has declined.
- TDC has a better Operating Margin (11.75%) than 77.62% of its industry peers.
- TDC's Operating Margin has improved in the last couple of years.
- TDC has a worse Gross Margin (58.99%) than 63.54% 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.
- Compared to 1 year ago, TDC has less shares outstanding
- 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 0.79. 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 0.79, TDC is doing worse than 65.70% of the companies in the same industry.
- 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.
- TDC has a better Debt to FCF ratio (2.00) than 68.23% of its industry peers.
- TDC has a Debt/Equity ratio of 2.21. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.21, TDC is doing worse than 82.31% of the companies in the same industry.
- 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 | 0.79 |
ROIC/WACC1.34
WACC10.41%
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.
- With a Current ratio value of 0.90, TDC is not doing good in the industry: 79.42% of the companies in the same industry are doing better.
- A Quick Ratio of 0.89 indicates that TDC may have some problems paying its short term obligations.
- TDC's Quick ratio of 0.89 is on the low side compared to the rest of the industry. TDC is outperformed by 80.51% of its industry peers.
| 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.
- Looking at the last year, TDC shows a decrease in Revenue. The Revenue has decreased by -8.18% in the last year.
- TDC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.62% yearly.
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.
- TDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.30% yearly.
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
- The Price/Earnings ratio is 12.60, which indicates a correct valuation of TDC.
- Based on the Price/Earnings ratio, TDC is valued cheaper than 85.92% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. TDC is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.75 indicates a reasonable valuation of TDC.
- 85.56% of the companies in the same industry are more expensive than TDC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, TDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaply inside the industry as 87.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, TDC is valued cheaper than 92.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.91 | ||
| EV/EBITDA | 10.41 |
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)0.69
EPS Next 2Y2.48%
EPS Next 3Y4.06%
5. Dividend
5.1 Amount
- TDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TERADATA CORP / TDC FAQ
What is the fundamental rating for TDC stock?
ChartMill assigns a fundamental rating of 5 / 10 to TDC.
Can you provide the valuation status for TERADATA CORP?
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.
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.