TERADATA CORP (TDC) Stock Fundamental Analysis
NYSE:TDC - New York Stock Exchange, Inc. - US88076W1036 - Common Stock - Currency: USD
Overall TDC gets a fundamental rating of 5 out of 10. We evaluated TDC against 285 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.
TDC had a positive operating cash flow in the past year.
In the past 5 years TDC has always been profitable.
In the past 5 years TDC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.69%, TDC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
TDC has a better Return On Equity (85.71%) than 98.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.54%, TDC belongs to the top of the industry, outperforming 92.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TDC is in line with the industry average of 11.46%.
The 3 year average ROIC (12.22%) for TDC is below the current ROIC(16.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 85.71% | ||
| ROIC | 16.54% |
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 (6.51%) than 70.88% of its industry peers.
TDC's Profit Margin has declined in the last couple of years.
TDC's Operating Margin of 11.94% is amongst the best of the industry. TDC outperforms 80.35% of its industry peers.
In the last couple of years the Operating Margin of TDC has grown nicely.
TDC has a Gross Margin of 60.46%. This is comparable to the rest of the industry: TDC outperforms 42.11% of its industry peers.
In the last couple of years the Gross Margin of TDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.94% | ||
| PM (TTM) | 6.51% | ||
| GM | 60.46% |
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
TDC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
TDC has an Altman-Z score of 0.47. This is a bad value and indicates that TDC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TDC (0.47) is worse than 64.91% of its industry peers.
TDC has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as TDC would need 2.05 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.05, TDC is doing good in the industry, outperforming 67.37% of the companies in the same industry.
TDC has a Debt/Equity ratio of 3.65. This is a high value indicating a heavy dependency on external financing.
TDC's Debt to Equity ratio of 3.65 is on the low side compared to the rest of the industry. TDC is outperformed by 82.81% 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 | 3.65 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 0.47 |
ROIC/WACC1.64
WACC10.08%
2.3 Liquidity
TDC has a Current Ratio of 0.81. This is a bad value and indicates that TDC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TDC (0.81) is worse than 82.46% of its industry peers.
TDC has a Quick Ratio of 0.81. 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 0.79, TDC is doing worse than 83.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 |
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.
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 -4.53% in the past year.
TDC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.62% yearly.
EPS 1Y (TTM)17.39%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%-5.36%
Revenue 1Y (TTM)-4.53%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-10.5%
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 2.09% on average per year.
The Revenue is expected to grow by 1.50% on average over the next years.
EPS Next Y-8.96%
EPS Next 2Y-0.69%
EPS Next 3Y2.09%
EPS Next 5YN/A
Revenue Next Year-7.28%
Revenue Next 2Y-3.45%
Revenue Next 3Y-1.82%
Revenue Next 5Y1.5%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 reasonably with a Price/Earnings ratio of 8.61.
Based on the Price/Earnings ratio, TDC is valued cheaper than 91.58% of the companies in the same industry.
TDC is valuated cheaply when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
TDC is valuated reasonably with a Price/Forward Earnings ratio of 9.46.
Based on the Price/Forward Earnings ratio, TDC is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
TDC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaper than 95.44% of the companies in the same industry.
TDC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TDC is cheaper than 97.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
TDC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-0.69%
EPS Next 3Y2.09%
5. Dividend
5.1 Amount
No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:TDC (4/23/2025, 11:18:03 AM)
20.93
+0.74 (+3.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.53%
Inst Owner Change0.46%
Ins Owners0.97%
Ins Owner Change8.55%
Market Cap2.01B
Analysts55.79
Price Target30.8 (47.16%)
Short Float %4.33%
Short Ratio3.29
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)21.18%
Min EPS beat(2)20.73%
Max EPS beat(2)21.62%
EPS beat(4)4
Avg EPS beat(4)19.15%
Min EPS beat(4)2.04%
Max EPS beat(4)32.21%
EPS beat(8)6
Avg EPS beat(8)10.79%
EPS beat(12)10
Avg EPS beat(12)10.16%
EPS beat(16)14
Avg EPS beat(16)22.52%
Revenue beat(2)1
Avg Revenue beat(2)1.04%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)4.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)4.48%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)5
Avg Revenue beat(12)-0.33%
Revenue beat(16)7
Avg Revenue beat(16)0%
PT rev (1m)0%
PT rev (3m)-13.71%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-11.68%
EPS NY rev (1m)-3.75%
EPS NY rev (3m)-11.16%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-5.14%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-4.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 9.46 | ||
| P/S | 1.15 | ||
| P/FCF | 7.26 | ||
| P/OCF | 6.63 | ||
| P/B | 15.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.75 |
EPS(TTM)2.43
EY11.61%
EPS(NY)2.21
Fwd EY10.57%
FCF(TTM)2.88
FCFY13.78%
OCF(TTM)3.15
OCFY15.07%
SpS18.22
BVpS1.38
TBVpS-2.72
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 85.71% | ||
| ROCE | 27% | ||
| ROIC | 16.54% | ||
| ROICexc | 36.16% | ||
| ROICexgc | N/A | ||
| OM | 11.94% | ||
| PM (TTM) | 6.51% | ||
| GM | 60.46% | ||
| FCFM | 15.83% |
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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.65 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 26% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 7.21 | ||
| Cash Conversion | 98.06% | ||
| Profit Quality | 242.98% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 0.47 |
F-Score7
WACC10.08%
ROIC/WACC1.64
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)17.39%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%-5.36%
EPS Next Y-8.96%
EPS Next 2Y-0.69%
EPS Next 3Y2.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.53%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-10.5%
Revenue Next Year-7.28%
Revenue Next 2Y-3.45%
Revenue Next 3Y-1.82%
Revenue Next 5Y1.5%
EBIT growth 1Y12.37%
EBIT growth 3Y-3.28%
EBIT growth 5Y83.67%
EBIT Next Year19.76%
EBIT Next 3Y7.76%
EBIT Next 5YN/A
FCF growth 1Y-21.97%
FCF growth 3Y-13.77%
FCF growth 5Y25.49%
OCF growth 1Y-19.2%
OCF growth 3Y-13.18%
OCF growth 5Y15.41%