TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
29.77 USD
-1.13 (-3.66%)
29.77 USD
0 (0%)
Taking everything into account, TDC scores 5 out of 10 in our fundamental rating. TDC was compared to 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.
- TDC had a positive operating cash flow in the past year.
- TDC had positive earnings in each of the past 5 years.
- TDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TDC's Return On Assets of 6.70% is fine compared to the rest of the industry. TDC outperforms 75.36% of its industry peers.
- Looking at the Return On Equity, with a value of 53.88%, TDC belongs to the top 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 3 year average ROIC (12.22%) for TDC is below the current ROIC(13.90%), indicating increased profibility in the last year.
| 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's Profit Margin of 7.15% is fine compared to the rest of the industry. TDC outperforms 67.03% of its industry peers.
- In the last couple of years the Profit Margin of TDC has declined.
- With a decent Operating Margin value of 11.75%, TDC is doing good in the industry, outperforming 77.54% 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 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
- 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.
- The number of shares outstanding for TDC has been reduced compared to 5 years ago.
- 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: 65.22% 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.
- With a decent Debt to FCF ratio value of 2.00, TDC is doing good in the industry, outperforming 68.12% of the companies in the same industry.
- A Debt/Equity ratio of 2.21 is on the high side and indicates that TDC has dependencies on debt financing.
- TDC's Debt to Equity ratio of 2.21 is on the low side compared to the rest of the industry. TDC is outperformed by 82.25% of its industry peers.
- 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/WACC1.34
WACC10.37%
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.
- TDC's Current ratio of 0.90 is on the low side compared to the rest of the industry. TDC is outperformed by 79.35% of its industry peers.
- 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.
- TDC's Quick ratio of 0.89 is on the low side compared to the rest of the industry. TDC is outperformed by 80.43% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 18.27% on average over the past years. This is quite good.
- 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.
- 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-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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- TDC is valuated correctly with a Price/Earnings ratio of 12.51.
- TDC's Price/Earnings ratio is rather cheap when compared to the industry. TDC is cheaper than 85.51% 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 27.47.
- Based on the Price/Forward Earnings ratio of 11.67, the valuation of TDC can be described as reasonable.
- TDC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TDC is cheaper than 85.51% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, TDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 11.67 |
4.2 Price Multiples
- TDC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TDC is cheaper than 86.59% of the companies in the same industry.
- 92.39% 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 | 9.84 | ||
| EV/EBITDA | 10.74 |
4.3 Compensation for Growth
- The decent profitability rating of TDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.68
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% |
29.77
-1.13 (-3.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners105.63%
Inst Owner Change0.01%
Ins Owners1.89%
Ins Owner Change-0.85%
Market Cap2.77B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts70.67
Price Target30.09 (1.07%)
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 | 12.51 | ||
| Fwd PE | 11.67 | ||
| P/S | 1.68 | ||
| P/FCF | 9.84 | ||
| P/OCF | 9.22 | ||
| P/B | 12.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.74 |
EPS(TTM)2.38
EY7.99%
EPS(NY)2.55
Fwd EY8.57%
FCF(TTM)3.03
FCFY10.16%
OCF(TTM)3.23
OCFY10.85%
SpS17.71
BVpS2.35
TBVpS-1.93
PEG (NY)N/A
PEG (5Y)0.68
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
WACC10.37%
ROIC/WACC1.34
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 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.