TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
31.3 USD
-0.51 (-1.6%)
31.3 USD
0 (0%)
We assign a fundamental rating of 4 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
TDC had positive earnings in each of the past 5 years.
In the past 5 years TDC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.70%, TDC is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
The Return On Equity of TDC (53.88%) is better than 97.14% of its industry peers.
TDC has a Return On Invested Capital of 13.90%. This is amongst the best in the industry. TDC outperforms 91.43% 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 10.98%.
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
With a decent Profit Margin value of 7.15%, TDC is doing good in the industry, outperforming 67.50% of the companies in the same industry.
TDC's Profit Margin has declined in the last couple of years.
The Operating Margin of TDC (11.75%) is better than 76.79% 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 62.86% 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
TDC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TDC has been reduced compared to 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
Based on the Altman-Z score of 0.86, we must say that TDC is in the distress zone and has some risk of bankruptcy.
TDC has a Altman-Z score of 0.86. This is in the lower half of the industry: TDC underperforms 64.29% of its industry peers.
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 Debt to FCF ratio of 2.00. This is in the better half of the industry: TDC outperforms 68.57% 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.
TDC has a worse Debt to Equity ratio (2.21) than 81.43% 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 | 0.86 |
ROIC/WACC1.35
WACC10.29%
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 78.57% of its industry peers.
A Quick Ratio of 0.89 indicates that TDC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.89, TDC is doing worse than 79.64% of the companies in the same industry.
| 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.
TDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.27% yearly.
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
Based on estimates for the next years, TDC will show a small growth in Earnings Per Share. The EPS will grow by 6.63% 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-0.74%
EPS Next 2Y2.42%
EPS Next 3Y4.04%
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.
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
With a Price/Earnings ratio of 13.15, TDC is valued correctly.
Based on the Price/Earnings ratio, TDC is valued cheaper than 85.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. TDC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.28 indicates a correct valuation of TDC.
Based on the Price/Forward Earnings ratio, TDC is valued cheaper than 84.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, TDC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaper than 87.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TDC is valued cheaper than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.34 | ||
| EV/EBITDA | 11.04 |
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)0.72
EPS Next 2Y2.42%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.3
-0.51 (-1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.35%
Inst Owner Change2.79%
Ins Owners1.89%
Ins Owner Change1.9%
Market Cap2.92B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts70.67
Price Target28.36 (-9.39%)
Short Float %8.12%
Short Ratio4.8
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)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)13.73%
PT rev (3m)13.73%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)8.56%
EPS NY rev (3m)8.56%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.28 | ||
| P/S | 1.77 | ||
| P/FCF | 10.34 | ||
| P/OCF | 9.69 | ||
| P/B | 13.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.04 |
EPS(TTM)2.38
EY7.6%
EPS(NY)2.55
Fwd EY8.14%
FCF(TTM)3.03
FCFY9.67%
OCF(TTM)3.23
OCFY10.32%
SpS17.71
BVpS2.35
TBVpS-1.93
PEG (NY)N/A
PEG (5Y)0.72
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 | 0.86 |
F-Score7
WACC10.29%
ROIC/WACC1.35
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-0.74%
EPS Next 2Y2.42%
EPS Next 3Y4.04%
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 4 / 10 to TDC.
What is the valuation status of TERADATA CORP (TDC) stock?
ChartMill assigns a valuation rating of 6 / 10 to TERADATA CORP (TDC). This can be considered as Fairly Valued.
How profitable is TERADATA CORP (TDC) stock?
TERADATA CORP (TDC) has a profitability rating of 7 / 10.
What is the valuation of TERADATA CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TERADATA CORP (TDC) is 13.15 and the Price/Book (PB) ratio is 13.32.
What is the earnings growth outlook for TERADATA CORP?
The Earnings per Share (EPS) of TERADATA CORP (TDC) is expected to decline by -0.74% in the next year.