TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
29.395 USD
-0.37 (-1.26%)
We assign a fundamental rating of 5 out of 10 to TDC. TDC was compared to 277 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 is cheap, 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.
- Each year in the past 5 years TDC has been profitable.
- TDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TDC has a better Return On Assets (6.70%) than 75.45% of its industry peers.
- TDC has a better Return On Equity (53.88%) than 97.11% of its industry peers.
- With an excellent Return On Invested Capital value of 13.90%, TDC belongs to the best of the industry, outperforming 91.70% 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 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
- 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.
- TDC's Profit Margin has declined in the last couple of years.
- TDC's Operating Margin of 11.75% is fine compared to the rest of the industry. TDC outperforms 77.62% of its industry peers.
- TDC's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 58.99%, TDC is not doing good in the industry: 63.54% of the companies in the same industry are doing better.
- 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.
- TDC has less shares outstanding than it did 1 year ago.
- 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 65.34% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 2.00, TDC is in the better half of the industry, outperforming 68.23% 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 has a worse Debt to Equity ratio (2.21) than 82.31% 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 | 2.21 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 0.79 |
ROIC/WACC1.33
WACC10.42%
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.
- Looking at the Current ratio, with a value of 0.90, TDC is doing worse than 79.42% of the companies in the same industry.
- 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.
- With a Quick ratio value of 0.89, TDC is not doing good in the industry: 80.51% of the companies in the same industry are doing better.
| 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.
- 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.
- 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
- 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 correctly with a Price/Earnings ratio of 12.35.
- 85.92% of the companies in the same industry are more expensive than TDC, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, TDC is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.52, the valuation of TDC can be described as very reasonable.
- 85.56% of the companies in the same industry are more expensive than TDC, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. TDC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 11.52 |
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 cheaply inside the industry as 92.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.71 | ||
| EV/EBITDA | 10.37 |
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% |
NYSE:TDC (1/20/2026, 10:18:57 AM)
29.395
-0.37 (-1.26%)
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 Change-0.71%
Ins Owners1.89%
Ins Owner Change-0.85%
Market Cap2.74B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts70.67
Price Target30.09 (2.36%)
Short Float %5.88%
Short Ratio3.42
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)6.12%
PT rev (3m)20.68%
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 | 12.35 | ||
| Fwd PE | 11.52 | ||
| P/S | 1.66 | ||
| P/FCF | 9.71 | ||
| P/OCF | 9.1 | ||
| P/B | 12.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.37 |
EPS(TTM)2.38
EY8.1%
EPS(NY)2.55
Fwd EY8.68%
FCF(TTM)3.03
FCFY10.29%
OCF(TTM)3.23
OCFY10.99%
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 | 0.79 |
F-Score7
WACC10.42%
ROIC/WACC1.33
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.