TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
29.67 USD
+0.09 (+0.3%)
TDC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 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.
- 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
- The Return On Assets of TDC (6.70%) is better than 75.54% of its industry peers.
- With an excellent Return On Equity value of 53.88%, TDC belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
- The Return On Invested Capital of TDC (13.90%) is better than 91.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TDC is in line with the industry average of 10.76%.
- 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 has a better Profit Margin (7.15%) than 66.55% of its industry peers.
- TDC's Profit Margin has declined in the last couple of years.
- TDC has a Operating Margin of 11.75%. This is in the better half of the industry: TDC outperforms 77.34% of its industry peers.
- In the last couple of years the Operating Margin of TDC has grown nicely.
- TDC has a worse Gross Margin (58.99%) than 63.67% 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.
- Compared to 1 year ago, TDC has less shares outstanding
- 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
- Based on the Altman-Z score of 0.78, we must say that TDC is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.78, TDC is not doing good in the industry: 65.83% 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.
- Looking at the Debt to FCF ratio, with a value of 2.00, TDC is in the better half of the industry, outperforming 67.99% of the companies in the same industry.
- 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 82.73% 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 | 0.78 |
ROIC/WACC1.34
WACC10.38%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that TDC may have some problems paying its short term obligations.
- The Current ratio of TDC (0.90) is worse than 79.14% 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 79.86% 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.
- 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.
- The Revenue has been decreasing by -1.62% on average over the past years.
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
- TDC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.63% yearly.
- The Revenue is expected to grow by 0.30% on average over the next years.
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-2.11%
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
- TDC is valuated correctly with a Price/Earnings ratio of 12.47.
- 86.33% 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 28.82, TDC is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.63, the valuation of TDC can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, TDC is valued cheaper than 85.61% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TDC to the average of the S&P500 Index (25.95), we can say TDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 11.63 |
4.2 Price Multiples
- 88.13% of the companies in the same industry are more expensive than TDC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 92.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| EV/EBITDA | 10.3 |
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)0.68
EPS Next 2Y2.48%
EPS Next 3Y4.06%
5. Dividend
5.1 Amount
- No dividends for TDC!.
| 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.