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NCR CORPORATION (NCR) Stock Fundamental Analysis

NYSE:NCR - New York Stock Exchange, Inc. - US62886E1082 - Common Stock - Currency: USD

27.08  +0.85 (+3.24%)

After market: 27.12 +0.04 (+0.15%)

Fundamental Rating

4

NCR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. NCR has a medium profitability rating, but doesn't score so well on its financial health evaluation. NCR scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year NCR was profitable.
NCR had a positive operating cash flow in the past year.
In multiple years NCR reported negative net income over the last 5 years.
NCR had a positive operating cash flow in each of the past 5 years.
NCR Yearly Net Income VS EBIT VS OCF VS FCFNCR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M 800M 1B

1.2 Ratios

NCR's Return On Assets of 0.58% is fine compared to the rest of the industry. NCR outperforms 75.27% of its industry peers.
NCR has a better Return On Equity (3.55%) than 79.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.51%, NCR belongs to the top of the industry, outperforming 84.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NCR is significantly below the industry average of 12.05%.
The 3 year average ROIC (4.72%) for NCR is below the current ROIC(6.51%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.58%
ROE 3.55%
ROIC 6.51%
ROA(3y)-0.08%
ROA(5y)0.61%
ROE(3y)-0.18%
ROE(5y)3.77%
ROIC(3y)4.72%
ROIC(5y)5.87%
NCR Yearly ROA, ROE, ROICNCR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20 30

1.3 Margins

NCR has a better Profit Margin (0.83%) than 75.27% of its industry peers.
NCR's Profit Margin has declined in the last couple of years.
NCR has a Operating Margin of 9.04%. This is amongst the best in the industry. NCR outperforms 82.08% of its industry peers.
In the last couple of years the Operating Margin of NCR has declined.
With a Gross Margin value of 25.20%, NCR is not doing good in the industry: 84.23% of the companies in the same industry are doing better.
NCR's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 9.04%
PM (TTM) 0.83%
GM 25.2%
OM growth 3Y-7.58%
OM growth 5Y-7.6%
PM growth 3Y-55.96%
PM growth 5Y-21.55%
GM growth 3Y-5.17%
GM growth 5Y-3.61%
NCR Yearly Profit, Operating, Gross MarginsNCR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20

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1

2. Health

2.1 Basic Checks

NCR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NCR has more shares outstanding
Compared to 1 year ago, NCR has a worse debt to assets ratio.
NCR Yearly Shares OutstandingNCR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
NCR Yearly Total Debt VS Total AssetsNCR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

NCR has an Altman-Z score of 1.31. This is a bad value and indicates that NCR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.31, NCR perfoms like the industry average, outperforming 45.52% of the companies in the same industry.
The Debt to FCF ratio of NCR is 12.32, which is on the high side as it means it would take NCR, 12.32 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NCR (12.32) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.90 is on the high side and indicates that NCR has dependencies on debt financing.
NCR's Debt to Equity ratio of 2.90 is on the low side compared to the rest of the industry. NCR is outperformed by 84.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.9
Debt/FCF 12.32
Altman-Z 1.31
ROIC/WACC0.73
WACC8.89%
NCR Yearly LT Debt VS Equity VS FCFNCR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 1.11 indicates that NCR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, NCR is not doing good in the industry: 72.04% of the companies in the same industry are doing better.
NCR has a Quick Ratio of 1.11. This is a bad value and indicates that NCR is not financially healthy enough and could expect problems in meeting its short term obligations.
NCR has a Quick ratio of 0.84. This is amonst the worse of the industry: NCR underperforms 81.72% of its industry peers.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 0.84
NCR Yearly Current Assets VS Current LiabilitesNCR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 24.10% over the past year.
NCR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.91% yearly.
Looking at the last year, NCR shows a small growth in Revenue. The Revenue has grown by 0.77% in the last year.
Measured over the past years, NCR shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
EPS 1Y (TTM)24.1%
EPS 3Y-2.3%
EPS 5Y-3.91%
EPS Q2Q%32.39%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y4.29%
Revenue growth 5Y3.78%
Sales Q2Q%-0.55%

3.2 Future

NCR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.06% yearly.
The Revenue is expected to grow by 3.29% on average over the next years.
EPS Next Y33.26%
EPS Next 2Y21.45%
EPS Next 3Y21.06%
EPS Next 5YN/A
Revenue Next Year1.74%
Revenue Next 2Y2.97%
Revenue Next 3Y3.29%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
NCR Yearly Revenue VS EstimatesNCR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
NCR Yearly EPS VS EstimatesNCR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

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9

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.76, the valuation of NCR can be described as reasonable.
NCR's Price/Earnings ratio is rather cheap when compared to the industry. NCR is cheaper than 94.62% of the companies in the same industry.
NCR is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.98 indicates a rather cheap valuation of NCR.
NCR's Price/Forward Earnings ratio is rather cheap when compared to the industry. NCR is cheaper than 94.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NCR to the average of the S&P500 Index (35.29), we can say NCR is valued rather cheaply.
Industry RankSector Rank
PE 8.76
Fwd PE 6.98
NCR Price Earnings VS Forward Price EarningsNCR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NCR is valued cheaper than 96.77% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NCR indicates a rather cheap valuation: NCR is cheaper than 95.34% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.67
EV/EBITDA 6.55
NCR Per share dataNCR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NCR's earnings are expected to grow with 21.06% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y21.45%
EPS Next 3Y21.06%

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0

5. Dividend

5.1 Amount

NCR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NCR CORPORATION

NYSE:NCR (10/16/2023, 8:04:00 PM)

After market: 27.12 +0.04 (+0.15%)

27.08

+0.85 (+3.24%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-23 2023-10-23/amc
Earnings (Next)02-05 2024-02-05/amc
Inst Owners105.83%
Inst Owner Change-0.79%
Ins Owners3.05%
Ins Owner Change0%
Market Cap3.82B
Analysts78.18
Price Target33.66 (24.3%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP23.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.44%
Min EPS beat(2)13.62%
Max EPS beat(2)39.26%
EPS beat(4)3
Avg EPS beat(4)12.93%
Min EPS beat(4)-3.6%
Max EPS beat(4)39.26%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)1.67%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.67%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.87%
PT rev (3m)4.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.45%
EPS NY rev (1m)0%
EPS NY rev (3m)8.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE 8.76
Fwd PE 6.98
P/S 0.49
P/FCF 8.67
P/OCF 4.5
P/B 2.09
P/tB N/A
EV/EBITDA 6.55
EPS(TTM)3.09
EY11.41%
EPS(NY)3.88
Fwd EY14.33%
FCF(TTM)3.12
FCFY11.53%
OCF(TTM)6.01
OCFY22.2%
SpS55.77
BVpS12.99
TBVpS-26.81
PEG (NY)0.26
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.58%
ROE 3.55%
ROCE 8.23%
ROIC 6.51%
ROICexc 6.95%
ROICexgc 22.74%
OM 9.04%
PM (TTM) 0.83%
GM 25.2%
FCFM 5.6%
ROA(3y)-0.08%
ROA(5y)0.61%
ROE(3y)-0.18%
ROE(5y)3.77%
ROIC(3y)4.72%
ROIC(5y)5.87%
ROICexc(3y)4.99%
ROICexc(5y)6.3%
ROICexgc(3y)14.88%
ROICexgc(5y)17.62%
ROCE(3y)5.97%
ROCE(5y)7.43%
ROICexcg growth 3Y-4.9%
ROICexcg growth 5Y-9.88%
ROICexc growth 3Y-13.74%
ROICexc growth 5Y-12.55%
OM growth 3Y-7.58%
OM growth 5Y-7.6%
PM growth 3Y-55.96%
PM growth 5Y-21.55%
GM growth 3Y-5.17%
GM growth 5Y-3.61%
F-Score7
Asset Turnover0.7
Health
Industry RankSector Rank
Debt/Equity 2.9
Debt/FCF 12.32
Debt/EBITDA 4.01
Cap/Depr 65.96%
Cap/Sales 5.18%
Interest Coverage 250
Cash Conversion 63.83%
Profit Quality 676.92%
Current Ratio 1.11
Quick Ratio 0.84
Altman-Z 1.31
F-Score7
WACC8.89%
ROIC/WACC0.73
Cap/Depr(3y)67.12%
Cap/Depr(5y)79%
Cap/Sales(3y)4.64%
Cap/Sales(5y)4.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.1%
EPS 3Y-2.3%
EPS 5Y-3.91%
EPS Q2Q%32.39%
EPS Next Y33.26%
EPS Next 2Y21.45%
EPS Next 3Y21.06%
EPS Next 5YN/A
Revenue 1Y (TTM)0.77%
Revenue growth 3Y4.29%
Revenue growth 5Y3.78%
Sales Q2Q%-0.55%
Revenue Next Year1.74%
Revenue Next 2Y2.97%
Revenue Next 3Y3.29%
Revenue Next 5YN/A
EBIT growth 1Y41.43%
EBIT growth 3Y-3.61%
EBIT growth 5Y-4.11%
EBIT Next Year66.78%
EBIT Next 3Y15.86%
EBIT Next 5YN/A
FCF growth 1Y25%
FCF growth 3Y-43.35%
FCF growth 5Y-35.65%
OCF growth 1Y37.72%
OCF growth 3Y-10.92%
OCF growth 5Y-10.58%