NCR CORPORATION (NCR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NCR - US62886E1082 - Common Stock
27.08 USD
+0.85 (+3.24%)
27.12 USD
+0.04 (+0.15%)
We assign a fundamental rating of 4 out of 10 to NCR. NCR was compared to 276 industry peers in the Software industry. There are concerns on the financial health of NCR while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on NCR.
1. Profitability
1.1 Basic Checks
- NCR had positive earnings in the past year.
- NCR had a positive operating cash flow in the past year.
1.2 Ratios
- NCR has a Return On Assets of 0.58%. This is in the better half of the industry: NCR outperforms 75.27% of its industry peers.
- Looking at the Return On Equity, with a value of 3.55%, NCR is in the better half of the industry, outperforming 79.21% of the companies in the same industry.
- NCR's Return On Invested Capital of 6.51% is amongst the best of the industry. NCR outperforms 84.95% of its industry peers.
- NCR had an Average Return On Invested Capital over the past 3 years of 4.72%. This is significantly below the industry average of 10.78%.
- The last Return On Invested Capital (6.51%) for NCR is above the 3 year average (4.72%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- The Profit Margin of NCR (0.83%) is better than 75.27% of its industry peers.
- In the last couple of years the Profit Margin of NCR has declined.
- The Operating Margin of NCR (9.04%) is better than 82.08% of its industry peers.
- In the last couple of years the Operating Margin of NCR has declined.
- NCR has a worse Gross Margin (25.20%) than 84.23% of its industry peers.
- NCR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NCR is destroying value.
- Compared to 1 year ago, NCR has more shares outstanding
- NCR has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.31, we must say that NCR is in the distress zone and has some risk of bankruptcy.
- NCR has a Altman-Z score of 1.31. This is comparable to the rest of the industry: NCR outperforms 45.52% of its industry peers.
- NCR has a debt to FCF ratio of 12.32. This is a negative value and a sign of low solvency as NCR would need 12.32 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 12.32, NCR perfoms like the industry average, outperforming 55.91% of the companies in the same industry.
- A Debt/Equity ratio of 2.90 is on the high side and indicates that NCR has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.90, NCR is not doing good in the industry: 84.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.9 | ||
| Debt/FCF | 12.32 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.73
WACC8.89%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- NCR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.10%, which is quite impressive.
- Measured over the past years, NCR shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.91% on average per year.
- NCR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.77%.
- NCR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.78% yearly.
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.
- Based on estimates for the next years, NCR will show a small growth in Revenue. The Revenue will grow by 3.29% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.76, which indicates a very decent valuation of NCR.
- Based on the Price/Earnings ratio, NCR is valued cheaper than 94.62% of the companies in the same industry.
- When comparing the Price/Earnings ratio of NCR to the average of the S&P500 Index (27.54), we can say NCR is valued rather cheaply.
- NCR is valuated cheaply with a Price/Forward Earnings ratio of 6.98.
- Based on the Price/Forward Earnings ratio, NCR is valued cheaply inside the industry as 94.62% of the companies are valued more expensively.
- NCR is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NCR is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, NCR is valued cheaper than 95.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.67 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
- NCR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- NCR's earnings are expected to grow with 21.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y21.45%
EPS Next 3Y21.06%
5. Dividend
5.1 Amount
- NCR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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 Change0.01%
Ins Owners3.05%
Ins Owner Change0%
Market Cap3.82B
Revenue(TTM)7.86B
Net Income(TTM)65.00M
Analysts78.18
Price Target33.66 (24.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Graham NumberN/A
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y-4.9%
ROICexgc 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 Rank | Sector 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%
NCR CORPORATION / NCR FAQ
What is the fundamental rating for NCR stock?
ChartMill assigns a fundamental rating of 4 / 10 to NCR.
What is the valuation status of NCR CORPORATION (NCR) stock?
ChartMill assigns a valuation rating of 9 / 10 to NCR CORPORATION (NCR). This can be considered as Undervalued.
What is the profitability of NCR stock?
NCR CORPORATION (NCR) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for NCR stock?
The Price/Earnings (PE) ratio for NCR CORPORATION (NCR) is 8.76 and the Price/Book (PB) ratio is 2.09.
What is the financial health of NCR CORPORATION (NCR) stock?
The financial health rating of NCR CORPORATION (NCR) is 1 / 10.