TERADATA CORP (TDC) Stock Fundamental Analysis
NYSE:TDC - US88076W1036 - Common Stock
21.41 USD
+0.68 (+3.28%)
21.41 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TDC. TDC was compared to 283 industry peers in the Software industry. While TDC has a great profitability rating, there are quite some concerns on its financial health. TDC is valued quite cheap, but it does not seem to be growing.
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.
Each year in the past 5 years TDC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.33%, TDC is doing good in the industry, outperforming 75.97% of the companies in the same industry.
TDC has a better Return On Equity (62.50%) than 97.53% of its industry peers.
TDC's Return On Invested Capital of 13.87% is amongst the best of the industry. TDC outperforms 91.17% of its industry peers.
TDC had an Average Return On Invested Capital over the past 3 years of 12.22%. This is in line with the industry average of 11.99%.
The 3 year average ROIC (12.22%) for TDC is below the current ROIC(13.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 62.5% | ||
| ROIC | 13.87% |
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 6.57%, TDC is in the better half of the industry, outperforming 71.02% of the companies in the same industry.
TDC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.34%, TDC is in the better half of the industry, outperforming 76.68% of the companies in the same industry.
In the last couple of years the Operating Margin of TDC has grown nicely.
Looking at the Gross Margin, with a value of 58.93%, TDC is doing worse than 63.25% of the companies in the same industry.
In the last couple of years the Gross Margin of TDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.34% | ||
| PM (TTM) | 6.57% | ||
| GM | 58.93% |
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
TDC has an Altman-Z score of 0.45. This is a bad value and indicates that TDC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.45, TDC is not doing good in the industry: 68.20% of the companies in the same industry are doing better.
The Debt to FCF ratio of TDC is 2.18, which is a good value as it means it would take TDC, 2.18 years of fcf income to pay off all of its debts.
TDC has a Debt to FCF ratio of 2.18. This is in the better half of the industry: TDC outperforms 67.49% of its industry peers.
TDC has a Debt/Equity ratio of 2.78. This is a high value indicating a heavy dependency on external financing.
TDC has a worse Debt to Equity ratio (2.78) than 81.63% 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 | 2.78 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 0.45 |
ROIC/WACC1.34
WACC10.37%
2.3 Liquidity
TDC has a Current Ratio of 0.84. 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 Current ratio value of 0.84, TDC is not doing good in the industry: 78.80% of the companies in the same industry are doing better.
TDC has a Quick Ratio of 0.84. 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 has a worse Quick ratio (0.84) than 78.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.31% over the past year.
The Earnings Per Share has been growing by 18.27% on average over the past years. This is quite good.
TDC shows a decrease in Revenue. In the last year, the revenue decreased by -6.74%.
The Revenue has been decreasing by -1.62% on average over the past years.
EPS 1Y (TTM)7.31%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%-26.56%
Revenue 1Y (TTM)-6.74%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-6.42%
3.2 Future
The Earnings Per Share is expected to grow by 2.61% 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-8.57%
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
EPS Next 5YN/A
Revenue Next Year-6.83%
Revenue Next 2Y-3.65%
Revenue Next 3Y-2.15%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.11, the valuation of TDC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 91.52% of the companies listed in the same industry.
TDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
The Price/Forward Earnings ratio is 9.17, which indicates a very decent valuation of TDC.
Based on the Price/Forward Earnings ratio, TDC is valued cheaper than 92.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. TDC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 92.58% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 96.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.69 | ||
| EV/EBITDA | 7.96 |
4.3 Compensation for Growth
The decent profitability rating of TDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
5. Dividend
5.1 Amount
TDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.41
+0.68 (+3.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.64%
Inst Owner Change-0.15%
Ins Owners1.9%
Ins Owner Change19.99%
Market Cap2.02B
Analysts68
Price Target24.93 (16.44%)
Short Float %7.04%
Short Ratio6.01
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)15.89%
Min EPS beat(2)15.81%
Max EPS beat(2)15.96%
EPS beat(4)4
Avg EPS beat(4)18.53%
Min EPS beat(4)15.81%
Max EPS beat(4)21.62%
EPS beat(8)7
Avg EPS beat(8)14.41%
EPS beat(12)10
Avg EPS beat(12)11.52%
EPS beat(16)14
Avg EPS beat(16)18.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)1%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)4.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.63%
Revenue beat(12)5
Avg Revenue beat(12)-0.12%
Revenue beat(16)6
Avg Revenue beat(16)-0.47%
PT rev (1m)0%
PT rev (3m)-14.53%
EPS NQ rev (1m)-7.25%
EPS NQ rev (3m)-6.64%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 9.17 | ||
| P/S | 1.21 | ||
| P/FCF | 7.69 | ||
| P/OCF | 7.12 | ||
| P/B | 11.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.96 |
EPS(TTM)2.35
EY10.98%
EPS(NY)2.33
Fwd EY10.9%
FCF(TTM)2.78
FCFY13%
OCF(TTM)3.01
OCFY14.04%
SpS17.72
BVpS1.86
TBVpS-2.37
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 62.5% | ||
| ROCE | 22.65% | ||
| ROIC | 13.87% | ||
| ROICexc | 24.76% | ||
| ROICexgc | 166.26% | ||
| OM | 11.34% | ||
| PM (TTM) | 6.57% | ||
| GM | 58.93% | ||
| FCFM | 15.7% |
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%
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 23.33% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.43% | ||
| Profit Quality | 239.09% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.45 |
F-Score7
WACC10.37%
ROIC/WACC1.34
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)7.31%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%-26.56%
EPS Next Y-8.57%
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.74%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-6.42%
Revenue Next Year-6.83%
Revenue Next 2Y-3.65%
Revenue Next 3Y-2.15%
Revenue Next 5Y0.3%
EBIT growth 1Y1.06%
EBIT growth 3Y-3.28%
EBIT growth 5Y83.67%
EBIT Next Year16.39%
EBIT Next 3Y7.08%
EBIT Next 5YN/A
FCF growth 1Y-12.91%
FCF growth 3Y-13.77%
FCF growth 5Y25.49%
OCF growth 1Y-11.53%
OCF growth 3Y-13.18%
OCF growth 5Y15.41%