TERADATA CORP (TDC) Stock Fundamental Analysis
USA - NYSE:TDC - US88076W1036 - Common Stock
20.85 USD
-0.04 (-0.19%)
20.85 USD
0 (0%)
Overall TDC gets a fundamental rating of 5 out of 10. We evaluated TDC against 285 industry peers in the Software industry. TDC scores excellent on profitability, but there are concerns on its financial health. TDC has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
TDC had positive earnings in the past year.
TDC had a positive operating cash flow in the past year.
Each year in the past 5 years TDC has been profitable.
In the past 5 years TDC always reported a positive cash flow from operatings.
1.2 Ratios
TDC's Return On Assets of 6.33% is fine compared to the rest of the industry. TDC outperforms 75.79% of its industry peers.
TDC has a better Return On Equity (62.50%) than 97.19% of its industry peers.
TDC has a Return On Invested Capital of 13.87%. This is amongst the best in the industry. TDC outperforms 91.23% 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 11.84%.
The last Return On Invested Capital (13.87%) for TDC is above the 3 year average (12.22%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 6.57%, TDC is doing good in the industry, outperforming 69.47% of the companies in the same industry.
TDC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 11.34%, TDC is doing good in the industry, outperforming 76.84% of the companies in the same industry.
TDC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 58.93%, TDC is not doing good in the industry: 62.81% of the companies in the same industry are doing better.
TDC's Gross Margin has improved in the last couple of years.
| 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.
TDC has less shares outstanding than it did 1 year ago.
TDC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TDC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.43, we must say that TDC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.43, TDC is not doing good in the industry: 69.47% of the companies in the same industry are doing better.
TDC has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as TDC would need 2.18 years to pay back of all of its debts.
The Debt to FCF ratio of TDC (2.18) is better than 68.07% 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 81.40% 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 | 0.43 |
ROIC/WACC1.37
WACC10.14%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TDC may have some problems paying its short term obligations.
With a Current ratio value of 0.84, TDC is not doing good in the industry: 78.60% of the companies in the same industry are doing better.
A Quick Ratio of 0.84 indicates that TDC may have some problems paying its short term obligations.
TDC has a Quick ratio of 0.84. This is in the lower half of the industry: TDC underperforms 78.95% 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.
The Revenue has decreased by -6.74% in the past year.
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
TDC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.61% yearly.
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-6.77%
Revenue Next 2Y-3.65%
Revenue Next 3Y-2.15%
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
With a Price/Earnings ratio of 8.87, the valuation of TDC can be described as very reasonable.
91.23% of the companies in the same industry are more expensive than TDC, based on the Price/Earnings ratio.
TDC is valuated cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
TDC is valuated reasonably with a Price/Forward Earnings ratio of 8.93.
Based on the Price/Forward Earnings ratio, TDC is valued cheaply inside the industry as 91.93% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, TDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaper than 92.98% of the companies in the same industry.
97.19% of the companies in the same industry are more expensive than TDC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.49 | ||
| EV/EBITDA | 7.78 |
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)0.49
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
5. Dividend
5.1 Amount
No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.85
-0.04 (-0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.15%
Inst Owner Change-0.98%
Ins Owners1.92%
Ins Owner Change13.14%
Market Cap1.97B
Revenue(TTM)1.68B
Net Income(TTM)110.00M
Analysts68
Price Target24.93 (19.57%)
Short Float %9.78%
Short Ratio8.39
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.25%
EPS NY rev (1m)0%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 8.93 | ||
| P/S | 1.18 | ||
| P/FCF | 7.49 | ||
| P/OCF | 6.94 | ||
| P/B | 11.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.78 |
EPS(TTM)2.35
EY11.27%
EPS(NY)2.33
Fwd EY11.19%
FCF(TTM)2.78
FCFY13.35%
OCF(TTM)3.01
OCFY14.41%
SpS17.72
BVpS1.86
TBVpS-2.37
PEG (NY)N/A
PEG (5Y)0.49
Graham Number9.92
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%
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 Turnover0.96
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 | 0.43 |
F-Score7
WACC10.14%
ROIC/WACC1.37
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-6.77%
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 Year16.14%
EBIT Next 3Y7.17%
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%
TERADATA CORP / TDC FAQ
What is the fundamental rating for TDC stock?
ChartMill assigns a fundamental rating of 5 / 10 to TDC.
What is the valuation status of TERADATA CORP (TDC) stock?
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.
What is the valuation of TERADATA CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TERADATA CORP (TDC) is 8.87 and the Price/Book (PB) ratio is 11.2.
What is the earnings growth outlook for TERADATA CORP?
The Earnings per Share (EPS) of TERADATA CORP (TDC) is expected to decline by -8.57% in the next year.