TERADATA CORP (TDC) Stock Fundamental Analysis
USA - NYSE:TDC - US88076W1036 - Common Stock
22 USD
-0.21 (-0.95%)
21.95 USD
-0.05 (-0.23%)
We assign a fundamental rating of 5 out of 10 to TDC. TDC was compared to 280 industry peers in the Software industry. TDC has an excellent profitability rating, 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.
In the past year TDC had a positive cash flow from operations.
In the past 5 years TDC has always been profitable.
TDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TDC has a Return On Assets of 6.33%. This is in the better half of the industry: TDC outperforms 75.36% of its industry peers.
The Return On Equity of TDC (62.50%) is better than 97.14% of its industry peers.
TDC's Return On Invested Capital of 13.87% is amongst the best of the industry. TDC outperforms 91.43% 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 11.76%.
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 69.64% of the companies in the same industry.
In the last couple of years the Profit Margin of TDC has declined.
TDC's Operating Margin of 11.34% is fine compared to the rest of the industry. TDC outperforms 76.79% of its industry peers.
TDC's Operating Margin has improved in the last couple of years.
The Gross Margin of TDC (58.93%) is worse than 63.93% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TDC 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.
The debt/assets ratio for TDC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.48, we must say that TDC is in the distress zone and has some risk of bankruptcy.
TDC has a worse Altman-Z score (0.48) than 68.93% of its industry peers.
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.
The Debt to FCF ratio of TDC (2.18) is better than 66.79% of its industry peers.
A Debt/Equity ratio of 2.78 is on the high side and indicates that TDC has dependencies on debt financing.
TDC's Debt to Equity ratio of 2.78 is on the low side compared to the rest of the industry. TDC is outperformed by 82.14% of its industry peers.
Although TDC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.78 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 0.48 |
ROIC/WACC1.35
WACC10.24%
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: 78.93% 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.
Looking at the Quick ratio, with a value of 0.84, TDC is doing worse than 79.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
TDC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.31%.
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%.
TDC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.62% yearly.
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
Based on estimates for the next years, TDC will show a small growth in Earnings Per Share. The EPS will grow by 2.61% on average per year.
Based on estimates for the next years, TDC will show a small growth in Revenue. The Revenue will grow by 0.30% on average per year.
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
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
A Price/Earnings ratio of 9.36 indicates a reasonable valuation of TDC.
Based on the Price/Earnings ratio, TDC is valued cheaply inside the industry as 90.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.38. TDC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.43 indicates a reasonable valuation of TDC.
Based on the Price/Forward Earnings ratio, TDC is valued cheaper than 92.86% of the companies in the same industry.
TDC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 9.43 |
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 93.21% of the companies listed in the same industry.
TDC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TDC is cheaper than 97.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 8.23 |
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)0.51
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 |
22
-0.21 (-0.95%)
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 Change14.52%
Market Cap2.08B
Analysts68
Price Target24.93 (13.32%)
Short Float %7.74%
Short Ratio7.44
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)-4.89%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-8.01%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 9.43 | ||
| P/S | 1.24 | ||
| P/FCF | 7.9 | ||
| P/OCF | 7.32 | ||
| P/B | 11.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.23 |
EPS(TTM)2.35
EY10.68%
EPS(NY)2.33
Fwd EY10.61%
FCF(TTM)2.78
FCFY12.65%
OCF(TTM)3.01
OCFY13.66%
SpS17.72
BVpS1.86
TBVpS-2.37
PEG (NY)N/A
PEG (5Y)0.51
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 | 0.48 |
F-Score7
WACC10.24%
ROIC/WACC1.35
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 Year16.39%
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%