TERADATA CORP (TDC)
US88076W1036 - Common Stock
We assign a fundamental rating of 5 out of 10 to TDC. TDC was compared to 277 industry peers in the Software industry. TDC scores excellent on profitability, but there are concerns on its financial health. TDC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TDC was profitable.
TDC had a positive operating cash flow in the past year.
TDC had positive earnings in 4 of the past 5 years.
In the past 5 years TDC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.31%, TDC is doing good in the industry, outperforming 76.28% of the companies in the same industry.
Looking at the Return On Equity, with a value of 45.93%, TDC belongs to the top of the industry, outperforming 97.08% of the companies in the same industry.
TDC's Return On Invested Capital of 16.75% is amongst the best of the industry. TDC outperforms 94.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TDC is above the industry average of 10.44%.
The last Return On Invested Capital (16.75%) for TDC is above the 3 year average (14.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 45.93% | ||
| ROIC | 16.75% |
ROA(3y)3.91%
ROA(5y)3.33%
ROE(3y)30.22%
ROE(5y)23.06%
ROIC(3y)14%
ROIC(5y)8.74%
1.3 Margins
Looking at the Profit Margin, with a value of 3.38%, TDC is in the better half of the industry, outperforming 74.09% of the companies in the same industry.
In the last couple of years the Profit Margin of TDC has grown nicely.
Looking at the Operating Margin, with a value of 10.15%, TDC belongs to the top of the industry, outperforming 82.48% of the companies in the same industry.
In the last couple of years the Operating Margin of TDC has grown nicely.
With a Gross Margin value of 60.83%, TDC perfoms like the industry average, outperforming 42.34% of the companies in the same industry.
TDC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | 3.38% | ||
| GM | 60.83% |
OM growth 3Y126.66%
OM growth 5Y38.56%
PM growth 3Y-21.63%
PM growth 5Y19.53%
GM growth 3Y3.1%
GM growth 5Y5.11%
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.
The number of shares outstanding for TDC has been reduced compared to 5 years ago.
Compared to 1 year ago, TDC has a worse debt to assets ratio.
2.2 Solvency
TDC has an Altman-Z score of 1.13. This is a bad value and indicates that TDC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.13, TDC is doing worse than 60.22% of the companies in the same industry.
The Debt to FCF ratio of TDC is 1.77, which is an excellent value as it means it would take TDC, only 1.77 years of fcf income to pay off all of its debts.
TDC has a better Debt to FCF ratio (1.77) than 70.80% of its industry peers.
TDC has a Debt/Equity ratio of 4.02. This is a high value indicating a heavy dependency on external financing.
TDC has a worse Debt to Equity ratio (4.02) than 84.67% 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 | 4.02 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.13 |
ROIC/WACC1.74
WACC9.61%
2.3 Liquidity
TDC has a Current Ratio of 0.87. 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 Current ratio of 0.87. This is amonst the worse of the industry: TDC underperforms 82.12% of its industry peers.
TDC has a Quick Ratio of 0.87. 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's Quick ratio of 0.86 is on the low side compared to the rest of the industry. TDC is outperformed by 81.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.22% over the past year.
TDC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.75% yearly.
TDC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.12%.
The Revenue has been decreasing by -3.27% on average over the past years.
EPS 1Y (TTM)26.22%
EPS 3Y16.18%
EPS 5Y9.75%
EPS growth Q2Q60%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y-0.05%
Revenue growth 5Y-3.27%
Revenue growth Q2Q1.11%
3.2 Future
The Earnings Per Share is expected to grow by 16.55% on average over the next years. This is quite good.
Based on estimates for the next years, TDC will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y7.64%
EPS Next 2Y14.81%
EPS Next 3Y16.55%
EPS Next 5YN/A
Revenue Next Year0.16%
Revenue Next 2Y2.56%
Revenue Next 3Y3.58%
Revenue Next 5YN/A
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 accelerating.
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
A Price/Earnings ratio of 17.99 indicates a rather expensive valuation of TDC.
TDC's Price/Earnings ratio is rather cheap when compared to the industry. TDC is cheaper than 87.23% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, TDC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.71, the valuation of TDC can be described as correct.
Based on the Price/Forward Earnings ratio, TDC is valued cheaply inside the industry as 87.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, TDC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
91.24% of the companies in the same industry are more expensive than TDC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TDC is valued cheaper than 94.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 12.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TDC does not grow enough to justify the current Price/Earnings ratio.
TDC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TDC's earnings are expected to grow with 16.55% in the coming years.
PEG (NY)2.36
PEG (5Y)1.85
EPS Next 2Y14.81%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
TDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TERADATA CORP
NYSE:TDC (5/3/2024, 7:21:10 PM)
After market: 37.24 0 (0%)37.24
-0.02 (-0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.99 | ||
| Fwd PE | 16.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.36
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 45.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.15% | ||
| PM (TTM) | 3.38% | ||
| GM | 60.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)26.22%
EPS 3Y16.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.12%
Revenue growth 3Y-0.05%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y