TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
31.09 USD
+0.59 (+1.93%)
31.18 USD
+0.09 (+0.29%)
Taking everything into account, TDC scores 4 out of 10 in our fundamental rating. TDC was compared to 276 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 correctly, but it does not seem to be growing.
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.
TDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TDC has a Return On Assets of 6.70%. This is in the better half of the industry: TDC outperforms 75.36% of its industry peers.
TDC has a Return On Equity of 53.88%. This is amongst the best in the industry. TDC outperforms 97.10% of its industry peers.
TDC has a better Return On Invested Capital (13.90%) than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TDC is in line with the industry average of 10.78%.
The 3 year average ROIC (12.22%) for TDC is below the current ROIC(13.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 53.88% | ||
| ROIC | 13.9% |
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
TDC has a better Profit Margin (7.15%) than 67.03% of its industry peers.
TDC's Profit Margin has declined in the last couple of years.
TDC has a better Operating Margin (11.75%) than 77.54% of its industry peers.
In the last couple of years the Operating Margin of TDC has grown nicely.
TDC has a Gross Margin of 58.99%. This is in the lower half of the industry: TDC underperforms 63.41% of its industry peers.
In the last couple of years the Gross Margin of TDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.75% | ||
| PM (TTM) | 7.15% | ||
| GM | 58.99% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TDC is still 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 0.81. This is a bad value and indicates that TDC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TDC (0.81) is worse than 64.86% of its industry peers.
The Debt to FCF ratio of TDC is 2.00, which is a good value as it means it would take TDC, 2.00 years of fcf income to pay off all of its debts.
TDC's Debt to FCF ratio of 2.00 is fine compared to the rest of the industry. TDC outperforms 68.48% of its industry peers.
A Debt/Equity ratio of 2.21 is on the high side and indicates that TDC has dependencies on debt financing.
TDC has a worse Debt to Equity ratio (2.21) than 82.25% 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 | 2.21 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 0.81 |
ROIC/WACC1.35
WACC10.29%
2.3 Liquidity
TDC has a Current Ratio of 0.90. 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 0.90. This is in the lower half of the industry: TDC underperforms 79.35% of its industry peers.
A Quick Ratio of 0.89 indicates that TDC may have some problems paying its short term obligations.
The Quick ratio of TDC (0.89) is worse than 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for TDC have decreased by -3.25% in the last year.
Measured over the past years, TDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.27% on average per year.
Looking at the last year, TDC shows a decrease in Revenue. The Revenue has decreased by -8.18% in the last year.
Measured over the past years, TDC shows a decrease in Revenue. The Revenue has been decreasing by -1.62% on average per year.
EPS 1Y (TTM)-3.25%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-5.45%
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 6.63% on average per year.
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-0.06%
EPS Next 2Y2.48%
EPS Next 3Y4.06%
EPS Next 5Y6.63%
Revenue Next Year-6.38%
Revenue Next 2Y-3.42%
Revenue Next 3Y-2.13%
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 13.06, TDC is valued correctly.
Based on the Price/Earnings ratio, TDC is valued cheaper than 85.14% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. TDC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.18, which indicates a correct valuation of TDC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 85.87% of the companies listed in the same industry.
TDC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 12.18 |
4.2 Price Multiples
TDC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TDC is cheaper than 87.68% of the companies in the same industry.
92.75% 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 | 10.28 | ||
| EV/EBITDA | 10.61 |
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)0.71
EPS Next 2Y2.48%
EPS Next 3Y4.06%
5. Dividend
5.1 Amount
No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
31.09
+0.59 (+1.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.63%
Inst Owner Change0%
Ins Owners1.89%
Ins Owner Change-0.85%
Market Cap2.90B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts70.67
Price Target28.87 (-7.14%)
Short Float %5.95%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)24.49%
Min EPS beat(2)15.96%
Max EPS beat(2)33.02%
EPS beat(4)4
Avg EPS beat(4)21.38%
Min EPS beat(4)15.81%
Max EPS beat(4)33.02%
EPS beat(8)8
Avg EPS beat(8)18.68%
EPS beat(12)10
Avg EPS beat(12)13.79%
EPS beat(16)14
Avg EPS beat(16)18.29%
Revenue beat(2)2
Avg Revenue beat(2)1.2%
Min Revenue beat(2)1%
Max Revenue beat(2)1.39%
Revenue beat(4)2
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)1.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.35%
Revenue beat(12)6
Avg Revenue beat(12)0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.36%
PT rev (1m)1.8%
PT rev (3m)15.77%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)3.6%
EPS NY rev (1m)0.68%
EPS NY rev (3m)9.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 12.18 | ||
| P/S | 1.76 | ||
| P/FCF | 10.28 | ||
| P/OCF | 9.63 | ||
| P/B | 13.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.61 |
EPS(TTM)2.38
EY7.66%
EPS(NY)2.55
Fwd EY8.21%
FCF(TTM)3.03
FCFY9.73%
OCF(TTM)3.23
OCFY10.39%
SpS17.71
BVpS2.35
TBVpS-1.93
PEG (NY)N/A
PEG (5Y)0.71
Graham Number11.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 53.88% | ||
| ROCE | 22.69% | ||
| ROIC | 13.9% | ||
| ROICexc | 26.47% | ||
| ROICexgc | 237.66% | ||
| OM | 11.75% | ||
| PM (TTM) | 7.15% | ||
| GM | 58.99% | ||
| FCFM | 17.08% |
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 Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 2 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 21.35% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.36% | ||
| Profit Quality | 238.98% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.81 |
F-Score7
WACC10.29%
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)-3.25%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%4.35%
EPS Next Y-0.06%
EPS Next 2Y2.48%
EPS Next 3Y4.06%
EPS Next 5Y6.63%
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-5.45%
Revenue Next Year-6.38%
Revenue Next 2Y-3.42%
Revenue Next 3Y-2.13%
Revenue Next 5Y0.3%
EBIT growth 1Y-10.6%
EBIT growth 3Y-3.28%
EBIT growth 5Y83.67%
EBIT Next Year21.48%
EBIT Next 3Y8.54%
EBIT Next 5YN/A
FCF growth 1Y-8.14%
FCF growth 3Y-13.77%
FCF growth 5Y25.49%
OCF growth 1Y-8.23%
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 4 / 10 to TDC.
Can you provide the valuation status for TERADATA CORP?
ChartMill assigns a valuation rating of 6 / 10 to TERADATA CORP (TDC). This can be considered as Fairly Valued.
How profitable is TERADATA CORP (TDC) stock?
TERADATA CORP (TDC) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for TDC stock?
The Earnings per Share (EPS) of TERADATA CORP (TDC) is expected to decline by -0.06% in the next year.