TERADATA CORP (TDC) Stock Fundamental Analysis
NYSE:TDC - New York Stock Exchange, Inc. - US88076W1036 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TDC. TDC was compared to 282 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, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year TDC was profitable.
TDC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 7.88%, TDC belongs to the top of the industry, outperforming 81.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of 87.34%, TDC belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
TDC has a Return On Invested Capital of 17.40%. This is amongst the best in the industry. TDC outperforms 92.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TDC is in line with the industry average of 12.28%.
The 3 year average ROIC (12.22%) for TDC is below the current ROIC(17.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 87.34% | ||
| ROIC | 17.4% |
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 8.10%, TDC is in the better half of the industry, outperforming 75.53% of the companies in the same industry.
In the last couple of years the Profit Margin of TDC has declined.
Looking at the Operating Margin, with a value of 13.45%, TDC belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
TDC's Operating Margin has improved in the last couple of years.
TDC's Gross Margin of 60.01% is on the low side compared to the rest of the industry. TDC is outperformed by 60.64% of its industry peers.
In the last couple of years the Gross Margin of TDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.45% | ||
| PM (TTM) | 8.1% | ||
| GM | 60.01% |
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
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 0.57, we must say that TDC is in the distress zone and has some risk of bankruptcy.
TDC has a Altman-Z score of 0.57. This is in the lower half of the industry: TDC underperforms 67.38% of its industry peers.
TDC has a debt to FCF ratio of 2.20. This is a good value and a sign of high solvency as TDC would need 2.20 years to pay back of all of its debts.
The Debt to FCF ratio of TDC (2.20) is better than 67.38% of its industry peers.
A Debt/Equity ratio of 3.11 is on the high side and indicates that TDC has dependencies on debt financing.
TDC has a Debt to Equity ratio of 3.11. This is amonst the worse of the industry: TDC underperforms 82.27% 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 | 3.11 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 0.57 |
ROIC/WACC1.73
WACC10.05%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TDC may have some problems paying its short term obligations.
TDC has a Current ratio of 0.84. This is in the lower half of the industry: TDC underperforms 79.79% of its industry peers.
A Quick Ratio of 0.82 indicates that TDC may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, TDC is not doing good in the industry: 79.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.14% over the past 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.
The Revenue has decreased by -6.53% in the past year.
TDC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.62% yearly.
EPS 1Y (TTM)24.14%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%15.79%
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-10.11%
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 2.38% on average per year.
The Revenue is expected to grow by 0.30% on average over the next years.
EPS Next Y-9.42%
EPS Next 2Y-1.49%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue Next Year-7.11%
Revenue Next 2Y-3.45%
Revenue Next 3Y-2.23%
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
With a Price/Earnings ratio of 8.50, the valuation of TDC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 94.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TDC to the average of the S&P500 Index (27.30), we can say TDC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.09, the valuation of TDC can be described as reasonable.
TDC's Price/Forward Earnings ratio is rather cheap when compared to the industry. TDC is cheaper than 93.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TDC to the average of the S&P500 Index (21.76), we can say TDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaply inside the industry as 96.45% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TDC is valued cheaper than 96.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 7.27 |
4.3 Compensation for Growth
The excellent profitability rating of TDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-1.49%
EPS Next 3Y2.38%
5. Dividend
5.1 Amount
No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.43
-0.84 (-3.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.82%
Inst Owner Change-0.02%
Ins Owners1.73%
Ins Owner Change21.96%
Market Cap2.05B
Analysts68
Price Target24.93 (16.33%)
Short Float %6.48%
Short Ratio5.63
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)18.27%
Min EPS beat(2)15.81%
Max EPS beat(2)20.73%
EPS beat(4)4
Avg EPS beat(4)22.59%
Min EPS beat(4)15.81%
Max EPS beat(4)32.21%
EPS beat(8)7
Avg EPS beat(8)12.98%
EPS beat(12)10
Avg EPS beat(12)11.32%
EPS beat(16)14
Avg EPS beat(16)20.75%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-2.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)4.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.44%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)6
Avg Revenue beat(16)-0.39%
PT rev (1m)-14.53%
PT rev (3m)-19.06%
EPS NQ rev (1m)-2.4%
EPS NQ rev (3m)-29.74%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-1.58%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 9.09 | ||
| P/S | 1.2 | ||
| P/FCF | 7.79 | ||
| P/OCF | 7.21 | ||
| P/B | 12.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.27 |
EPS(TTM)2.52
EY11.76%
EPS(NY)2.36
Fwd EY11%
FCF(TTM)2.75
FCFY12.84%
OCF(TTM)2.97
OCFY13.86%
SpS17.81
BVpS1.65
TBVpS-2.49
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 87.34% | ||
| ROCE | 28.41% | ||
| ROIC | 17.4% | ||
| ROICexc | 32.02% | ||
| ROICexgc | 333.97% | ||
| OM | 13.45% | ||
| PM (TTM) | 8.1% | ||
| GM | 60.01% | ||
| FCFM | 15.44% |
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 Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.11 | ||
| Debt/FCF | 2.2 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 22.58% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.2% | ||
| Profit Quality | 190.58% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 0.57 |
F-Score7
WACC10.05%
ROIC/WACC1.73
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)24.14%
EPS 3Y0%
EPS 5Y18.27%
EPS Q2Q%15.79%
EPS Next Y-9.42%
EPS Next 2Y-1.49%
EPS Next 3Y2.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.53%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-10.11%
Revenue Next Year-7.11%
Revenue Next 2Y-3.45%
Revenue Next 3Y-2.23%
Revenue Next 5Y0.3%
EBIT growth 1Y47.74%
EBIT growth 3Y-3.28%
EBIT growth 5Y83.67%
EBIT Next Year17.09%
EBIT Next 3Y8.04%
EBIT Next 5YN/A
FCF growth 1Y-26.54%
FCF growth 3Y-13.77%
FCF growth 5Y25.49%
OCF growth 1Y-24.67%
OCF growth 3Y-13.18%
OCF growth 5Y15.41%