TERADATA CORP (TDC) Stock Fundamental Analysis
USA - NYSE:TDC - US88076W1036 - Common Stock
20.42 USD
-1.3 (-5.99%)
20.42 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TDC. TDC was compared to 281 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
In the past year TDC was profitable.
TDC had a positive operating cash flow in the past year.
TDC had positive earnings in each of the past 5 years.
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 75.09% of its industry peers.
With an excellent Return On Equity value of 62.50%, TDC belongs to the best of the industry, outperforming 97.15% of the companies in the same industry.
TDC has a better Return On Invested Capital (13.87%) than 91.10% 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 11.98%.
The 3 year average ROIC (12.22%) for TDC is below the current ROIC(13.87%), indicating increased profibility in the last year.
| 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
The Profit Margin of TDC (6.57%) is better than 69.39% of its industry peers.
In the last couple of years the Profit Margin of TDC has declined.
Looking at the Operating Margin, with a value of 11.34%, TDC is in the better half of the industry, outperforming 76.51% 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: 63.35% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TDC is still 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 an improved debt to assets ratio.
2.2 Solvency
TDC has an Altman-Z score of 0.46. 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 (0.46) is worse than 69.39% of its industry peers.
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.
With a decent Debt to FCF ratio value of 2.18, TDC is doing good in the industry, outperforming 66.90% of the companies in the same industry.
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 81.49% 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 | 0.46 |
ROIC/WACC1.34
WACC10.35%
2.3 Liquidity
TDC has a Current Ratio of 0.84. This is a bad value and indicates that TDC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TDC (0.84) is worse than 77.94% of its industry peers.
TDC has a Quick Ratio of 0.84. 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 worse Quick ratio (0.84) than 78.29% 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.
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.
TDC shows a decrease in Revenue. In the last year, the revenue decreased by -6.74%.
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)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
The Earnings Per Share is expected to grow by 2.61% on average over the next years.
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
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 8.69, the valuation of TDC can be described as very reasonable.
Based on the Price/Earnings ratio, TDC is valued cheaper than 91.46% of the companies in the same industry.
TDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
TDC is valuated reasonably with a Price/Forward Earnings ratio of 8.75.
93.24% of the companies in the same industry are more expensive than TDC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.57. TDC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaper than 93.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TDC is valued cheaper than 97.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
The decent profitability rating of TDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
5. Dividend
5.1 Amount
TDC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.42
-1.3 (-5.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.15%
Inst Owner Change0%
Ins Owners1.92%
Ins Owner Change13.05%
Market Cap1.93B
Analysts68
Price Target24.93 (22.09%)
Short Float %8.55%
Short Ratio7.71
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)0.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 8.75 | ||
| P/S | 1.15 | ||
| P/FCF | 7.34 | ||
| P/OCF | 6.79 | ||
| P/B | 10.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.06 |
EPS(TTM)2.35
EY11.51%
EPS(NY)2.33
Fwd EY11.43%
FCF(TTM)2.78
FCFY13.63%
OCF(TTM)3.01
OCFY14.72%
SpS17.72
BVpS1.86
TBVpS-2.37
PEG (NY)N/A
PEG (5Y)0.48
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 | 0.46 |
F-Score7
WACC10.35%
ROIC/WACC1.34
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%