TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
30.71 USD
+0.85 (+2.85%)
30.8612 USD
+0.15 (+0.49%)
We assign a fundamental rating of 4 out of 10 to TDC. TDC was compared to 281 industry peers in the Software industry. While TDC has a great profitability rating, there are quite some concerns on its financial health. TDC has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years TDC has been profitable.
In the past 5 years TDC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.70%, TDC is in the better half of the industry, outperforming 76.16% of the companies in the same industry.
Looking at the Return On Equity, with a value of 53.88%, TDC belongs to the top of the industry, outperforming 97.15% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.90%, TDC belongs to the top of the industry, outperforming 91.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TDC is in line with the industry average of 10.73%.
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
The Profit Margin of TDC (7.15%) is better than 68.33% of its industry peers.
In the last couple of years the Profit Margin of TDC has declined.
TDC has a better Operating Margin (11.75%) than 77.58% of its industry peers.
TDC's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 58.99%, TDC is not doing good in the industry: 62.63% 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 | 11.75% | ||
| 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.
The number of shares outstanding for TDC has been reduced compared to 1 year ago.
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
Based on the Altman-Z score of 0.82, we must say that TDC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TDC (0.82) is worse than 64.41% 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 has a better Debt to FCF ratio (2.00) than 68.68% of its industry peers.
TDC has a Debt/Equity ratio of 2.21. This is a high value indicating a heavy dependency on external financing.
TDC has a Debt to Equity ratio of 2.21. This is amonst the worse of the industry: TDC underperforms 81.49% 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 | 2.21 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 0.82 |
ROIC/WACC1.36
WACC10.24%
2.3 Liquidity
A Current Ratio of 0.90 indicates that TDC may have some problems paying its short term obligations.
TDC's Current ratio of 0.90 is on the low side compared to the rest of the industry. TDC is outperformed by 79.00% of its industry peers.
A Quick Ratio of 0.89 indicates that TDC may have some problems paying its short term obligations.
TDC's Quick ratio of 0.89 is on the low side compared to the rest of the industry. TDC is outperformed by 80.07% 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.
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 -8.18%.
The Revenue has been decreasing by -1.62% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.63% on average over the next years.
The Revenue is expected to grow by 0.30% on average over the next years.
EPS Next Y-0.74%
EPS Next 2Y2.42%
EPS Next 3Y4.04%
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.
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
Based on the Price/Earnings ratio of 12.90, the valuation of TDC can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 84.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.38, TDC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.05, the valuation of TDC can be described as correct.
Based on the Price/Forward Earnings ratio, TDC is valued cheaply inside the industry as 85.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, TDC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaper than 87.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TDC is valued cheaper than 92.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| EV/EBITDA | 10.68 |
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 2Y2.42%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.71
+0.85 (+2.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.35%
Inst Owner Change2.79%
Ins Owners1.89%
Ins Owner Change-0.85%
Market Cap2.86B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts70.67
Price Target28.36 (-7.65%)
Short Float %6.9%
Short Ratio3.79
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)13.73%
PT rev (3m)13.73%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)3.36%
EPS NY rev (1m)8.56%
EPS NY rev (3m)8.56%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.05 | ||
| P/S | 1.73 | ||
| P/FCF | 10.15 | ||
| P/OCF | 9.51 | ||
| P/B | 13.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.68 |
EPS(TTM)2.38
EY7.75%
EPS(NY)2.55
Fwd EY8.3%
FCF(TTM)3.03
FCFY9.85%
OCF(TTM)3.23
OCFY10.52%
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 | 0.82 |
F-Score7
WACC10.24%
ROIC/WACC1.36
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-0.74%
EPS Next 2Y2.42%
EPS Next 3Y4.04%
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.
What is the valuation status of TERADATA CORP (TDC) stock?
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.
What is the valuation of TERADATA CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TERADATA CORP (TDC) is 12.9 and the Price/Book (PB) ratio is 13.07.
What is the earnings growth outlook for TERADATA CORP?
The Earnings per Share (EPS) of TERADATA CORP (TDC) is expected to decline by -0.74% in the next year.