TERADATA CORP (TDC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDC - US88076W1036 - Common Stock
28.64 USD
+0.38 (+1.34%)
28.64 USD
0 (0%)
Overall TDC gets a fundamental rating of 5 out of 10. We evaluated TDC against 280 industry peers in the Software industry. TDC scores excellent on profitability, 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.
In the past year TDC had a positive cash flow from operations.
TDC had positive earnings in each of the past 5 years.
Each year in the past 5 years TDC had a positive operating cash flow.
1.2 Ratios
TDC's Return On Assets of 6.70% is fine compared to the rest of the industry. TDC outperforms 75.71% of its industry peers.
TDC's Return On Equity of 53.88% is amongst the best of the industry. TDC outperforms 97.14% of its industry peers.
TDC's Return On Invested Capital of 13.90% is amongst the best of the industry. TDC outperforms 91.43% of its industry peers.
TDC had an Average Return On Invested Capital over the past 3 years of 12.22%. This is in line with the industry average of 12.00%.
The last Return On Invested Capital (13.90%) for TDC is above the 3 year average (12.22%), which is a sign of increasing profitability.
| 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 68.57% 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 11.75%, TDC is in the better half of the industry, outperforming 76.79% 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 58.99%, TDC is not doing good in the industry: 63.93% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TDC is creating some value.
TDC has less shares outstanding than it did 1 year ago.
TDC has less shares outstanding than it did 5 years ago.
TDC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that TDC is in the distress zone and has some risk of bankruptcy.
TDC has a worse Altman-Z score (0.75) than 65.36% 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.
The Debt to FCF ratio of TDC (2.00) is better than 68.93% 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.
With a Debt to Equity ratio value of 2.21, TDC is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
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 | 0.75 |
ROIC/WACC1.35
WACC10.32%
2.3 Liquidity
A Current Ratio of 0.90 indicates that TDC may have some problems paying its short term obligations.
With a Current ratio value of 0.90, TDC is not doing good in the industry: 79.29% of the companies in the same industry are doing better.
A Quick Ratio of 0.89 indicates that TDC may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, TDC is not doing good in the industry: 79.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
TDC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.25%.
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%.
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
TDC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.61% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 12.03, TDC is valued correctly.
Based on the Price/Earnings ratio, TDC is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. TDC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.27, TDC is valued correctly.
Based on the Price/Forward Earnings ratio, TDC is valued cheaper than 85.00% of the companies in the same industry.
TDC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TDC is valued cheaply inside the industry as 88.21% of the companies are valued more expensively.
93.21% 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 | 9.6 | ||
| EV/EBITDA | 10 |
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)0.66
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 |
28.64
+0.38 (+1.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.15%
Inst Owner Change2.78%
Ins Owners1.92%
Ins Owner Change1.9%
Market Cap2.67B
Revenue(TTM)1.65B
Net Income(TTM)118.00M
Analysts68
Price Target28.36 (-0.98%)
Short Float %9.68%
Short Ratio6.15
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)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)2.98%
EPS NQ rev (3m)2.98%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 12.27 | ||
| P/S | 1.64 | ||
| P/FCF | 9.6 | ||
| P/OCF | 8.99 | ||
| P/B | 12.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10 |
EPS(TTM)2.38
EY8.31%
EPS(NY)2.33
Fwd EY8.15%
FCF(TTM)2.98
FCFY10.42%
OCF(TTM)3.19
OCFY11.12%
SpS17.47
BVpS2.32
TBVpS-1.9
PEG (NY)N/A
PEG (5Y)0.66
Graham Number11.14
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 | 0.75 |
F-Score7
WACC10.32%
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-8.57%
EPS Next 2Y-1.99%
EPS Next 3Y2.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y-2.99%
Revenue growth 5Y-1.62%
Sales Q2Q%-5.45%
Revenue Next Year-6.77%
Revenue Next 2Y-3.65%
Revenue Next 3Y-2.15%
Revenue Next 5Y0.3%
EBIT growth 1Y-10.6%
EBIT growth 3Y-3.28%
EBIT growth 5Y83.67%
EBIT Next Year16.14%
EBIT Next 3Y7.17%
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 5 / 10 to TDC.
What is the valuation status of TERADATA CORP (TDC) stock?
ChartMill assigns a valuation rating of 7 / 10 to TERADATA CORP (TDC). This can be considered as Undervalued.
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 12.03 and the Price/Book (PB) ratio is 12.36.
What is the earnings growth outlook for TERADATA CORP?
The Earnings per Share (EPS) of TERADATA CORP (TDC) is expected to decline by -8.57% in the next year.