TERADATA CORP (TDC) Stock Fundamental Analysis
NYSE:TDC • US88076W1036
30.41 USD
+0.38 (+1.27%)
At close: Feb 25, 2026
30.41 USD
0 (0%)
After Hours: 2/25/2026, 8:04:00 PM
Overall TDC gets a fundamental rating of 5 out of 10. We evaluated TDC against 274 industry peers in the Software industry. While TDC has a great profitability rating, there are some minor concerns on its financial health. TDC is cheap, 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.
- 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 has a better Return On Assets (7.31%) than 77.01% of its industry peers.
- TDC's Return On Equity of 56.52% is amongst the best of the industry. TDC outperforms 96.72% of its industry peers.
- TDC's Return On Invested Capital of 17.22% is amongst the best of the industry. TDC outperforms 93.43% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TDC is significantly above the industry average of 10.77%.
- The last Return On Invested Capital (17.22%) for TDC is above the 3 year average (17.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 56.52% | ||
| ROIC | 17.22% |
ROA(3y)5.77%
ROA(5y)5.14%
ROE(3y)62.72%
ROE(5y)46.58%
ROIC(3y)17.08%
ROIC(5y)14.81%
1.3 Margins
- TDC has a Profit Margin of 7.82%. This is in the better half of the industry: TDC outperforms 67.15% of its industry peers.
- In the last couple of years the Profit Margin of TDC has grown nicely.
- The Operating Margin of TDC (12.57%) is better than 77.01% of its industry peers.
- In the last couple of years the Operating Margin of TDC has grown nicely.
- TDC's Gross Margin of 59.35% is on the low side compared to the rest of the industry. TDC is outperformed by 63.87% of its industry peers.
- In the last couple of years the Gross Margin of TDC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.57% | ||
| PM (TTM) | 7.82% | ||
| GM | 59.35% |
OM growth 3Y23.31%
OM growth 5Y69.87%
PM growth 3Y62.01%
PM growth 5Y2.16%
GM growth 3Y-0.49%
GM growth 5Y1.35%
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.
- The number of shares outstanding for TDC has been reduced compared to 1 year ago.
- Compared to 5 years ago, TDC has less shares outstanding
- Compared to 1 year ago, TDC has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.86, we must say that TDC is in the distress zone and has some risk of bankruptcy.
- TDC has a worse Altman-Z score (0.86) than 62.77% of its industry peers.
- TDC has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
- The Debt to FCF ratio of TDC (1.93) is better than 67.52% of its industry peers.
- TDC has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.07, TDC is not doing good in the industry: 82.48% of the companies in the same industry are doing better.
- 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 | 2.07 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 0.86 |
ROIC/WACC1.63
WACC10.55%
2.3 Liquidity
- TDC has a Current Ratio of 0.92. 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's Current ratio of 0.92 is on the low side compared to the rest of the industry. TDC is outperformed by 78.47% of its industry peers.
- TDC has a Quick Ratio of 0.92. 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 Quick ratio of TDC (0.90) is worse than 79.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- TDC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.58%.
- Measured over the past years, TDC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.43% on average per year.
- Looking at the last year, TDC shows a decrease in Revenue. The Revenue has decreased by -4.97% in the last year.
- Measured over the past years, TDC shows a decrease in Revenue. The Revenue has been decreasing by -1.96% on average per year.
EPS 1Y (TTM)6.58%
EPS 3Y16.45%
EPS 5Y14.43%
EPS Q2Q%39.62%
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y-2.51%
Revenue growth 5Y-1.96%
Sales Q2Q%2.93%
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 6.64% on average per year.
- Based on estimates for the next years, TDC will show a small growth in Revenue. The Revenue will grow by 1.97% on average per year.
EPS Next Y-1.47%
EPS Next 2Y2.86%
EPS Next 3Y6.64%
EPS Next 5YN/A
Revenue Next Year0.36%
Revenue Next 2Y0.96%
Revenue Next 3Y1.33%
Revenue Next 5Y1.97%
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
- TDC is valuated reasonably with a Price/Earnings ratio of 11.74.
- 84.31% of the companies in the same industry are more expensive than TDC, based on the Price/Earnings ratio.
- TDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.05.
- A Price/Forward Earnings ratio of 11.92 indicates a reasonable 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 81.02% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.03, TDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.92 |
4.2 Price Multiples
- 88.32% of the companies in the same industry are more expensive than TDC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDC indicates a rather cheap valuation: TDC is cheaper than 90.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.94 | ||
| EV/EBITDA | 9.67 |
4.3 Compensation for Growth
- TDC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y2.86%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
- No dividends for TDC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
30.41
+0.38 (+1.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-10 2026-02-10/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners105.63%
Inst Owner Change-3.67%
Ins Owners1.89%
Ins Owner Change4.66%
Market Cap2.83B
Revenue(TTM)1.66B
Net Income(TTM)130.00M
Analysts70.67
Price Target30.09 (-1.05%)
Short Float %7.69%
Short Ratio4.23
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)32.42%
Min EPS beat(2)31.82%
Max EPS beat(2)33.02%
EPS beat(4)4
Avg EPS beat(4)24.15%
Min EPS beat(4)15.81%
Max EPS beat(4)33.02%
EPS beat(8)8
Avg EPS beat(8)21.65%
EPS beat(12)10
Avg EPS beat(12)15.24%
EPS beat(16)14
Avg EPS beat(16)13.66%
Revenue beat(2)2
Avg Revenue beat(2)2.69%
Min Revenue beat(2)1.39%
Max Revenue beat(2)3.99%
Revenue beat(4)3
Avg Revenue beat(4)1%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)3.99%
Revenue beat(8)4
Avg Revenue beat(8)0.26%
Revenue beat(12)6
Avg Revenue beat(12)0.25%
Revenue beat(16)8
Avg Revenue beat(16)0%
PT rev (1m)0%
PT rev (3m)6.12%
EPS NQ rev (1m)8.07%
EPS NQ rev (3m)8.87%
EPS NY rev (1m)0%
EPS NY rev (3m)9.33%
Revenue NQ rev (1m)3.49%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 11.92 | ||
| P/S | 1.7 | ||
| P/FCF | 9.94 | ||
| P/OCF | 9.29 | ||
| P/B | 12.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.67 |
EPS(TTM)2.59
EY8.52%
EPS(NY)2.55
Fwd EY8.39%
FCF(TTM)3.06
FCFY10.06%
OCF(TTM)3.27
OCFY10.76%
SpS17.84
BVpS2.47
TBVpS-1.81
PEG (NY)N/A
PEG (5Y)0.81
Graham Number11.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 56.52% | ||
| ROCE | 24.16% | ||
| ROIC | 17.22% | ||
| ROICexc | 40.04% | ||
| ROICexgc | N/A | ||
| OM | 12.57% | ||
| PM (TTM) | 7.82% | ||
| GM | 59.35% | ||
| FCFM | 17.14% |
ROA(3y)5.77%
ROA(5y)5.14%
ROE(3y)62.72%
ROE(5y)46.58%
ROIC(3y)17.08%
ROIC(5y)14.81%
ROICexc(3y)38.42%
ROICexc(5y)32.88%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)23.97%
ROCE(5y)20.77%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y27.71%
ROICexc growth 5Y89.63%
OM growth 3Y23.31%
OM growth 5Y69.87%
PM growth 3Y62.01%
PM growth 5Y2.16%
GM growth 3Y-0.49%
GM growth 5Y1.35%
F-Score7
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 22.22% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.01% | ||
| Profit Quality | 219.23% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.86 |
F-Score7
WACC10.55%
ROIC/WACC1.63
Cap/Depr(3y)21.82%
Cap/Depr(5y)19.64%
Cap/Sales(3y)1.26%
Cap/Sales(5y)1.26%
Profit Quality(3y)344.93%
Profit Quality(5y)509.98%
High Growth Momentum
Growth
EPS 1Y (TTM)6.58%
EPS 3Y16.45%
EPS 5Y14.43%
EPS Q2Q%39.62%
EPS Next Y-1.47%
EPS Next 2Y2.86%
EPS Next 3Y6.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y-2.51%
Revenue growth 5Y-1.96%
Sales Q2Q%2.93%
Revenue Next Year0.36%
Revenue Next 2Y0.96%
Revenue Next 3Y1.33%
Revenue Next 5Y1.97%
EBIT growth 1Y0%
EBIT growth 3Y20.21%
EBIT growth 5Y66.54%
EBIT Next Year32.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y2.89%
FCF growth 3Y-10.91%
FCF growth 5Y5.7%
OCF growth 1Y0.66%
OCF growth 3Y-10.04%
OCF growth 5Y2.7%
TERADATA CORP / TDC FAQ
What is the fundamental rating for TDC stock?
ChartMill assigns a fundamental rating of 5 / 10 to TDC.
Can you provide the valuation status for TERADATA CORP?
ChartMill assigns a valuation rating of 8 / 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 8 / 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 -1.47% in the next year.