DB:3T4

Stock Analysis Report

Executive Summary

Teradata Corporation provides hybrid cloud analytics software.

Snowflake

Fundamentals

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Teradata's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

3T4

9.0%

DE Software

2.4%

DE Market


1 Year Return

-10.8%

3T4

15.9%

DE Software

2.3%

DE Market

Return vs Industry: 3T4 underperformed the German Software industry which returned 15.9% over the past year.

Return vs Market: 3T4 underperformed the German Market which returned 2.3% over the past year.


Shareholder returns

3T4IndustryMarket
7 Day-0.7%9.0%2.4%
30 Day-10.7%5.9%-0.2%
90 Day-16.8%-5.4%0.6%
1 Year-10.8%-10.8%17.5%15.9%5.5%2.3%
3 Year0.7%0.7%54.2%47.9%18.9%8.6%
5 Year-19.1%-19.1%148.4%130.8%44.8%25.1%

Price Volatility Vs. Market

How volatile is Teradata's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Teradata undervalued compared to its fair value and its price relative to the market?

48.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 3T4 (€26.8) is trading below our estimate of fair value (€52.29)

Significantly Undervalued: 3T4 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3T4 is poor value based on its PE Ratio (157.8x) compared to the Software industry average (37.8x).

PE vs Market: 3T4 is poor value based on its PE Ratio (157.8x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: 3T4 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 3T4 is overvalued based on its PB Ratio (9.2x) compared to the DE Software industry average (3x).


Next Steps

Future Growth

How is Teradata forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

57.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3T4's forecast earnings growth (57.4% per year) is above the savings rate (0.2%).

Earnings vs Market: 3T4's earnings (57.4% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3T4's revenue (4.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 3T4's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 3T4's Return on Equity is forecast to be very high in 3 years time (58.1%).


Next Steps

Past Performance

How has Teradata performed over the past 5 years?

-39.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3T4's earnings have declined by -39.2% per year over the past 5 years.

Accelerating Growth: 3T4 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 3T4 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (14.5%).


Return on Equity

High ROE: 3T4's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: 3T4's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: 3T4's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Teradata's financial position?


Financial Position Analysis

Short Term Liabilities: 3T4's short term assets ($1.1B) exceeds its short term liabilities ($865.0M)

Long Term Liabilities: 3T4's short term assets (1.1B) exceeds its long term liabilities (891.0M)


Debt to Equity History and Analysis

Debt Level: 3T4's debt to equity ratio (139.2%) is considered high

Reducing Debt: 3T4's debt to equity ratio has increased from 12.1% to 139.2% over the past 5 years.

Debt Coverage: 3T4's debt is well covered by operating cash flow (34.8%).

Interest Coverage: 3T4's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: 3T4 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3T4's debt is covered by short term assets (assets are 2.209390x debt).


Next Steps

Dividend

What is Teradata's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.9%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 3T4's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3T4's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 3T4's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3T4's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3T4's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Teradata's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Oliver Ratzesberger (48yo)

0.8yrs

Tenure

US$3,512,763

Compensation

Mr. Oliver Ratzesberger has been President and Chief Executive officer of Teradata Corporation since January 14, 2019. He was Chief Operating Officer of Teradata Corporation since February 5, 2018 until Ja ...


CEO Compensation Analysis

Compensation vs. Market: Oliver has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Oliver's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.9yrs

Average Tenure

58yo

Average Age

Experienced Management: 3T4's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

6.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 3T4's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$310,79207 May 19
Mark Culhane
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares9,050
Max PriceUS$35.18
BuyUS$212,46107 May 19
Mark Culhane
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares6,900
Max PriceUS$30.82
SellUS$510,04815 Mar 19
Lisa Bacus
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,000
Max PriceUS$42.50

Ownership Breakdown


Management Team

  • Mark Culhane (59yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: US$3.46m
  • Vic Lund (71yo)

    Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: US$8.77m
  • Laura Nyquist (66yo)

    General Counsel

    • Tenure: 12.8yrs
    • Compensation: US$1.11m
  • Stephen Brobst

    Chief Technology Officer

    • Tenure: 0yrs
  • Dan Harrington (56yo)

    Chief Services Officer

    • Tenure: 12yrs
    • Compensation: US$2.50m
  • Molly Treese

    Chief Corporate & Governance Counsel and Secretary

    • Tenure: 12.2yrs
  • Gregg Swearingen

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Martyn Etherington (57yo)

    Chief Marketing Officer

    • Tenure: 1.6yrs
  • Oliver Ratzesberger (48yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$3.51m
  • Kathy Cullen-Cote

    Chief Human Resources Officer

    • Tenure: 0.3yrs

Board Members

  • John Schwarz (68yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$348.03k
  • Vic Lund (71yo)

    Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: US$8.77m
  • Cary Fu (70yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$328.03k
  • Jim Ringler (74yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$441.78k
  • Timothy C. Chou (64yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$328.03k
  • Bill Stavropoulos (80yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$319.28k
  • Dave Kepler (67yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$363.03k
  • Mike Gianoni (58yo)

    Independent Lead Director

    • Tenure: 0.8yrs
    • Compensation: US$334.28k
  • Lisa Bacus (54yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$323.03k
  • Oliver Ratzesberger (48yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$3.51m

Company Information

Teradata Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teradata Corporation
  • Ticker: 3T4
  • Exchange: DB
  • Founded: 1979
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$3.382b
  • Listing Market Cap: US$3.069b
  • Shares outstanding: 114.10m
  • Website: https://www.teradata.com

Number of Employees


Location

  • Teradata Corporation
  • 17095 Via Del Campo
  • San Diego
  • California
  • 92127
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TDCNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2007
3T4DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2007
0LEELSE (London Stock Exchange)YesCommon StockGBUSDSep 2007

Biography

Teradata Corporation provides hybrid cloud analytics software. Its solutions and services comprise software, hardware, and related business consulting and support services to deliver analytics in company’s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:56
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.