DB:NCR1

Stock Analysis Report

Executive Summary

NCR Corporation provides software and services for the financial, retail, hospitality, telecommunications, and technology industries worldwide.


Snowflake Analysis

Fair value with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NCR1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.0%

NCR1

-8.0%

DE Tech

-5.7%

DE Market


1 Year Return

10.7%

NCR1

4.6%

DE Tech

6.1%

DE Market

Return vs Industry: NCR1 exceeded the German Tech industry which returned 4.6% over the past year.

Return vs Market: NCR1 exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

NCR1IndustryMarket
7 Day-8.0%-8.0%-5.7%
30 Day-13.2%-12.4%-5.7%
90 Day-9.2%8.3%-3.6%
1 Year10.7%10.7%5.4%4.6%9.3%6.1%
3 Year-40.4%-40.4%137.0%132.0%8.9%-0.7%
5 Year5.5%5.5%82.6%61.1%13.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NCR1 (€27.6) is trading below our estimate of fair value (€33.83)

Significantly Below Fair Value: NCR1 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NCR1 is good value based on its PE Ratio (7.2x) compared to the Tech industry average (23.1x).

PE vs Market: NCR1 is good value based on its PE Ratio (7.2x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: NCR1's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NCR1 is overvalued based on its PB Ratio (3.4x) compared to the XE Tech industry average (1.3x).


Next Steps

Future Growth

How is NCR forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-27.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCR1's earnings are forecast to decline over the next 3 years (-27.6% per year).

Earnings vs Market: NCR1's earnings are forecast to decline over the next 3 years (-27.6% per year).

High Growth Earnings: NCR1's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NCR1's revenue (0.8% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: NCR1's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NCR1's Return on Equity is forecast to be high in 3 years time (29.8%)


Next Steps

Past Performance

How has NCR performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NCR1 has high quality earnings.

Growing Profit Margin: NCR1 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NCR1's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: NCR1 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NCR1 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (-8.4%).


Return on Equity

High ROE: Whilst NCR1's Return on Equity (40.88%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NCR's financial position?


Financial Position Analysis

Short Term Liabilities: NCR1's short term assets ($3.1B) exceed its short term liabilities ($2.5B).

Long Term Liabilities: NCR1's short term assets ($3.1B) do not cover its long term liabilities ($4.9B).


Debt to Equity History and Analysis

Debt Level: NCR1's debt to equity ratio (230.4%) is considered high.

Reducing Debt: NCR1's debt to equity ratio has increased from 190.9% to 230.4% over the past 5 years.

Debt Coverage: NCR1's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: NCR1's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: NCR1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: NCR1's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NCR1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NCR1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NCR1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NCR1'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 NCR1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Mike Hayford (59yo)

1.8yrs

Tenure

US$14,239,889

Compensation

Mr. Michael Dale Hayford, also known as Mike, C.P.A., is the President, Chief Executive Officer and Director of NCR Corporation since April 30, 2018. He was Founder and Senior Advisor at Motive Capital Man ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD14.24M) is above average for companies of similar size in the German market ($USD2.52M).

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Frank Martire
Executive Chairman1.8yrsUS$7.18m0.028% $984.6k
Michael Hayford
President1.8yrsUS$14.24m0.11% $3.8m
Andre Fernandez
CFO & Executive VP1.5yrsUS$4.51m0.047% $1.6m
Owen Sullivan
Chief Operating Officer1.6yrsUS$6.85m0.057% $2.0m
Daniel Campbell
Executive Vice President of Global Sales2yrsUS$6.51mno data
Beth Potter
Chief Accounting Officer & Corporate Controller0.3yrsno data0.010% $360.8k
Tim Vanderham
Senior VP & CTO1.6yrsno datano data
William VanCuren
Senior VP & Chief Information Officer3.8yrsno datano data
Michael Nelson
Vice President of Investor Relations0yrsno datano data
James Bedore
EVP, General Counsel & Corporate Secretary1.3yrsno data0.021% $732.0k

1.6yrs

Average Tenure

59yo

Average Age

Experienced Management: NCR1's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Frank Martire
Executive Chairman1.8yrsUS$7.18m0.028% $984.6k
Michael Hayford
President1.8yrsUS$14.24m0.11% $3.8m
Chinh Chu
Independent Lead Director4yrsUS$364.08k0.026% $900.4k
Linda Fayne Levinson
Independent Director23.1yrsUS$380.05k0.14% $5.0m
Robert DeRodes
Independent Director11.8yrsUS$320.02k0.046% $1.6m
Richard Clemmer
Independent Director11.8yrsUS$330.57k0.019% $657.6k
Deborah Farrington
Director2.3yrsUS$320.02k0.00057% $19.8k
Matthew Thompson
Independent Director2.3yrsUS$316.27k0.00070% $24.4k
Kurt Kuehn
Independent Director7.8yrsUS$339.02k0.0015% $51.1k
Gregory Blank
Independent Director4.2yrsno datano data

4.1yrs

Average Tenure

66.5yo

Average Age

Experienced Board: NCR1's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: NCR Corporation
  • Ticker: NCR1
  • Exchange: DB
  • Founded: 1884
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$3.785b
  • Listing Market Cap: US$3.479b
  • Shares outstanding: 127.70m
  • Website: https://www.ncr.com

Number of Employees


Location

  • NCR Corporation
  • 864 Spring Street Northwest
  • Atlanta
  • Georgia
  • 30308
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NCRNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1996
NCR1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1996
0K45LSE (London Stock Exchange)YesCommon StockGBUSDDec 1996

Biography

NCR Corporation provides software and services for the financial, retail, hospitality, telecommunications, and technology industries worldwide. The company’s Software segment offers industry-based software platforms, applications, and application suites for the financial services, retail, hospitality, and small business industries; and cash management software, video banking software, fraud and loss prevention, check and document imaging, remote-deposit capture, and customer-facing mobile and digital banking applications for the financial services industry. This segment also provides electronic and mobile payment solutions, sector-specific point of sale (POS) software applications, and back-office inventory, and store and restaurant management applications for the retail and hospitality industries; and software support and maintenance, and consulting and implementation services for its software solutions. Its Services segment offers assessment and preparation, staging, installation, implementation, and maintenance and support; and systems management and managed services for its hardware solutions, as well as installation, maintenance, and services for third party networking products and computer hardware. The company’s Hardware segment offers multi-function and thin-client ATMs, interactive teller machines, cash dispensers, cash recycling ATMs, and hardware for check and image processing; financial services hardware; and POS terminals, self-checkout kiosks, order and payment kiosks, bar code scanners, printers, and peripherals to retailers, restaurants, food service companies, and entertainment and sports venues. This segment also provides self-check in/out kiosk solutions for airlines, hotels, and casinos; and wayfinding solutions, digital signage, bill payment kiosks, and gift registries, as well as resells third party networking products. NCR Corporation was founded in 1884 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 20:55
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.