NCR Atleos (NATL): Evaluating Valuation as Major UK and US Partnerships Expand Network Reach

NCR Atleos (NATL) just announced that Moto, the top motorway service area operator in the UK, is extending its partnership to offer broader access to the Cashzone ATM Network. With over 16,000 ATMs now in the UK, this move brings more customer choice and convenience to frequent travelers and everyday users alike.

See our latest analysis for NCR Atleos.

NCR Atleos has been steadily making moves over the past year, most recently with Moto and just weeks ago expanding its relationship with PenAir Credit Union to broaden ATM and self-service reach. These partnerships highlight building momentum in the core business, reflected in a 0.39% total shareholder return in the past year as investors react to growing confidence in Atleos’s growth and resilience.

If expanding access and new partnerships pique your interest, now is an ideal time to broaden your search and discover fast growing stocks with high insider ownership

With NCR Atleos shares climbing nearly 39% over the past year and currently trading at a modest discount to analyst price targets, investors must now ask if there is a buying opportunity here or if the market is already pricing in further growth.

Most Popular Narrative: 10.6% Undervalued

With the consensus fair value recently raised to $44.67, NCR Atleos shares, last closing at $39.92, are now seen as attractively priced according to the most-followed narrative. Support for this view comes from strong recurring revenues, a swelling customer base, and optimism about expanding service lines.

High recurring revenue mix (over 70% in Q2), significant productivity gains through AI-driven service optimization, and a rapidly scaling backlog are driving strong margin expansion and robust free cash flow. These factors underpin announced share buybacks and sustained EPS growth and suggest that current valuation does not reflect enhanced long-term earnings power.

Read the complete narrative.

Want to know the fuel behind Atleos’s upgraded fair value? The secret lies in recurring revenue, efficiency gains, and a future profit blueprint that rivals industry leaders. Discover which bold growth assumptions and margin expectations are embedded in this bullish outlook. Unlock the full narrative to see what’s driving this valuation math.

Result: Fair Value of $44.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, accelerated consumer adoption of digital banking and increased fintech competition could erode NCR Atleos’s recurring revenue strength and long-term growth prospects.

Find out about the key risks to this NCR Atleos narrative.

Another View: Valuation Through Earnings Multiples

Looking at NCR Atleos through the lens of its price-to-earnings ratio offers a more cautious perspective. Shares currently trade at 22.9x earnings, which is well above both the industry average of 16.5x and the peer average of 12x. The fair ratio for Atleos is estimated at 19.5x, suggesting the current market price might already reflect a good deal of future optimism and leaving less margin for error. Does this higher multiple signal overvaluation risks, or is the premium justified by future growth?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own NCR Atleos Narrative

If you have a different take or want to dig deeper into the numbers yourself, try building your own story in just a few minutes with Do it your way

A great starting point for your NCR Atleos research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Smart Investment Opportunities?

Make sure you do not miss out on high-potential stocks shaping the future. Let Simply Wall St's unique screeners lead you to your next great idea.

• Tap into market up-and-comers by scanning these 3573 penny stocks with strong financials, which are poised for rapid growth and offer solid financials.
• Unlock the potential of powerful recurring income by sorting through these 19 dividend stocks with yields > 3%, featuring consistent yields above 3%.
• Seize the latest breakthroughs by targeting these 25 AI penny stocks, which are making waves in artificial intelligence innovation and industry disruption.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com