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NCR

NCR NYSE:NCR Stock Report

Last Price

US$33.10

Market Cap

US$4.3b

7D

6.7%

1Y

-29.0%

Updated

24 Jun, 2022

Data

Company Financials +
NCR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health1/6
Dividends0/6

NCR Stock Overview

NCR Corporation provides various software and services worldwide.

NCR Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for NCR
Historical stock prices
Current Share PriceUS$33.10
52 Week HighUS$48.94
52 Week LowUS$28.00
Beta1.59
1 Month Change1.82%
3 Month Change-20.34%
1 Year Change-28.97%
3 Year Change6.43%
5 Year Change-18.95%
Change since IPO83.25%

Recent News & Updates

May 26

NCR: The Numbers Don't Add Up

In its SEC filings, NCR notes - 'GAAP diluted EPS and non-GAAP diluted EPS may not mathematically reconcile.' In layman's terms, the numbers do not add up. I had a boss once who was fond of gems like, 'figures don't lie, but liars can figure' and 'numbers are dangerous'. Under his mentorship, I developed a healthy skepticism for numbers in financial reports, whether or not they added up. I have filled in the missing gaps in NCR's financial presentations to better understand why and how GAAP and non-GAAP results differ, and of how much concern the differences should be to investors. But of greater concern, the numbers show the hundreds of millions spent on non-GAAP costs of transformation and restructuring, are not bringing the promised savings.

Shareholder Returns

NCRUS SoftwareUS Market
7D6.7%7.7%4.0%
1Y-29.0%-21.3%-20.5%

Return vs Industry: NCR underperformed the US Software industry which returned -21.3% over the past year.

Return vs Market: NCR underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is NCR's price volatile compared to industry and market?
NCR volatility
NCR Average Weekly Movement10.6%
Software Industry Average Movement10.9%
Market Average Movement7.9%
10% most volatile stocks in US Market16.5%
10% least volatile stocks in US Market3.1%

Stable Share Price: NCR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: NCR's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188138,000Mike Hayfordhttps://www.ncr.com

NCR Corporation provides various software and services worldwide. It operates through Banking, Retail, Hospitality, and Telecommunications and Technology segments. The company offers managed services and ATM-as-a-Service that allow banks to run their end-to-end ATM channels; software, services, and hardware; and digital banking solutions for financial institution’s consumer and business customers.

NCR Fundamentals Summary

How do NCR's earnings and revenue compare to its market cap?
NCR fundamental statistics
Market CapUS$4.30b
Earnings (TTM)US$17.00m
Revenue (TTM)US$7.48b

266.0x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NCR income statement (TTM)
RevenueUS$7.48b
Cost of RevenueUS$5.53b
Gross ProfitUS$1.94b
Other ExpensesUS$1.93b
EarningsUS$17.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin26.00%
Net Profit Margin0.23%
Debt/Equity Ratio351.0%

How did NCR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NCR?

Other financial metrics that can be useful for relative valuation.

NCR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA9.2x
PEG Ratio2.3x

Price to Sales Ratio vs Peers

How does NCR's PS Ratio compare to its peers?

NCR PS Ratio vs Peers
The above table shows the PS ratio for NCR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average10.5x

Price-To-Sales vs Peers: NCR is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (10.5x).


Price to Earnings Ratio vs Industry

How does NCR's PE Ratio compare vs other companies in the U.S. Software Industry?

Price-To-Sales vs Industry: NCR is good value based on its Price-To-Sales Ratio (0.6x) compared to the US Software industry average (4.5x)


Price to Sales Ratio vs Fair Ratio

What is NCR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NCR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio2.2x

Price-To-Sales vs Fair Ratio: NCR is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (2.2x).


Share Price vs Fair Value

What is the Fair Price of NCR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NCR ($33.1) is trading below our estimate of fair value ($85.1)

Significantly Below Fair Value: NCR is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: NCR is poor value based on its PEG Ratio (2.3x)


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Future Growth

How is NCR forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


114.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCR's forecast earnings growth (114.1% per year) is above the savings rate (1.9%).

Earnings vs Market: NCR's earnings (114.1% per year) are forecast to grow faster than the US market (13.9% per year).

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

Revenue vs Market: NCR's revenue (5.9% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: NCR's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NCR's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has NCR performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-8.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NCR has a large one-off loss of $218.0M impacting its March 31 2022 financial results.

Growing Profit Margin: NCR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NCR's earnings have declined by 8.8% per year over the past 5 years.

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

Earnings vs Industry: NCR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (27.1%).


Return on Equity

High ROE: NCR's Return on Equity (2%) is considered low.


Discover strong past performing companies

Financial Health

How is NCR's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NCR's short term assets ($3.0B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: NCR's short term assets ($3.0B) do not cover its long term liabilities ($7.3B).


Debt to Equity History and Analysis

Debt Level: NCR's net debt to equity ratio (325.2%) is considered high.

Reducing Debt: NCR's debt to equity ratio has increased from 250.9% to 351% over the past 5 years.

Debt Coverage: NCR's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: NCR's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NCR has not reported any payouts.


Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure


CEO

Mike Hayford (61 yo)

4.17yrs

Tenure

US$14,840,501

Compensation

Mr. Michael Dale Hayford, also known as Mike, C.P.A., has been the Chief Executive Officer and Director of NCR Corporation since April 30, 2018 and served as its President since April 30, 2018 until August...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD14.84M) is above average for companies of similar size in the US market ($USD6.92M).

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


Leadership Team

Experienced Management: NCR's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: NCR's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 4.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: NCR Corporation
  • Ticker: NCR
  • Exchange: NYSE
  • Founded: 1881
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$4.297b
  • Shares outstanding: 136.60m
  • Website: https://www.ncr.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.