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Teradata

NYSE:TDC
Snowflake Description

Adequate balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TDC
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Teradata Corporation provides hybrid cloud analytics software. The last earnings update was 18 days ago. More info.


Add to Portfolio Compare Print
  • Teradata has significant price volatility in the past 3 months.
TDC Share Price and Events
7 Day Returns
-3.8%
NYSE:TDC
0.6%
US Software
0.2%
US Market
1 Year Returns
-10.5%
NYSE:TDC
25.5%
US Software
2.9%
US Market
TDC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Teradata (TDC) -3.8% -23.7% -26% -10.5% 24.1% -17.4%
US Software 0.6% 1.9% 9.7% 25.5% 117.7% 157.3%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • TDC underperformed the Software industry which returned 25.5% over the past year.
  • TDC underperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
TDC
Industry
5yr Volatility vs Market

Value

 Is Teradata undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Teradata to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Teradata.

NYSE:TDC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TDC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.15
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.154 (1 + (1- 21%) (15.65%))
1.199
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.199 * 5.96%)
9.87%

Discounted Cash Flow Calculation for NYSE:TDC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Teradata is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:TDC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.87%)
2019 171.06 Analyst x7 155.69
2020 279.13 Analyst x9 231.22
2021 372.00 Analyst x2 280.46
2022 429.00 Analyst x1 294.37
2023 475.28 Est @ 10.79% 296.82
2024 515.07 Est @ 8.37% 292.76
2025 549.46 Est @ 6.68% 284.25
2026 579.65 Est @ 5.49% 272.92
2027 606.69 Est @ 4.66% 259.98
2028 631.47 Est @ 4.08% 246.28
Present value of next 10 years cash flows $2,614.72
NYSE:TDC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $631.47 × (1 + 2.73%) ÷ (9.87% – 2.73%)
$9,081.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,081.31 ÷ (1 + 9.87%)10
$3,541.81
NYSE:TDC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,614.72 + $3,541.81
$6,156.53
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,156.53 / 116.62
$52.79
NYSE:TDC Discount to Share Price
Calculation Result
Value per share (USD) From above. $52.79
Current discount Discount to share price of $34.68
= -1 x ($34.68 - $52.79) / $52.79
34.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Teradata is available for.
Intrinsic value
34%
Share price is $34.68 vs Future cash flow value of $52.79
Current Discount Checks
For Teradata to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Teradata's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Teradata's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Teradata's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Teradata's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TDC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.23
NYSE:TDC Share Price ** NYSE (2019-05-23) in USD $34.68
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 55.97x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Teradata.

NYSE:TDC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TDC Share Price ÷ EPS (both in USD)

= 34.68 ÷ 0.23

151.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Teradata is overvalued based on earnings compared to the US Software industry average.
  • Teradata is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Teradata's expected growth come at a high price?
Raw Data
NYSE:TDC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 151.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
51.8%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.09x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:TDC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 151.73x ÷ 51.8%

2.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Teradata is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Teradata's assets?
Raw Data
NYSE:TDC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $3.99
NYSE:TDC Share Price * NYSE (2019-05-23) in USD $34.68
United States of America Software Industry PB Ratio Median Figure of 222 Publicly-Listed Software Companies 5.69x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NYSE:TDC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TDC Share Price ÷ Book Value per Share (both in USD)

= 34.68 ÷ 3.99

8.7x

* Primary Listing of Teradata.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Teradata is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Teradata's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Teradata has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Teradata expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
51.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Teradata expected to grow at an attractive rate?
  • Teradata's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Teradata's earnings growth is expected to exceed the United States of America market average.
  • Teradata's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TDC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TDC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 51.8%
NYSE:TDC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 2.8%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TDC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TDC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 2,327 534 282 1
2021-12-31 2,092 573 209 5
2020-12-31 2,041 413 135 17
2019-12-31 1,988 276 56 18
NYSE:TDC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,126 229 27
2018-12-31 2,164 364 30
2018-09-30 2,202 280 -59
2018-06-30 2,202 305 -64
2018-03-31 2,171 260 -72
2017-12-31 2,156 324 -67
2017-09-30 2,156 353 65
2017-06-30 2,182 406 101
2017-03-31 2,268 444 169
2016-12-31 2,322 446 125
2016-09-30 2,415 425 18
2016-06-30 2,469 448 47

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Teradata's earnings are expected to grow significantly at over 20% yearly.
  • Teradata's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TDC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Teradata Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TDC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 1.48 1.48 1.48 1.00
2020-12-31 1.27 1.61 0.97 6.00
2019-12-31 0.47 0.67 0.34 6.00
NYSE:TDC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.23
2018-12-31 0.25
2018-09-30 -0.49
2018-06-30 -0.53
2018-03-31 -0.58
2017-12-31 -0.53
2017-09-30 0.51
2017-06-30 0.78
2017-03-31 1.30
2016-12-31 0.96
2016-09-30 0.14
2016-06-30 0.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Teradata is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Teradata's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Teradata has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Teradata performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Teradata's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Teradata's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Teradata has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Teradata has become profitable in the last year making it difficult to compare the US Software industry average.
Earnings and Revenue History
Teradata's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Teradata Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TDC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,126.00 27.00 665.00 320.00
2018-12-31 2,164.00 30.00 666.00 317.00
2018-09-30 2,202.00 -59.00 652.00 314.00
2018-06-30 2,202.00 -64.00 647.00 310.00
2018-03-31 2,171.00 -72.00 648.00 310.00
2017-12-31 2,156.00 -67.00 651.00 305.00
2017-09-30 2,156.00 65.00 640.00 286.00
2017-06-30 2,182.00 101.00 638.00 252.00
2017-03-31 2,268.00 169.00 645.00 225.00
2016-12-31 2,322.00 125.00 662.00 212.00
2016-09-30 2,415.00 18.00 717.00 209.00
2016-06-30 2,469.00 47.00 737.00 214.00
2016-03-31 2,493.00 -282.00 755.00 222.00
2015-12-31 2,530.00 -214.00 765.00 228.00
2015-09-30 2,572.00 -47.00 766.00 227.00
2015-06-30 2,633.00 -31.00 768.00 222.00
2015-03-31 2,686.00 330.00 766.00 213.00
2014-12-31 2,732.00 367.00 770.00 206.00
2014-09-30 2,740.00 361.00 767.00 196.00
2014-06-30 2,739.00 365.00 769.00 193.00
2014-03-31 2,733.00 377.00 766.00 190.00
2013-12-31 2,692.00 377.00 757.00 184.00
2013-09-30 2,663.00 377.00 757.00 190.00
2013-06-30 2,644.00 383.00 748.00 191.00
2013-03-31 2,639.00 387.00 742.00 187.00
2012-12-31 2,665.00 419.00 728.00 183.00
2012-09-30 2,598.00 405.00 703.00 189.00
2012-06-30 2,553.00 388.00 692.00 188.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Teradata has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Teradata used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Teradata's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Teradata's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Teradata has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Teradata's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Teradata's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Teradata is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Teradata's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Teradata's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Teradata Company Filings, last reported 1 month ago.

NYSE:TDC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 467.00 633.00 723.00
2018-12-31 495.00 544.00 715.00
2018-09-30 560.00 497.00 768.00
2018-06-30 572.00 497.00 882.00
2018-03-31 644.00 524.00 939.00
2017-12-31 668.00 778.00 1,089.00
2017-09-30 719.00 726.00 1,025.00
2017-06-30 872.00 553.00 1,085.00
2017-03-31 954.00 561.00 1,164.00
2016-12-31 971.00 568.00 974.00
2016-09-30 932.00 575.00 988.00
2016-06-30 864.00 582.00 909.00
2016-03-31 794.00 670.00 917.00
2015-12-31 849.00 777.00 839.00
2015-09-30 996.00 710.00 874.00
2015-06-30 1,186.00 600.00 921.00
2015-03-31 1,444.00 600.00 881.00
2014-12-31 1,707.00 468.00 834.00
2014-09-30 1,842.00 255.00 848.00
2014-06-30 1,862.00 225.00 934.00
2014-03-31 1,849.00 240.00 922.00
2013-12-31 1,857.00 274.00 695.00
2013-09-30 1,918.00 255.00 862.00
2013-06-30 1,790.00 263.00 826.00
2013-03-31 1,753.00 271.00 853.00
2012-12-31 1,779.00 289.00 729.00
2012-09-30 1,878.00 278.00 909.00
2012-06-30 1,735.00 282.00 821.00
  • Teradata's level of debt (135.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (13% vs 135.5% today).
  • Debt is well covered by operating cash flow (36.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).
X
Financial health checks
We assess Teradata's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Teradata has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Teradata dividends. Estimated to be 0% next year.
If you bought $2,000 of Teradata shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Teradata's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Teradata's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TDC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TDC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Teradata has not reported any payouts.
  • Unable to verify if Teradata's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Teradata's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Teradata has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Teradata's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Teradata's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Teradata afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Teradata has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Oliver Ratzesberger
COMPENSATION $3,512,763
AGE 47
TENURE AS CEO 0.3 years
CEO Bio

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 January 15, 2019 and has been its Director November 19, 2018. Previously, he was Chief Product Officer and Executive Vice President of Teradata Corporation from August 08, 2016 to February 5, 2018. Mr. Ratzesberger served as the President of Teradata Labs at Teradata Corporation since June 2015 until August 08, 2016. Mr. Ratzesberger provides visionary direction for all research, development and sales support activities related to Teradata integrated data warehousing, big data analytics and associated solutions. He led the software teams for Teradata Labs, including the Teradata Database, Aster, Client tools and Viewpoint as well as Hadoop integration. Joining Teradata in early 2013, he has a powerful and impressive background in leading big data analytics initiatives and technology transformation for Fortune 500 organizations. For example, Oliver drove a large analytics effort to consolidate systems into a newly redesigned Unified Data Architecture. He has a successful background in driving analytics culture and advancing the value of high-volume and high-velocity analytics solutions. He spent seven years at eBay, where he was responsible for its data warehouse and big data platforms. During his tenure at eBay, he led eBay’s expansion of analytics and was responsible for the co-development of the Extreme Data Appliance as part of eBay's Singularity project, leading Hadoop engineering teams and driving the integration of Teradata and Hadoop. He worked for startups in software development and IT. In addition he has an extensive background in Open Source software development and has been an active contributor and committer to various projects. In 1996, he joined NCR Corporation as a senior consultant for data warehousing in Vienna, Austria – and in 1999 moved to Orange County, CA where he led professional service engagements for Telecom and eBusiness. As director of professional services, he was responsible for projects at Verizon, ATT, T-Mobile, eBay and Excite, among others. Mr. Ratzesberger earned his Engineering Degree in Electronics and Telecommunications from HTL Steyr in Austri and is a graduate of Harvard Business School’s Advanced Management Program.

CEO Compensation
  • Oliver's compensation has increased in line with Teradata recently becoming profitable.
  • Oliver's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Teradata management team in years:

1.5
Average Tenure
56
Average Age
  • The average tenure for the Teradata management team is less than 2 years, this suggests a new team.
Management Team

Vic Lund

TITLE
Executive Chairman
COMPENSATION
$9M
AGE
70

Oliver Ratzesberger

TITLE
President
COMPENSATION
$4M
AGE
47
TENURE
0.3 yrs

Mark Culhane

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
58
TENURE
1.5 yrs

Dan Harrington

TITLE
Chief Services Officer
COMPENSATION
$2M
AGE
55
TENURE
11.6 yrs

Stephen Brobst

TITLE
Chief Technology Officer

Gregg Swearingen

TITLE
Vice President of Investor Relations

Laura Nyquist

TITLE
General Counsel & Chief Human Resource Officer
COMPENSATION
$1M
AGE
65
TENURE
12.3 yrs

Martyn Etherington

TITLE
Chief Marketing Officer
AGE
56
TENURE
1.2 yrs

Molly Treese

TITLE
Chief Corporate & Governance Counsel and Secretary
TENURE
11.8 yrs

Reema Poddar

TITLE
Chief Product Officer
AGE
50
TENURE
0.6 yrs
Board of Directors Tenure

Average tenure and age of the Teradata board of directors in years:

6.5
Average Tenure
66.5
Average Age
  • The tenure for the Teradata board of directors is about average.
Board of Directors

Oliver Ratzesberger

TITLE
President
COMPENSATION
$4M
AGE
47
TENURE
0.5 yrs

Jim Ringler

TITLE
Director
COMPENSATION
$442K
AGE
73
TENURE
11.7 yrs

Vic Lund

TITLE
Executive Chairman
COMPENSATION
$9M
AGE
70
TENURE
0.3 yrs

Dave Kepler

TITLE
Director
COMPENSATION
$363K
AGE
66
TENURE
11.5 yrs

John Schwarz

TITLE
Director
COMPENSATION
$348K
AGE
67
TENURE
8.7 yrs

Mike Gianoni

TITLE
Independent Lead Director
COMPENSATION
$334K
AGE
57
TENURE
0.3 yrs

Bill Stavropoulos

TITLE
Director
COMPENSATION
$319K
AGE
79
TENURE
11.7 yrs

Cary Fu

TITLE
Director
COMPENSATION
$328K
AGE
69
TENURE
10.8 yrs

Lisa Bacus

TITLE
Director
COMPENSATION
$323K
AGE
53
TENURE
4.3 yrs

Timothy C. Chou

TITLE
Director
COMPENSATION
$328K
AGE
63
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • Teradata insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. May 19 Buy Mark Culhane Individual 06. May 19 07. May 19 9,050 $39.35 $347,603
15. Mar 19 Sell Lisa Bacus Individual 14. Mar 19 14. Mar 19 -12,000 $48.04 $-576,456
07. May 19 Buy Mark Culhane Individual 05. Nov 18 05. Nov 18 6,900 $35.14 $242,259
15. Aug 18 Sell Daniel Harrington Individual 13. Aug 18 13. Aug 18 -13,000 $40.35 $-524,550
X
Management checks
We assess Teradata's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Teradata has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What You Must Know About Teradata Corporation's (NYSE:TDC) Beta Value

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … While history does not always repeat, this may indicate that the stock price will continue to be exposed to market risk, albeit not overly so.

Simply Wall St -

Are Teradata Corporation's (NYSE:TDC) Interest Costs Too High?

Help shape the future of investing tools and you could win a $250 gift card! … Stocks with market capitalization between $2B and $10B, such as Teradata Corporation (NYSE:TDC) with a size of US$4.6b, do not attract as much attention from the investing community as do the small-caps and large-caps. … This article will examine TDC’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth.

Simply Wall St -

Are Investors Undervaluing Teradata Corporation (NYSE:TDC) By 33%?

Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model? … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth … In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate.

Simply Wall St -

Should You Worry About Teradata Corporation’s (NYSE:TDC) ROCE?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Does Teradata's Share Price Gain of 80% Match Its Business Performance?

We think revenue is probably a better guide. … Many high growth companies focus on growing revenue before profits, but if revenue is the focus, it really needs to grow. … As you can imagine, it's easy to imagine a fast growing company becoming (potentially very) profitable, but when revenue growth slows, then the potential upside often seems less impressive.

Simply Wall St -

Read This Before Judging Teradata Corporation's (NYSE:TDC) ROE

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.061 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Need To Know: Teradata Corporation (NYSE:TDC) Insiders Have Been Selling Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in Teradata Corporation (NYSE:TDC). … That means that an insider was selling shares at slightly below the current price (US$43.98).

Simply Wall St -

Should You Worry About Teradata Corporation’s (NYSE:TDC) ROCE?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

A Look At The Fair Value Of Teradata Corporation (NYSE:TDC)

In this article I am going to calculate the intrinsic value of Teradata Corporation (NYSE:TDC). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Here's What We Think About Teradata Corporation's (NYSE:TDC) CEO Pay

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … According to our data, Teradata Corporation has a market capitalization of US$4.4b, and pays its CEO total annual compensation worth US$11m. … As you can see, Vic Lund is paid more than the median CEO pay at companies of a similar size, in the same market

Simply Wall St -

Company Info

Description

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 analytical ecosystem. It operates through three segments: North America and Latin America region; Europe, Middle East and Africa region; and Asia Pacific and Japan region. The company offers Teradata Vantage, an analytics platform that provides pervasive data intelligence; and Teradata IntelliCloud, an as-a-service solution for the management of performance, security, availability, and operations of software and infrastructure. Its business consulting services include various offerings, such as consulting to help organizations establish an analytic vision, and identify and operationalize analytical opportunities, as well as enable an analytical ecosystem architecture. The company also provides maintenance services. It serves various industries comprising communications, financial services, government, healthcare, insurance, manufacturing, media and entertainment, oil and gas, retail, travel and transportation, and utilities. The company sells its solutions and services through a direct sales force. Teradata Corporation was founded in 1979 and is headquartered in San Diego, California.

Details
Name: Teradata Corporation
TDC
Exchange: NYSE
Founded: 1979
$4,044,541,682
116,624,616
Website: http://www.teradata.com
Address: Teradata Corporation
17095 Via Del Campo,
San Diego,
California, 92127,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TDC Common Stock New York Stock Exchange US USD 12. Sep 2007
DB 3T4 Common Stock Deutsche Boerse AG DE EUR 12. Sep 2007
LSE 0LEE Common Stock London Stock Exchange GB USD 12. Sep 2007
Number of employees
Current staff
Staff numbers
10,152
Teradata employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 00:05
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.