company background image
TDC

TeradataNYSE:TDC Stock Report

Last Price

US$43.80

Market Cap

US$4.8b

7D

-2.2%

1Y

72.0%

Updated

17 Jan, 2022

Data

Company Financials +
TDC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends0/6

TDC Stock Overview

Teradata Corporation, together with its subsidiaries, operates as a hybrid cloud analytics software provider.

Teradata Competitors

Microsoft

NasdaqGS:MSFT

US$2.3t

Check Point Software Technologies

NasdaqGS:CHKP

US$16.8b

Dolby Laboratories

NYSE:DLB

US$9.3b

Commvault Systems

NasdaqGS:CVLT

US$3.2b

Price History & Performance

Summary of all time highs, changes and price drops for Teradata
Historical stock prices
Current Share PriceUS$43.80
52 Week HighUS$59.58
52 Week LowUS$24.50
Beta1.14
1 Month Change2.43%
3 Month Change-23.06%
1 Year Change71.97%
3 Year Change-0.41%
5 Year Change54.23%
Change since IPO69.11%

Recent News & Updates

Jan 06
At US$42.61, Is Teradata Corporation (NYSE:TDC) Worth Looking At Closely?

At US$42.61, Is Teradata Corporation (NYSE:TDC) Worth Looking At Closely?

While Teradata Corporation ( NYSE:TDC ) might not be the most widely known stock at the moment, it received a lot of...

Dec 24
Teradata Corporation's (NYSE:TDC) Intrinsic Value Is Potentially 77% Above Its Share Price

Teradata Corporation's (NYSE:TDC) Intrinsic Value Is Potentially 77% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Teradata Corporation...

Dec 16

Teradata's Recent 25% Stock Drop Is An Opportunity

As can be seen by my previous SA articles, I went from hot to cold on Teradata. The Q3 report was as expected: yoy revenue growth was anemic. That said, the resulting 25% drop in the stock price has been an overreaction in my opinion. The balance sheet is strong, TDC is FCF positive, ARR could reach $1 billion annually by 2025, and a forward P/E of 19.9x is a huge discount to competitor Snowflake. The company could deliver $3.50/share in FCF this year, and the $1.3 billion buyback plan bodes well for shareholders considering TDC's market cap is only $4.5 billion.

Oct 18
Teradata (NYSE:TDC) Could Easily Take On More Debt

Teradata (NYSE:TDC) Could Easily Take On More Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

TDCUS SoftwareUS Market
7D-2.2%-2.2%-0.3%
1Y72.0%17.2%13.7%

Return vs Industry: TDC exceeded the US Software industry which returned 17.2% over the past year.

Return vs Market: TDC exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is TDC's price volatile compared to industry and market?
TDC volatility
TDC Average Weekly Movement6.1%
Software Industry Average Movement8.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: TDC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TDC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19797,543Steve McMillanhttps://www.teradata.com

Teradata Corporation, together with its subsidiaries, operates as a hybrid cloud analytics software provider. Its solutions and services comprise software, hardware, and related business consulting and support services to deliver analytics in company’s analytical ecosystem. The company offers Teradata Vantage, a data warehouse and analytics platform.

Teradata Fundamentals Summary

How do Teradata's earnings and revenue compare to its market cap?
TDC fundamental statistics
Market CapUS$4.75b
Earnings (TTM)US$119.00m
Revenue (TTM)US$1.93b

39.9x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TDC income statement (TTM)
RevenueUS$1.93b
Cost of RevenueUS$748.00m
Gross ProfitUS$1.19b
ExpensesUS$1.07b
EarningsUS$119.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 07, 2022

Earnings per share (EPS)1.10
Gross Margin61.30%
Net Profit Margin6.16%
Debt/Equity Ratio96.5%

How did TDC perform over the long term?

See historical performance and comparison

Valuation

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

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TDC ($43.8) is trading below our estimate of fair value ($76.86)

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


Price To Earnings Ratio

PE vs Industry: TDC is good value based on its PE Ratio (39.9x) compared to the US Software industry average (43.2x).

PE vs Market: TDC is poor value based on its PE Ratio (39.9x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: TDC is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: TDC is overvalued based on its PB Ratio (10.4x) compared to the US Software industry average (5.1x).


Future Growth

How is Teradata forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TDC's forecast earnings growth (7% per year) is above the savings rate (2%).

Earnings vs Market: TDC's earnings (7% per year) are forecast to grow slower than the US market (13% per year).

High Growth Earnings: TDC's earnings are forecast to grow, but not significantly.

Revenue vs Market: TDC's revenue (3.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: TDC's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TDC's Return on Equity is forecast to be very high in 3 years time (54.1%).


Past Performance

How has Teradata performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TDC has a large one-off loss of $51.0M impacting its September 30 2021 financial results.

Growing Profit Margin: TDC's current net profit margins (6.2%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: TDC's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: TDC's earnings growth over the past year (13.3%) is below its 5-year average (14.3% per year).

Earnings vs Industry: TDC earnings growth over the past year (13.3%) underperformed the Software industry 20%.


Return on Equity

High ROE: TDC's Return on Equity (26%) is considered high.


Financial Health

How is Teradata's financial position?


Financial Position Analysis

Short Term Liabilities: TDC's short term assets ($1.1B) exceed its short term liabilities ($955.0M).

Long Term Liabilities: TDC's short term assets ($1.1B) exceed its long term liabilities ($722.0M).


Debt to Equity History and Analysis

Debt Level: TDC has more cash than its total debt.

Reducing Debt: TDC's debt to equity ratio has increased from 61.7% to 96.5% over the past 5 years.

Debt Coverage: TDC's debt is well covered by operating cash flow (96.1%).

Interest Coverage: TDC's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate TDC'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 TDC's dividends per share have been stable in the past.

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


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Steve McMillan (50 yo)

1.58yrs

Tenure

US$14,329,531

Compensation

Mr. Stephen McMillan, also known as Steve, serves President, Chief Executive Officer and Director at Teradata Corporation since June 8, 2020. He served as Executive Vice President of Global Services at F5...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD14.33M) is above average for companies of similar size in the US market ($USD5.13M).

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


Leadership Team

Experienced Management: TDC's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: TDC's board of directors are considered experienced (5 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Teradata Corporation
  • Ticker: TDC
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$4.752b
  • Shares outstanding: 108.50m
  • Website: https://www.teradata.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:36
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.