NYSE:TDC

Stock Analysis Report

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Executive Summary

Teradata Corporation provides hybrid cloud analytics software. More Details


Snowflake Analysis

Good value with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TDC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TDC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

7.0%

TDC

3.5%

US Software

2.8%

US Market


1 Year Return

-15.7%

TDC

48.0%

US Software

20.9%

US Market

Return vs Industry: TDC underperformed the US Software industry which returned 48% over the past year.

Return vs Market: TDC underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

TDCIndustryMarket
7 Day7.0%3.5%2.8%
30 Day21.9%10.4%12.8%
90 Day-8.0%1.3%6.6%
1 Year-15.7%-15.7%48.9%48.0%23.6%20.9%
3 Year-40.6%-40.6%141.4%133.6%47.3%37.6%
5 Year-24.6%-24.6%222.8%205.6%94.3%72.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TDC ($22.4) is trading below our estimate of fair value ($40.13)

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 (23.4x) compared to the US Software industry average (58.2x).

PE vs Market: TDC is poor value based on its PE Ratio (23.4x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TDC is good value based on its PB Ratio (6.4x) compared to the US Software industry average (8.1x).


Next Steps

Future Growth

How is Teradata forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-31.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TDC's earnings are forecast to decline over the next 3 years (-31.4% per year).

Earnings vs Market: TDC's earnings are forecast to decline over the next 3 years (-31.4% per year).

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

Revenue vs Market: TDC's revenue (2% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: TDC's revenue (2% 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 high in 3 years time (39.9%)


Next Steps

Past Performance

How has Teradata performed over the past 5 years?

35.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TDC has a large one-off loss of $23.0M impacting its September 30 2020 financial results.

Growing Profit Margin: TDC's current net profit margins (5.7%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: TDC has become profitable over the past 5 years, growing earnings by 35.8% per year.

Accelerating Growth: TDC's earnings growth over the past year (670.3%) exceeds its 5-year average (35.8% per year).

Earnings vs Industry: TDC earnings growth over the past year (670.3%) exceeded the Software industry 8.9%.


Return on Equity

High ROE: Whilst TDC's Return on Equity (27.34%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Teradata's financial position?


Financial Position Analysis

Short Term Liabilities: TDC's short term assets ($965.0M) exceed its short term liabilities ($895.0M).

Long Term Liabilities: TDC's short term assets ($965.0M) exceed its long term liabilities ($838.0M).


Debt to Equity History and Analysis

Debt Level: TDC's debt to equity ratio (127.9%) is considered high.

Reducing Debt: TDC's debt to equity ratio has increased from 71.7% to 127.9% over the past 5 years.

Debt Coverage: TDC's debt is well covered by operating cash flow (54%).

Interest Coverage: TDC's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet


Next Steps

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?

1.7yrs

Average management tenure


CEO

Steve McMillan (49 yo)

0.42

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Mark Culhane
Chief Financial Officer3yrsUS$4.77m0.034%
$ 834.6k
Kathleen Cullen-Cote
Chief Human Resources Officer1.33yrsUS$4.66m0.014%
$ 336.6k
Daniel Harrington
Chief Services Officer13.08yrsUS$3.00m0.27%
$ 6.5m
Stephen McMillan
President0.42yrno datano data
Stephen Brobst
Chief Technology Officerno datano datano data
Erica Hausheer
Chief Information Officerno datano datano data
Gregg Swearingen
Vice President of Investor Relationsno datano datano data
Margaret Treese
Chief Legal Officer & Secretaryno datano data0.019%
$ 462.7k
Martyn Etherington
Chief Marketing Officer2.67yrsno data0.015%
$ 362.1k
Nabil Elsheshai
Senior Vice President of Finance and Investor Relations1.58yrsno datano data
Bob Joyce
Executive Vice President of Business Systems1.25yrsno datano data
Hillary Ashton
Chief Product Officer1.83yrsno data0.0012%
$ 28.6k

1.7yrs

Average Tenure

57yo

Average Age

Experienced Management: TDC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen McMillan
President0.42yrno datano data
John Schwarz
Independent Director10.17yrsUS$334.24k0.0016%
$ 38.4k
Cary Fu
Independent Director12.33yrsUS$330.91k0.035%
$ 857.6k
James Ringler
Independent Director13.17yrsUS$330.91k0.11%
$ 2.8m
Timothy C. Chou
Independent Director3.83yrsUS$330.91k0.0026%
$ 62.9k
David Kepler
Independent Director13yrsUS$365.91k0.078%
$ 1.9m
Daniel Fishback
Independent Director3.83yrsUS$342.57k0.0037%
$ 90.1k
Michael Gianoni
Independent Non-Executive Chairman0.67yrUS$365.91k0.035%
$ 864.3k
Kimberly Nelson
Independent Director1yrUS$176.73k0.0014%
$ 34.8k
Lisa Bacus
Independent Director5.83yrsUS$325.91k0.026%
$ 629.7k
Joanne Olsen
Independent Director2.42yrsUS$334.66k0.012%
$ 296.2k

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: TDC's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TDC insiders have only sold shares 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teradata Corporation
  • Ticker: TDC
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$2.448b
  • Shares outstanding: 109.30m
  • Website: https://www.teradata.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TDCNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2007
3T4DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2007
0LEELSE (London Stock Exchange)YesCommon StockGBUSDSep 2007

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 00:08
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.