NYSE:TDC

Stock Analysis Report

Executive Summary

Teradata Corporation provides hybrid cloud analytics software.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.3%

TDC

-7.4%

US Software

-7.6%

US Market


1 Year Return

-57.9%

TDC

27.3%

US Software

10.2%

US Market

Return vs Industry: TDC underperformed the US Software industry which returned 27.3% over the past year.

Return vs Market: TDC underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

TDCIndustryMarket
7 Day-11.3%-7.4%-7.6%
30 Day-20.6%0.2%-4.5%
90 Day-23.4%7.0%-0.6%
1 Year-57.9%-57.9%28.6%27.3%12.5%10.2%
3 Year-34.5%-34.5%132.6%122.8%37.1%28.3%
5 Year-53.8%-53.8%200.3%178.7%60.8%43.2%

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?

30.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TDC ($20.35) is trading below our estimate of fair value ($29.14)

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


Price To Earnings Ratio

PE vs Industry: TDC is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: TDC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TDC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TDC is overvalued based on its PB Ratio (8.6x) compared to the US Software industry average (5.5x).


Next Steps

Future Growth

How is Teradata forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

63.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TDC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: TDC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TDC's is expected to become profitable in the next 3 years.

Revenue vs Market: TDC's revenue (1.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TDC's revenue (1.2% 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 very high in 3 years time (53.7%).


Next Steps

Past Performance

How has Teradata performed over the past 5 years?

-22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TDC is currently unprofitable.

Growing Profit Margin: TDC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TDC is unprofitable, and losses have increased over the past 5 years at a rate of -22.2% per year.

Accelerating Growth: Unable to compare TDC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TDC is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (19%).


Return on Equity

High ROE: TDC has a negative Return on Equity (-9.16%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Teradata's financial position?


Financial Position Analysis

Short Term Liabilities: TDC's short term assets ($1.0B) exceed its short term liabilities ($885.0M).

Long Term Liabilities: TDC's short term assets ($1.0B) exceed its long term liabilities ($910.0M).


Debt to Equity History and Analysis

Debt Level: TDC's debt to equity ratio (182.8%) is considered high.

Reducing Debt: TDC's debt to equity ratio has increased from 27.5% to 182.8% over the past 5 years.


Balance Sheet

Inventory Level: TDC has a high level of physical assets or inventory.

Debt Coverage by Assets: TDC's debt is covered by short term assets (assets are 2.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TDC has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: TDC has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%4.0%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry

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

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

2.1yrs

Average management tenure


CEO

Vic Lund (71yo)

0.3yrs

Tenure

US$8,767,078

Compensation

Mr. Victor Lynn Lund, also known as Vic, has been Interim President and Chief Executive Officer at Teradata Corporation since November 07, 2019. Mr. Lund was the Executive Chairman of the board of Teradata ...


CEO Compensation Analysis

Compensation vs Market: Vic's total compensation ($USD8.77M) is above average for companies of similar size in the US market ($USD3.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Victor Lund
Interim President0.3yrsUS$8.77m0.46% $10.3m
Mark Culhane
Chief Financial Officer2.3yrsUS$3.46m0.027% $614.6k
Daniel Harrington
Chief Services Officer12.3yrsUS$2.50m0.12% $2.7m
Stephen Brobst
Chief Technology Officer0yrsno datano data
Gregg Swearingen
Vice President of Investor Relations0yrsno datano data
Laura Nyquist
General Counsel13.1yrsUS$1.11m0.094% $2.1m
Martyn Etherington
Chief Marketing Officer1.9yrsno data0.014% $319.2k
Kathleen Cullen-Cote
Chief Human Resources Officer0.6yrsno datano data
Margaret Treese
Chief Corporate & Governance Counsel and Secretary12.5yrsno datano data
Scott Brown
Chief Revenue Officer0.7yrsno datano data

2.1yrs

Average Tenure

59yo

Average Age

Experienced Management: TDC's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Victor Lund
Interim President0.3yrsUS$8.77m0.46% $10.3m
John Schwarz
Independent Director9.4yrsUS$348.03k0.0072% $161.5k
Cary Fu
Independent Director11.6yrsUS$328.03k0.035% $791.0k
James Ringler
Independent Director12.4yrsUS$441.78k0.10% $2.3m
Timothy C. Chou
Independent Director3.1yrsUS$328.03k0.017% $385.1k
William Stavropoulos
Independent Director12.4yrsUS$319.28k0.068% $1.5m
David Kepler
Independent Director12.3yrsUS$363.03k0.072% $1.6m
Daniel Fishback
Independent Director3.1yrsUS$323.03k0.0097% $218.7k
Michael Gianoni
Independent Non-Executive Chairman0yrsUS$334.28k0.030% $670.7k
Lisa Bacus
Independent Director5.1yrsUS$323.03k0.020% $445.7k

11.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: TDC's board of directors are seasoned and experienced ( 11.6 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 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$2.259b
  • Shares outstanding: 111.00m
  • 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 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 has a strategic partnership with Deutsche Telekom AG to support the digital transformation goals of small and medium sized businesses in Germany. The company was founded in 1979 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:42
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.