Assessing NCR Voyix (VYX) Valuation After Reasserting Global Point-of-Sale Software Leadership

NCR Voyix (VYX) just reaffirmed its status as the world’s largest supplier of point of sale software, keeping the top spot in global retail installations and reclaiming leadership in new restaurant deployments. Investors are asking what that means for the stock.

See our latest analysis for NCR Voyix.

Despite reaffirming its category leadership, NCR Voyix’s share price has had a tougher run this year, with a roughly 27 percent year to date share price decline and a one year total shareholder return of about negative 34 percent. This suggests momentum has been fading even as the business sharpens its POS software edge.

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With shares trading well below analyst targets, yet weighed down by shrinking revenue and past underperformance, the real question now is whether NCR Voyix is an overlooked value play or if the market is rightly skeptical about future growth.

Most Popular Narrative: 39% Undervalued

With the narrative fair value sitting well above NCR Voyix’s last close at $9.83, the valuation case hinges on a sharp profitability reset after shrinking revenues.

Successful transformation toward recurring SaaS and cloud-based models, evidenced by a 16% YoY increase in platform sites and a steady increase in software ARR, is improving gross and EBITDA margins while reducing hardware exposure. This is setting the stage for double digit earnings and free cash flow growth as hardware revenue becomes a smaller portion of the mix.

Read the complete narrative.

Want to see how falling sales still produce that upgrade in value, profitability, and cash flow power? The narrative quietly rewrites the earnings profile.

Result: Fair Value of $16.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent revenue declines and elevated transition costs could delay the profitability reset that investors are counting on, which would challenge the current undervaluation thesis.

Find out about the key risks to this NCR Voyix narrative.

Build Your Own NCR Voyix Narrative

If you see the story differently or prefer to dig into the numbers yourself, you can build a complete view in under three minutes: Do it your way.

A great starting point for your NCR Voyix research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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