Diebold Nixdorf, Incorporated

OTCPK:DBDQ.Q Stock Report

Market Cap: US$1.9m

This company listing is no longer active

This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Diebold Nixdorf Management

Management criteria checks 1/4

Diebold Nixdorf's CEO is Octavio Marquez, appointed in Mar 2022, has a tenure of 1.42 years. total yearly compensation is $5.66M, comprised of 13.8% salary and 86.2% bonuses, including company stock and options. directly owns 0.42% of the company’s shares, worth $7.86K. The average tenure of the management team and the board of directors is 2.4 years and 1.8 years respectively.

Key information

Octavio Marquez

Chief executive officer

US$5.7m

Total compensation

CEO salary percentage13.78%
CEO tenure1.4yrs
CEO ownership0.4%
Management average tenure2.4yrs
Board average tenure1.8yrs

Recent management updates

Recent updates

Analysis Article • Apr 05

Diebold Nixdorf (NYSE:DBD) Is Looking To Continue Growing Its Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common...
Seeking Alpha • Feb 06

Diebold Nixdorf says CEO Marquez elected chairman among other top-level exec changes, stock down

Diebold Nixdorf (NYSE:DBD) said Monday that president and CEO Octavio Marquez was elected chair of the company, effective Feb. 2, 2023. DBD stock fell as much as -7%. Independent director Arthur Anton was appointed as lead independent director of the board. Gary Greenfield, who joined the board in 2014 and has served as non-executive chairman since 2018, will not stand for re-election as a director at the 2023 annual shareholder meeting. The company also appointed Marjorie Bowen and Emanuel Pearlman as directors of the company effective immediately. The board also anticipates reducing its overall size at the upcoming annual shareholders' meeting.
Seeking Alpha • Dec 28

Diebold Nixdorf: A Free Ride For Retail Bond Holders

Summary The recent debt exchange by Diebold Nixdorf has significantly reduced the probability of a bankruptcy in the near-term. The 5.75% Senior Unsecured Notes due 4/15/2024 remaining outstanding could benefit from the reduced the probability bankruptcy and now yield around 65%. This debt exchange creates a classic "free rider" situation where the non-tendering bondholders gain from the reduced bankruptcy risk, while not absorbing the cost of impairment. A downgrade to "selective default" by the rating agencies could actually create a buying opportunity for those bonds. A “free ride” in distressed bond terminology refers to a situation where bondholders who do not participate in a distressed exchange, benefit from the improvement in the credit quality and/or prospects for repayment of their bonds, without suffering from the change in terms that impacts those bondholders who do participate in the exchange. Typically, when a company is unable to refinance upcoming debt maturities, via the sale of new securities, it will attempt to convince large holders to exchange the upcoming debt maturities for new securities. The new securities can be debt with longer maturities, equity or warrants. The large holders may decide that it is better to own the new securities, than have the company file for bankruptcy. In the private credit markets and with bank loans, these types of transactions occur frequently. With publicly held debt, it is usually not possible to get every small holder to accept the exchange. Thus, the company will set a minimum threshold percentage required for the exchange transaction to be consummated. I have found that such situations can be very rewarding for those who purchase relatively short maturity debt of the distressed company and then see the exchange alleviate the company’s liquidity issues, for at least long enough for the company to be able to redeem the much-reduced amount of the short maturity debt that remains after the exchange transaction is consummated. These situations can be likened to game theory problems such as the “prisoners dilemma”, where if too many bondholders attempt to profit from the “free ride” by not participating in a distressed exchange, then all will lose if the exchange does not do through and the bonds default. Diebold Nixdorf (DBD) is a distressed company whose stock has declined precipitously. In assigning a Ca rating DBD’s Senior Unsecured Notes on May 23, 2022 Moody’s said: Diebold's operating performance has been impacted by pandemic-related supply chain challenges, which were unexpectedly exacerbated in Q1 2022 by social distancing measures in China and the Russia-Ukraine conflict. The supply chain difficulties resulted in elevated input costs, elevated logistics costs, and component supply delays impacting timing of finished product deliveries. While the company expects these challenges to gradually abate over the course of 2022, in the near-term they are resulting in cost pressures and working capital inefficiencies. Diebold is raising product pricing to sustain margins, but it may have difficulty raising prices on a sufficiently large portion of volumes quickly enough or to the full extent of the cost inflation. While continued strong order bookings and backlog are indicative of the sustained strong demand for Diebold's differentiated solutions, in the near-term the company's profitability and cash flow generation are likely to be affected. The operating dislocation comes at a difficult time for Diebold due to near-term debt maturities…. As shown in the graph below, a year ago the DBD 5.75% Senior Unsecured Notes due 4/15/2024, traded above 100. The most recent trade was at $54.72, which was a yield to maturity of 65.318%. DBD 5.75% Senior Unsecured Notes due 4/15/2024 DBD 5.75% 4/15/2024 (FINRA) Once it became apparent that DBD would probably not be able to redeem upcoming debt maturities from cash generated from operations or by issuing new securities, it commenced an offer to exchange some of its upcoming maturities for new securities with longer maturities. The offer required that at least 81.3% of the DBD 5.75% Senior Unsecured Notes due 4/15/2024 be tendered for the exchange to be consummated. After a number of extensions, they finally barely obtained enough securities tendered to consummate the transaction and issued a press release: HUDSON, Ohio, Dec. 27, 2022/PRNewswire/ -- On December 27, 2022, Diebold Nixdorf, Incorporated ("Parent") (DBD) announced that its previously announced private exchange offer and consent solicitation (the "Exchange Offer and Consent Solicitation") to certain Eligible Holders (as defined below) with respect to Parent's outstanding 8.50% Senior Notes due 2024 (144A CUSIP: 253651AA1; REG S CUSIP: U25316AA5; Registered CUSIP: 253651AC7) (the "2024 Senior Notes") expired as of 11:59 p.m., New York City time, on December 23, 2022 (the "Expiration Time"). According to the information received from D.F. King & Co., the Information and Exchange Agent for the Exchange Offer and Consent Solicitation, as of the Expiration Time, $327,888,000 in aggregate principal amount of the 2024 Senior Notes (representing 81.97% of the aggregate principal amount outstanding of the 2024 Senior Notes) had been validly tendered and not validly withdrawn. The "Settlement Date" with respect to the Exchange Offer and Consent Solicitation is expected to occur on December 29, 2022 (the "Settlement Date"), which is the third business day following the Expiration Time. On the Settlement Date, subject to the satisfaction or waiver of the conditions of the Exchange Offer and Consent Solicitation and upon acceptance by Parent of the 2024 Senior Notes, Eligible Holders who validly tendered 2024 Senior Notes that are accepted for exchange will be eligible to receive, for each $1,000 in principal amount of 2024 Senior Notes, $1,000 principal amount of units (the "Units") consisting of (1) $1,000 principal amount of new 8.50%/12.50% Senior Secured PIK Toggle Notes due 2026 to be issued by Parent (the "New Notes") and (2) a number of warrants (the "New Warrants" and, together with the Units and the New Notes, the "New Securities") to purchase common shares, par value $1.25 per share, of Parent ("Common Shares"), which will, in the aggregate, be exercisable for up to 19.99% of the Common Shares outstanding on the business day immediately preceding the Settlement Date (calculated on a non-diluted basis and prior to giving effect to any exercise of the New Warrants and the payment of the exercise price thereof via net share settlement, which applies to any exercise of the New Warrants), subject to adjustment. DBD also obtained consents required from the institutional holders of other securities to waive certain covenants to their indentures. As a result of the exchange, instead of having $400 million 8.50% Senior Notes due 2024, there will only be $72.11 outstanding. The most recent DBD 10-Q contains a Note 9: Debt which shows Outstanding debt balances as of 9/30/2020, which is reproduced below. I have added a column indicating that there will be $327,888,000 less debt due in 2024 and an equal amount more debt due in 2026. DBD Outstanding debt balances as of 9/30/2022, 9/30/2022 and After exchange Notes payable (maturities between September 30, 2022 and September 30, 2023) Uncommitted lines of credit $ 9.2 2023 Revolving Facility 300.9 2023 Term Loan B Facility - USD 4.8 2023 Term Loan B Facility - Euro 4.0 Other 0.2 $ 319.1 Short-term deferred financing fees -0.6 $ 318.5 Debt with maturities subsequent to September 30, 2023; classified as current for the period ended September 30, 2022 2023 Revolving Facility $ — 2023 Term Loan B Facility - USD 376.8 2023 Term Loan B Facility - Euro 319.8 2024 Senior Notes 400.0 72.11 2025 Senior Secured Notes - USD 700.0 2025 Senior Secured Notes - EUR 341.2 New 2026 PIK 327.89 Other 3.8 $ 2,141.6 Deferred financing fees -24.5 $ 2,117.1 Source DBD 10-Q Having $328 million less debt service to pay in 2024, clearly makes it more likely that DBD can put off bankruptcy, at least until after 2024. Thus, holders of the 8.50% Senior Notes due 2024 will receive a yield to maturity exceeding 60% from buying the notes at the current price, as long a DBD survives past 4/15/2024. DBD’s Prospects DBD is a leading producer and servicer of ATMs and similar equipment and software for banks, with installed base share of about 30%. The sector is relatively concentrated, with and its main competitors NCR Corporation (NCR) and Hyosung accounting for over 65% of the global installed base. ATM-related revenues account for the significant majority of Diebold's Banking segments, and most of its services and software revenues are related to the ATM installed base. Retail banking is not much of a growth industry, with many considering most of the developed world to be over-banked or close to it.
Seeking Alpha • Nov 07

Diebold Nixdorf Q3 2022 Earnings Preview

Diebold Nixdorf (NYSE:DBD) is scheduled to announce Q3 earnings results on Tuesday, November 8th, before market open. The consensus EPS Estimate is $0.24 (-29.4% Y/Y) and the consensus Revenue Estimate is $843.6M (-12.0% Y/Y). Over the last 2 years, DBD has beaten EPS estimates 50% of the time and has beaten revenue estimates 38% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 2 downward. Revenue estimates have seen 0 upward revisions and 3 downward.
Seeking Alpha • Oct 20

Diebold Nixdorf to refinance certain debt, updates financial guidance

Diebold Nixdorf (NYSE:DBD) rose on the news that it is looking to refinance certain debt with near-term maturities and of updated financial guidance. The refinancing, for which DBD has entered into an agreement with key financial stakeholders, will provide the company with $400M in new capital. The transaction support agreement was signed with the holders of over a majority of the company's term loans and certain notes. Additionally, the company has revised its FY22 guidance for revenue and adjusted EBITDA. The prior revenue guidance was in the range of $3.55B - $3.75B, and the current guidance is ~$3.50B (vs. consensus of $3.62B). For FY23, the company estimates revenue to be at ~$3.86B (vs. consensus of $3.73B) and FY24 revenue to be at ~$3.97B (vs. consensus of $3.85B). The prior adjusted EBITDA guidance was in the range of $320M - $350M, and the current guidance is ~$293M. For FY23, the guidance is ~$470M, and for FY24, the guidance is ~$540M. DBD shares were trading +14.93% pre-market. Source: Press Release
Seeking Alpha • Oct 09

Diebold Nixdorf: Cash Machine Maker Out Of Cash

Summary Diebold Nixdorf is the connected commerce services specialist. With segments such as banking and retail, the firm generates revenues through cash registers, scanners, and transaction hardware. Incorporated in 1876, this $3.7B firm has a wealth of corporate history. But big debt and big beta may see this venture join the dinosaurs. Overview Diebold Nixdorf (DBD) has likely withstood many a storm over its 146-year history. The banking and retail specialist has carved out a niche marketing payment hardware and transaction equipment across 2 segments. Banking provides bespoke solutions for financial institutions – with a product line boasting ATMs, money counters, cash dispensers, smart terminals, and ground-breaking kiosk technologies. The retail segment showcases modular, integrated point-of-sale and self-service terminals. As retailers continue outsourcing stages of the transaction process to the end customer, these more complex, integrated payment machines have become increasingly popular. Care-free, seamless, efficient transactional systems have been the company’s way of life accordingly. Tradingview Year-to-date price action – (DBD) The year has not been pretty for the payment terminals specialist formed from the 2016 merger of Diebold and Wincor Nixdorf. To date, the firm has shed -72.47% of its market cap since the pandemic-induced consumer durables boom slowly eased. Other problems have plagued the company, the biggest being a gargantuan mountain of debt ($2.42B) maturing just as interest rates spike. This would be immaterial if the firm did not have a market cap of $226M, faltering sales and net incomes heaped in red ink. A combination of dwindling consumer interest in consumer durables, coupled with paralyzing debt loads may see the company keel over. Wider supply chain woes and unfortunate FX headwinds have also taken their toll on the Ohio-based corporation. Koyfin Since the 2016 merger deal between Diebold & Wincor Nixdorf, the firm has been bleeding money. It was perhaps only the Fed induced post pandemic liquidity boom which provided it with a cash lifeline. Simplified Income Statement Sales growth has faltered, with the terminals enterprise posting only $3.9B sales in FY 2021, down from $4.4B 2 years earlier. In tandem, sales, general & administrative expense has lowered but research and development, which weighs about ~$120M per year, has not moderated simultaneously. Most of the damage inflicted on the income statement emanates from its Everest-like debt load. Net interest expense has spiraled, amounting to $190M in FY 2021. As yields move to the upside on the back of aggressive monetary tightening, corporate default and restructuring abound. In fact, the debt load has been so crippling that the firm has hired Evercore and Sullivan & Cromwell to devise some form of restructuring plan in last ditch attempts to save the enterprise from default. Right now, the company’s credit spread over US government bonds sits at an eye-watering 4175 basis points. Simplified Balance Sheet There are not many accolades that can be hurled at the balance sheet either. Cash and marketable securities, despite volatility, have declined. Inventory has increased from $466M in FY 2019 to $544M in FY 2021 as sales have tapered. Receivables have only marginally decreased, exposing the company to considerable cost and risk as it endeavors to convert economic output to cash. Circa $700M in goodwill, the excess paid above the net value of corporate assets minus liabilities looms like a stormy cloud on the horizon. Tested annually for impairment, any pending write-down would be catastrophic for the value of equity. Koyfin A sea of debt has plagued the company for the past 15 years, with problems accentuating as the SARS-Cov2 pandemic wreaked havoc on consumer spending. Only abundant liquidity pushed by the Federal Reserve has provided the firm any respite. Naturally, accounts payable has ticked up while the company looks to hoard cash any way possible. Long-term debt has been the real standout feature on the balance sheet, indicating pending financial doom, particularly as refinancing options freeze over. Key shareholders remain large institutions, with players such as Blackrock Fund Advisors (13.16%), The Vanguard Group (6.59%), and Beach Point Capital Management LP (5.02%) divvying out sizable stakes of company ownership. Consequently, big institutional investors look like they will bear the brunt of any cash crunch. Simplified Cash Flow Statement A glimpse at the cash flow statement provides little indication that the company will be able to overcome its liquidity woes. During the period of relatively abundant and cheap liquidity witnessed since the Great Financial Crisis, little action has been taken to address a looming credit bust. While net debt repaid has seen down payments made, they have been increasingly sporadic. Koyfin Since 2017, few inroads have been made into addressing the company’s debt pile
Seeking Alpha • Aug 12

Diebold Nixdorf slips as J.P. Morgan downgrades after 'low quality' Q2 report

Diebold Nixdorf (NYSE:DBD) shares fell nearly 5% in premarket trading on Friday as investment firm J.P. Morgan downgraded the financial technology company, noting its second-quarter results were "low quality." Analyst Paul Chung lowered his rating on Diebold (DBD) to underweight from neutral, noting that the company's management left its EBITDA and free cash flow guidance unchanged, despite the fact it lowered revenue guidance, citing "material" foreign exchange headwinds. "We see elevated risks to hitting guidance, in another heavily back end loaded year," Chung wrote in a note to clients. The analyst added that Diebold (DBD) is trading at a valuation to competitor NCR (NCR), despite lower operating profit margins, a more complex capital structure and "limited" free cash flow. Earlier this month, Diebold Nixdorf (DBD) rallied sharply despite the fact it lowered its revenue guidance for the full-year.
Seeking Alpha • Aug 01

Diebold Nixdorf Q2 2022 Earnings Preview

Diebold Nixdorf (NYSE:DBD) is scheduled to announce Q2 earnings results on Tuesday, August 2nd, before market open. EPS Estimate is -$0.13 (-230.0% Y/Y) and the consensus Revenue Estimate is $886.96M (-6.0% Y/Y). has beaten EPS estimates 50% of the time and has beaten revenue estimates 50% of the time. upward revisions and 2 downward. Revenue estimates have seen 0 upward revisions and 5 downward.
Analysis Article • Jul 20

Diebold Nixdorf (NYSE:DBD) Is Doing The Right Things To Multiply Its Share Price

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Seeking Alpha • Jul 08

Diebold Nixdorf gains after Wedbush upgrade on potential for sales against macro headwinds

Diebold Nixdorf (NYSE:DBD) rose 8% pre-market, Friday, after Wedbush upgraded the financial-retail technology firm to Outperform from Neutral on the increased likelihood of sales. The projection is based on company's strong product order flow and expected easing of supply constraints, which have posed the largest headwinds for DBD in the recent quarters. The price target remains at $5 by Wedbush analyst Matt Bryson, who wrote DBD is well-positioned to grow revenues through 2022 into 2023 even assuming a "difficult" macro trends alongside the company's cost initiatives set to bolster margins. However, analyst sees a "substantial risk" pertaining to DBD's debt issues where we are talking about the company with over $2B in debt. Bryson said "if DBD is able to navigate the next 9 month successfully, we see a path to double digit valuation again assuming it returns to the prior trajectory management." The research firm is of the view all the downside risk is fully reflected in the DBD current stock price, trading close to its 52-week low of $2 vs. a 52-week high of nearly $14.  While average Wall Street's rating give a Buy to DBD, Seeking Alpha Quant Rating System flag a Sell with warning issued on June 29, 2022: DBD is at high risk of performing badly
Seeking Alpha • Jun 17

Diebold Nixdorf: Growth Drivers Are Alive, But Risk Factors Get Stronger

Diebold Nixdorf looks to concentrate on streamlining its operations and digitizing processes to reduce redundancies and mitigate the supply chain-related challenges. The supply chain issue has caused DBD to lower revenue and EBITDA estimates for FY2022. In the current environment, negative cash flows and negative shareholders' equity pose concerns. Avoid the stock in the short term.
Seeking Alpha • Apr 04

Diebold Nixdorf: Believing In The EV Charging Business

Diebold Nixdorf focuses on both the high-growth electric vehicle charging stations market in the US and Europe and DN Series ATMs to improve its top line. Supply chain challenges and increased investment in infrastructure may limit its operating margin expansion in the near term. Negative shareholders' equity poses concern, but free cash flow growth reduces the risk factors. The stock is undervalued versus its peers at this level.
Analysis Article • Jan 04

We Like These Underlying Return On Capital Trends At Diebold Nixdorf (NYSE:DBD)

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...
Seeking Alpha • Jan 03

Diebold Nixdorf: Steering Effectively Through The Financial Troubles

Self-checkout products and the DN Series ATMs constitute DBD's most influential drivers in the post-pandemic scenario. It plans to tap into the electric vehicle charging stations market in its diversification initiative. Supply chain challenges can put pressure on the operating margin in the near term. The stock is relatively undervalued; however, negative shareholders' equity and negative cash flows pose financial risks.

CEO Compensation Analysis

How has Octavio Marquez's remuneration changed compared to Diebold Nixdorf's earnings?
DateTotal CompensationSalaryCompany Earnings
Jun 30 2023n/an/a

-US$987m

Mar 31 2023n/an/a

-US$509m

Dec 31 2022US$6mUS$780k

-US$581m

Compensation vs Market: Octavio's total compensation ($USD5.66M) is above average for companies of similar size in the US market ($USD740.57K).

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

CEO

Octavio Marquez (55 yo)

1.4yrs
Tenure
US$5,660,334
Compensation

Mr. Octavio Marquez serves as President and Chief Executive Officer of Diebold Nixdorf, Incorporated since March 11, 2022 and also serves as its Director since 2022 and also serves as its Chairman of the B...

Leadership Team

NamePositionTenureCompensationOwnership
Octavio Marquez
President1.4yrsUS$5.66m0.42%
$ 7.9k
Olaf Heyden
Executive VP & COO2.8yrsUS$2.60m0.29%
$ 5.3k
Jonathan Leiken
Executive VP9.3yrsUS$1.92m0.19%
$ 3.6k
David Caldwell
Executive Vice President of Corporate Development5.3yrsUS$1.98m0.067%
$ 1.3k
James Barna
CFO & Executive VPless than a yearno data0.024%
$ 454.0
Teresa Ostapower
Senior VP & Chief Information Officer2yrsno datano data
Susan Malcolm
VP and Chief Ethics & Compliance Officerless than a yearno datano data
Michael Jacobsen
Senior Director of Corporate Communicationsno datano datano data
Devon Watson
Chief Marketing Officer5.8yrsno datano data
Elizabeth Radigan
Executive VP & Chief People Officer1.6yrsno data0.037%
$ 685.9
Kevin Ku
Managing Director of Supply Chain - Asia Pacificno datano datano data
Jaivinder Gill
MD of South Asia & VP of Operations for Asia Pacific8.3yrsno datano data
2.4yrs
Average Tenure
53yo
Average Age

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

Board Members

NamePositionTenureCompensationOwnership
Octavio Marquez
President1.6yrsUS$5.66m0.42%
$ 7.9k
Emanuel Pearlman
Independent Directorless than a yearno datano data
Arthur Anton
Lead Independent Director4.3yrsUS$224.67k0.30%
$ 5.6k
Matthew Goldfarb
Independent Director4.3yrsUS$214.67k0.11%
$ 2.0k
Marjorie Bowen
Independent Directorless than a yearno datano data
Kent Stahl
Independent Director4.3yrsUS$212.17k0.045%
$ 842.1
William Borden
Independent Director1.8yrsUS$217.17k0.0067%
$ 124.0
1.8yrs
Average Tenure
60yo
Average Age

Experienced Board: DBDQ.Q's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/08/13 05:46
End of Day Share Price 2023/08/10 00:00
Earnings2023/06/30
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Diebold Nixdorf, Incorporated is covered by 11 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Reik ReadBaird
Justin AgesCJS Securities, Inc.