Teradata Corp. (TDC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Duolingo, Inc.

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Smartsheet, Inc.

Qualys, Inc.

Tenable Holdings, Inc.

SPS Commerce, Inc.

Teradata Corp.

Dolby Laboratories, Inc.

DoubleVerify Holdings, Inc.

New Relic, Inc.

Why is Teradata Corp. ?

High Management Efficiency with a high ROCE of 55.22%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.35 times

Healthy long term growth as Operating profit has grown by an annual rate 66.34%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 284 MM
INTEREST COVERAGE RATIO(Q) Lowest at 833.33
RAW MATERIAL COST(Y) Grown by 6.5% (YoY)

With ROCE of 70.00%, it has a attractive valuation with a 7.00 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.39%, its profits have risen by 155.3% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.39% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Teradata Corp. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Teradata Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Teradata Corp.

-6.53%

-0.15

52.06%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.90%

EBIT Growth (5y)

66.34%

EBIT to Interest (avg)

6.43

Debt to EBITDA (avg)

0.35

Net Debt to Equity (avg)

1.09

Sales to Capital Employed (avg)

2.55

Tax Ratio

27.37%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

55.22%

ROE (avg)

55.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

13.54

EV to EBIT

10.01

EV to EBITDA

7.13

EV to Capital Employed

7.00

EV to Sales

1.36

PEG Ratio

0.09

Dividend Yield

ROCE (Latest)

70.00%

ROE (Latest)

91.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

ROCE(HY)

Highest at 87.65%

NET PROFIT(9M)

Higher at USD 85.08 MM

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 284 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 833.33

RAW MATERIAL COST(Y)

Grown by 6.5% (YoY

NET SALES(Q)

Lowest at USD 408 MM

OPERATING PROFIT(Q)

Lowest at USD 50 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.25 %

PRE-TAX PROFIT(Q)

Lowest at USD 16 MM

NET PROFIT(Q)

Lowest at USD 11.08 MM

EPS(Q)

Lowest at USD 0.09

Here's what is not working for Teradata Corp.

Pre-Tax Profit

At USD 16 MM has Fallen at -67.68%

over average net sales of the previous four periods of USD 49.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 11.08 MM has Fallen at -69.31%

over average net sales of the previous four periods of USD 36.09 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 284 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 833.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at USD 408 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 50 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 12.25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 16 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 11.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 6.5% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales