Teradata Corporation
Teradata Corporation Fundamental Analysis
Teradata Corporation (TDC) shows moderate financial fundamentals with a PE ratio of 22.01, profit margin of 7.82%, and ROE of 66.41%. The company generates $1.7B in annual revenue with weak year-over-year growth of -4.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TDC's fundamental strength across five key dimensions:
Efficiency Score
WeakTDC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTDC trades at attractive valuation levels.
Growth Score
ModerateTDC shows steady but slowing expansion.
Financial Health Score
WeakTDC carries high financial risk with limited liquidity.
Profitability Score
ModerateTDC maintains healthy but balanced margins.
Key Financial Metrics
Is TDC Expensive or Cheap?
P/E Ratio
TDC trades at 22.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TDC's PEG of 1.93 indicates fair valuation.
Price to Book
The market values Teradata Corporation at 12.44 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.79 times EBITDA. This is generally considered low.
How Well Does TDC Make Money?
Net Profit Margin
For every $100 in sales, Teradata Corporation keeps $7.82 as profit after all expenses.
Operating Margin
Core operations generate 12.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $66.41 in profit for every $100 of shareholder equity.
ROA
Teradata Corporation generates $7.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Teradata Corporation produces operating cash flow of $309.92M, showing steady but balanced cash generation.
Free Cash Flow
Teradata Corporation generates strong free cash flow of $300.77M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.18 in free cash annually.
FCF Yield
TDC converts 10.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.009
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.66
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How TDC Stacks Against Its Sector Peers
| Metric | TDC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.01 | 35.19 | Better (Cheaper) |
| ROE | 66.41% | 1155.00% | Weak |
| Net Margin | 7.82% | -127067.00% (disorted) | Weak |
| Debt/Equity | 2.44 | 0.41 | Weak (High Leverage) |
| Current Ratio | 0.92 | 4.71 | Weak Liquidity |
| ROA | 7.31% | -314918.00% (disorted) | Weak |
TDC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Teradata Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.17%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
662.71%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
142.53%
Industry Style: Growth, Innovation, High Beta
High Growth