Teradata Corporation
Find Ratings ReportsTERADATA CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. While sales increased, net income has remained unchanged. TERADATA CORP has weak liquidity. Currently, the Quick Ratio is 0.80 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 47.67% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 457.0 | 452.0 |
EBITDA ($mil) | 90.0 | 59.0 |
EBIT ($mil) | 60.0 | 26.0 |
Net Income ($mil) | -7.0 | -7.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 486.0 | 569.0 |
Total Assets ($mil) | 1873.0 | 2022.0 |
Total Debt ($mil) | 640.0 | 637.0 |
Equity ($mil) | 135.0 | 258.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 67.4 | 65.93 |
EBITDA Margin | 19.69 | 13.05 |
Operating Margin | 13.13 | 5.75 |
Sales Turnover | 0.98 | 0.89 |
Return on Assets | 3.31 | 1.63 |
Return on Equity | 45.93 | 12.79 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.87 | 1.02 |
Debt/Capital | 0.83 | 0.71 |
Interest Expense | 8.0 | 7.0 |
Interest Coverage | 7.5 | 3.71 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 97.9 | 101.1 |
Div / share | 0.0 | 0.0 |
EPS | -0.07 | -0.07 |
Book value / share | 1.38 | 2.55 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1083946.0 | 866275.0 |
HOLD. This stock's P/E ratio indicates a premium compared to an average of 61.20 for the Comp Infrastructure, Data, Web Hosting, Related Se subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 27.38 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 9.55. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, TERADATA CORP proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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TDC 61.89 | Peers 61.20 | TDC 9.86 | Peers 28.25 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. TDC is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TDC is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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TDC 13.71 | Peers 18.10 | TDC 0.24 | Peers 0.46 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. TDC is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. TDC trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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TDC 27.38 | Peers 9.55 | TDC 103.33 | Peers 211.27 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TDC is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, TDC is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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TDC 2.02 | Peers 6.93 | TDC 2.11 | Peers 11.39 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TDC is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. TDC significantly trails its peers on the basis of sales growth. |
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