NEW YORK ( TheStreet) -- Teradata Corporation (NYSE: TDC) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- TDC's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TDC has a quick ratio of 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.
- TERADATA CORP's earnings per share declined by 34.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TERADATA CORP increased its bottom line by earning $2.44 versus $2.06 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.44).
- Net operating cash flow has increased to $243.00 million or 26.56% when compared to the same quarter last year. Despite an increase in cash flow, TERADATA CORP's cash flow growth rate is still lower than the industry average growth rate of 73.31%.
- TDC, with its decline in revenue, underperformed when compared the industry average of 11.3%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
--Written by a member of TheStreet Ratings Staff.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.