Teradata Story

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TDC -- USA Stock  

USD 41.02  1.11  2.63%

While some of us are excited about technology space, it makes sense to go over Teradata in greater detail to make a better assessment of its actual value. We will evaluate if Teradata shares are reasonably priced going into March. Is the entity valuation sustainable? Here I will cover a perspective on valuation of Teradata to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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Will Teradata (NYSE:TDC) price increase in March 2021?
This firm has 683 M in debt with debt to equity (D/E) ratio of 1.78, which is OK given its current industry classification. Our trade recommendation module complements current analysts and expert consensus on Teradata. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time.
We determine the current worth of Teradata Corp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Teradata Corp based exclusively on its fundamental and basic technical indicators. By analyzing Teradata Corp's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Teradata Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Teradata Corp. We calculate exposure to Teradata Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Teradata Corp's related companies.

Teradata Corp Investment Alerts

Teradata investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Teradata Corp performance across your portfolios.Please check all investment alerts for Teradata

Teradata Corp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Teradata value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Teradata Corp competition to find correlations between indicators driving the intrinsic value of Teradata.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Teradata Corp, but it might be worth checking our own buy vs. sell analysis

Sale by Treese Margaret A of 15 shares of Teradata Corp

Legal trades by Teradata Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Teradata insider trading alert for sale of common stock by Treese Margaret A, Chief Legal Officer, on 1st of March 2021. This event was filed by Teradata Corp with SEC on 2021-03-01. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Teradata Corp valued fairly by the market?

The company reported the last year's revenue of 1.84 B. Total Income to common stockholders was 105 M with profit before taxes, overhead, and interest of 966 M.
 2016 2020 2021 (projected)
Interest Expense12 M10.8 M10.11 M
Gross Profit1.19 B1.07 B1.04 B

Margins Breakdown

Teradata profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Teradata itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Teradata profit margins.
Operating Margin0.63
EBITDA Margin6.53
Gross Margin59.39
Profit Margin(1.24)

Teradata Net Income Per Employee is somewhat stable at the moment. Also, Teradata Revenue Per Employee is decreasing over the last 8 years. The previous year's value of Teradata Revenue Per Employee was 272,212.

Our take on Teradata to rebound

Current value at risk is at -2.1. Teradata currently demonstrates below-verage downside deviation. It has Information Ratio of 0.2 and Jensen Alpha of 1.09. However, we do advice investors to further question Teradata expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Teradata

Whereas other companies in the information technology services industry are either recovering or due for a correction, Teradata may not be as strong as the others in terms of longer-term growth potentials. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in Teradata. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Teradata.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Teradata Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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