NCR Corporation (NCR)

NCR Corporation (NCR) Technology Profile & Competitive Position

NCR Corporation delivers software and services across banking, retail, and hospitality sectors, offering solutions like ATM management, POS systems, and digital banking platforms. With a history dating back to 1881, NCR focuses on providing technology solutions to enhance customer experiences and operational efficiency.

What Is the Investment Thesis for NCR?

NCR Corporation presents a mixed investment thesis. The company's established presence in the banking and retail sectors, coupled with its transition towards software and services, offers potential for recurring revenue streams. However, with a P/E ratio of 15.46 and a profit margin of 2.3%, investors should closely monitor NCR's ability to improve profitability and execute its strategic initiatives. Key catalysts include expanding its ATM-as-a-Service offerings and growing its cloud-based hospitality solutions. Potential risks include competition from other technology providers and the cyclical nature of hardware sales.

Based on FMP financials and quantitative analysis

NCR Key Highlights

• NCR operates in four segments: Banking, Retail, Hospitality, and Telecommunications and Technology.
• NCR's solutions include ATM management, point-of-sale systems, and digital banking platforms.
• The company's P/E ratio is 15.46.
• NCR's profit margin is 2.3%.
• NCR's gross margin is 23.7%.

Who Are NCR's Competitors?

NCR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NCR's Key Strengths?

• Comprehensive suite of solutions for banking, retail, and hospitality sectors.
• Established customer base and long-standing relationships.
• Expertise in ATM management and digital banking.
• Transition towards recurring revenue streams through software and services.

What Are NCR's Weaknesses?

• Relatively low profit margin compared to industry peers.
• Dependence on hardware sales, which can be cyclical.
• High beta of 1.68, indicating higher volatility compared to the market.
• Lack of dividend yield, which may deter some investors.

What Could Drive NCR Stock Higher?

• Expansion of ATM-as-a-Service offering to new markets.
• Growth in cloud-based hospitality solutions and digital banking platforms.
• Strategic partnerships to expand market reach and product offerings.
• Launch of new software and hardware solutions for retail and hospitality sectors.

What Are the Key Risks for NCR?

• Financial-distress signal — its Altman Z-Score of 1.80 sits in the distress zone (elevated bankruptcy risk).
• Competition from other technology providers.
• Economic downturns and reduced capital spending by customers.
• Cybersecurity threats and data breaches.
• Rapid technological advancements and evolving customer expectations.
• Integration challenges with acquisitions and strategic partnerships.

What Are the Growth Opportunities for NCR?

• Growth opportunity 1: Expansion of ATM-as-a-Service: NCR can capitalize on the increasing demand for outsourced ATM management solutions by expanding its ATM-as-a-Service offering. This includes providing end-to-end ATM channel management for banks, allowing them to focus on their core business. The global ATM market is expected to reach $25 billion by 2028, presenting a significant opportunity for NCR to grow its market share through innovative service models and strategic partnerships. Timeline: Ongoing.
• Growth opportunity 2: Cloud-based Hospitality Solutions: NCR can further penetrate the hospitality market by offering cloud-based software applications for point-of-sale, back office, payment processing, and restaurant management. The shift towards cloud-based solutions in the hospitality industry is driven by the need for greater flexibility, scalability, and cost-effectiveness. The global cloud kitchen market is projected to reach $71.4 billion by 2027, providing a substantial growth opportunity for NCR. Timeline: Ongoing.
• Growth opportunity 3: Digital Banking Solutions: NCR can leverage its expertise in digital banking to provide solutions for financial institutions' consumer and business customers. This includes offering solutions for banking channel services, transaction processing, imaging, and branch services. The increasing adoption of digital banking channels presents a significant growth opportunity for NCR. The digital banking market is expected to reach $12.3 billion by 2028. Timeline: Ongoing.
• Growth opportunity 4: Retail Self-Service Kiosks: NCR can expand its presence in the retail industry by offering self-service kiosks, including self-checkout (SCO) solutions. The increasing demand for self-service options in retail is driven by the need to improve customer experience and reduce labor costs. The global self-service kiosk market is projected to reach $30.8 billion by 2027, providing a substantial growth opportunity for NCR. Timeline: Ongoing.
• Growth opportunity 5: Payment Processing Solutions: NCR can enhance its offerings by providing comprehensive payment processing solutions for the retail and hospitality industries. This includes offering solutions for payment acceptance, fraud prevention, and data security. The increasing adoption of digital payments presents a significant growth opportunity for NCR. The global digital payments market is expected to reach $8.42 trillion by 2028. Timeline: Ongoing.

What Opportunities Does NCR Have?

• Expansion of ATM-as-a-Service offering.
• Growth in cloud-based hospitality solutions.
• Increasing adoption of digital banking channels.
• Penetration of emerging markets with technology solutions.

What Threats Does NCR Face?

• Competition from other technology providers.
• Rapid technological advancements and evolving customer expectations.
• Economic downturns and reduced capital spending by customers.
• Cybersecurity threats and data breaches.

What Are NCR's Competitive Advantages?

• Established customer relationships with banks, retailers, and restaurants.
• Comprehensive suite of solutions spanning software, hardware, and services.
• Expertise in ATM management and digital banking.
• Scalable cloud-based software platform.

What Does NCR Do?

Founded in 1881, NCR Corporation has evolved from a cash register company to a global provider of software and services for the banking, retail, hospitality, and telecommunications industries. Headquartered in Atlanta, Georgia, NCR operates through four segments: Banking, Retail, Hospitality, and Telecommunications and Technology. The company's Banking segment offers managed services, ATM-as-a-Service, and digital banking solutions. The Retail segment provides comprehensive API-point of sale (POS) retail software platforms and applications, hardware terminals and peripherals, payment processing solutions, and consumer engagement solutions, as well as self-service kiosks. NCR's Hospitality segment offers technology solutions to various restaurant types, including cloud-based software applications for point-of-sale, back office, payment processing, and restaurant management. The Telecommunications and Technology segment provides managed network and infrastructure services to enterprise clients. NCR's solutions facilitate customer account opening and onboarding across digital, branch, and call center channels, aiming to improve operational efficiency and customer experience.

What Products and Services Does NCR Offer?

• Provides managed services and ATM-as-a-Service for banks.
• Offers digital banking solutions for financial institutions.
• Provides comprehensive API-point of sale (POS) retail software platforms and applications.
• Offers hardware terminals and peripherals for retail.
• Provides payment processing solutions.
• Offers self-service kiosks, which consists of self-checkout (SCO).
• Provides technology solutions to customers in the hospitality industry.
• Offers cloud-based software applications for point-of-sale, back office, payment processing, kitchen production, restaurant management, eCommerce, and consumer marketing and loyalty.

How Does NCR Make Money?

• Software and services revenue from banking, retail, and hospitality sectors.
• Hardware sales, including ATM terminals and POS systems.
• Recurring revenue from managed services and subscription-based software offerings.
• Payment processing fees.

What Industry Does NCR Operate In?

NCR Corporation operates in the competitive information technology services industry. The industry is characterized by rapid technological advancements, evolving customer expectations, and increasing demand for digital solutions. NCR competes with companies offering similar software, hardware, and services to the banking, retail, and hospitality sectors. The company's success depends on its ability to innovate, adapt to changing market dynamics, and provide differentiated solutions that meet the needs of its customers. The global IT services market is projected to reach billions in the coming years, driven by digital transformation initiatives across industries.

Who Are NCR's Key Customers?

• Banks and financial institutions
• Retailers, including grocery stores and convenience stores
• Restaurants, including table-service, quick-service, and fast casual restaurants
• Enterprise clients requiring managed network and infrastructure services

Net buyingInsider Activity

The most recent 10 insider filings for NCR Corporation break down as 5 sales and 5 purchases. On net that is roughly 63K shares acquired (about $939K) — insiders putting money in tends to read as conviction.

ROE 6%Key Financial Metrics

Return on equity for NCR Corporation stands at 6.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.9%, showing how much profit it generates from its asset base. NCR trades at a trailing price-to-earnings ratio of 16.12, below the Technology sector average of ~38x. Its free cash flow yield is -31.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.06 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.2%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 5/9Financial Health

NCR Corporation's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.80 places it in the distress zone, a signal of elevated financial risk.

NCR Valuation & Market Position

With a $3.82B market cap, NCR Corporation sits in the mid-cap segment of the market. Relative to its peer group, NCR's quantitative score of 44/100 is roughly in line with the peer average of 53/100.

NCR Financials

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NCR Analyst Consensus

NCR MoonshotScore

What Investors Ask About NCR Corporation (NCR) — Technology

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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