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Teradata Corporation

TDC
66
Software - Infrastructure · Technology
Also trades as: 0LEE.L
Price
$27.69
+0.12 (+0.44%)
Market Cap
$2.61B
Winston Score
66
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Strong
Cash Flow
Exceptional
Stability
Mixed
Valuation
Good

Share count falling — buybacks

14.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 112.9M (2021) → 96.6M (2025)

Winston Score History

The full picture

Teradata makes software that helps large companies store, organize, and analyze huge amounts of data. Its main product is a data analytics platform called Vantage, which lets businesses run complex queries across massive datasets to make better decisions. Teradata's customers are mostly large enterprises in industries like banking, retail, healthcare, and telecommunications.

The company earns most of its revenue through cloud subscriptions and on-premise software licenses, with a recurring revenue model that provides some stability. Teradata operates globally, with significant business in the Americas, Europe, and Asia-Pacific, and its competitive position rests on deep relationships with large enterprise customers who rely on its platform for critical operations. The key challenge Teradata faces is competition from cloud-native data platforms like Snowflake and Databricks, which have grown quickly and are winning new customers, putting pressure on Teradata to accelerate its own cloud transition to stay relevant.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+0.5% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+444.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$280M/ year

Flat (-1% vs prior year)

16.8% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

8.5%ownership

Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$414M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Teradata Corporation is growing revenue at 0% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
59.3%
Premium pricing power — 59.3% gross margin
Profit after running costs
Operating Margin
11.7%
Modest — 11.7% operating margin
Return on the money invested
ROCE
21.8%
Exceptional — 21.8% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+1.0%
Nearly flat sales (+1.0% YoY)
Profit growth
EPS YoY
+330.7%
Earnings growing fast (+330.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
166%
Turns 166% of profit into real cash
Spare cash per sale
FCF Margin
43.5%
Converts sales into free cash efficiently (43.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
6.79x
Adequate interest coverage (6.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
5.6x
Attractive valuation — P/E 5.6

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-4.2
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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