TDCTeradata Corporation
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (7.7×), and elite returns on assets.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 66% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TDC?
Teradata Corporation earns 56% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 47 points above what the capital costs: growth creates value
- Operating margin
- 7.5%
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2026
- Cash conversion
- 7.73×
Cash conversion · 2.06× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.21%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 0.87% |
| FY2021 | 12% |
| FY2022 | 6.6% |
| FY2023 | 10% |
| FY2024 | 12% |
| FY2025 | 12% |
Details›
- Gross margin12 months to Q2 2026
- 61%
- Operating margin12 months to Q2 2026
- 7.5%
- Net margin12 months to Q2 2026
- 27%
- Free cash flow margin
- 44%
- R&D as % of revenue
- 17%
- Revenue, trailing twelve months
- $1.69B
- Free cash flow, trailing twelve months
- $736M
- Net income, trailing twelve months
- $458M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 56%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #9 of 80 by RyuScore