NCR

NCR Corp

TMT, Finance/Real Estate


Presented:06/05/2020
Price:$21.10
Cap:$2.70B
Current Price:$13.23
Cap:$1.92B

Presented

Date06/05/2020
Price$21.10
Market Cap$2.70B
Ent Value$6.35B
P/E Ratio6.71x
Book Value$8.04
Div Yield0%
Shares O/S127.80M
Ave Daily Vol1,601,077
Short Int5.43%

Current

Price$13.23
Market Cap$1.92B
NCR Corp. engages in the development, manufacture and sale of consumer transaction solutions. It operates through the following segments: Banking, Retail, Hospitality, and Other. The Banking segment offers solutions for the financial services industries. The Retail segment focuses on the customers for the retail industries. The Hospitality segment involves in the hospitality industries such as restaurant, global chains, and sports and entertainment venues. The Other segment includes the solutions for the telecommunications and technology industries. The company was founded by John Henry Patterson in 1884 and is headquartered in Atlanta, GA.

Publicly traded companies mentioned herein: Blackstone Group (BX), Fidelity National Information Services Inc (FIS), NCR Corp (NCR), Q2 Holdings Inc (QTWO)

Highlights

The presenter likes the NCR Corp (NCR) management team and sees the potential for patient shareholders to realize meaningful gains over the next 2 - 3 years. NCR is viewed as a hardware play due to its ATM and related on-site businesses; however, there’s an underappreciated software angle, tailwinds for digital banking and the services business, and optionality around NCR’s transaction processing and payment solution(s), according to the presenter. With the stock at ~$21 per share (up from the low-teens during the COVID-19 market selloff) and a beat-and-raise setup, the entry point for a long position appears to be attractive. If NCR can generate $4+/share of FCF as the presenter expects in 2024, applying a 15x multiple yields a $60 long-term target.

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Idea Discussion

Commentor 1 - 2 weeks ago

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