Teradata Faces Demand and Margin Concerns in StockStory Assessment
StockStory cited slower billings growth and weakening margin measures, while noting Teradata trades at 1.8 times forward sales.
Key takeaways
- Teradata reported $367 million in Q2 billings, with average growth of 3.4% over four quarters.
- Analysts expect Teradata's free cash flow margin to fall to 18.7% over the next year.
StockStory said Teradata’s fundamentals pose too much downside risk, despite a valuation it described as reasonable. The company trades at 1.8 times forward sales, or $30.59 per share, according to the article.
Teradata reported $367 million in Q2 billings. Year-over-year billings growth averaged 3.4% over the last four quarters, which StockStory said pointed to challenges in acquiring and retaining customers.
The publisher also noted that Teradata’s operating margin fell 3.5 percentage points over two years and stood at 7.5% for the trailing 12 months. Analysts’ consensus estimates project its free cash flow margin will decline from 43.4% over the last 12 months to 18.7% over the next year.
This article was produced with the help of AI technology. Source: Yahoo Finance
