NCR - Embedded Expectations Analysis - 2020 08 07
NCR Corporation (NCR:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 13.9x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about their liquidity position, logistics disruptions, and ATM business pressuresSpecifically, management may have concerns about their current liquidity position, further disruptions in their logistics, and the terms of their debt refinancing. Furthermore, they may lack confidence in their ability to remain compliant with their debt covenants, continue to have employees in the field, and help their restaurant customers manage through the crisis. Also, they may have concerns about needing to reduce costs further if the coronavirus prolongs and the potential of their products built through capex and M&A. In addition, they may lack confidence in their ability to grow ATM hardware revenue and margins due to bank closures and maintain their ATM break/fix service
NCR is a software- and services-led enterprise provider in the financial, retail, hospitality and telecommunications and technology industries. The company is an enterprise provider selling a portfolio of digital first software, services, hardware and payments. The company's segments include: Banking, which includes automated teller machines and payment processing hardware and software; Retail, which provides solutions that primarily include retail-oriented technologies, such as point of sale (POS) terminals and POS software; Hospitality, which provides solutions that include POS hardware and software solutions; and Other, which includes telecommunications and technology solutions.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
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