NCR Voyix Corp (NYSE: VYX)

Sector: Technology Industry: Information Technology Services CIK: 0000070866
Market Cap 1.43 Bn
P/B 1.69
P/E -23.45
P/S 0.54
ROIC (Qtr) 0.38
Div Yield % 0.00
Rev 1y % (Qtr) -3.39
Total Debt (Qtr) 1.33 Bn
Debt/Equity (Qtr) 1.57

About

NCR Voyix Corp, known by its ticker symbol VYX, is a prominent player in the digital commerce industry, serving retail stores, restaurants, and financial institutions. Founded in 1884 and headquartered in Atlanta, Georgia, NCR Voyix Corp provides software and services-led enterprise technology solutions for retail and restaurants, and cloud-based digital solutions for financial institutions. The company operates across various segments, each catering to specific markets. The Retail segment, designed to serve retailers of all sizes, offers a range...

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Price action

Investment thesis

Bull case

  • Tangible assets of 2.39B provide exceptional 11.56x coverage of deferred revenue 207M, showing strong service capability backing.
  • Robust tangible asset base of 2.39B provides 15.95x coverage of working capital 150M, indicating strong operational backing.
  • R&D investment of 140M represents healthy 0.68x of deferred revenue 207M, indicating strong future innovation pipeline.
  • Cash reserves of 288M provide solid 1.26x coverage of other non-current liabilities 228M, indicating strong liquidity.
  • Cash reserves of 288M provide ample 72x coverage of acquisition spending 4M, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of (440M) barely covers its investment activities of 62M, with a coverage ratio of -7.10, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 62M provide weak support for R&D spending of 140M, which is 0.44x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (440M) provides insufficient coverage of deferred revenue obligations of 207M, which is -2.13x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (440M) shows concerning coverage of stock compensation expenses of 34M, with a -12.94 ratio indicating potential earnings quality issues.
  • High receivables of 548M relative to inventory of 221M (2.48 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 279.99 Bn 35.41 4.28 66.57 Bn
2 ACN Accenture plc 168.17 Bn 22.09 2.38 8.20 Bn
3 INFY Infosys Ltd 74.96 Bn 23.74 3.89 -
4 CTSH Cognizant Technology Solutions Corp 41.45 Bn 19.48 1.99 1.17 Bn
5 FIS Fidelity National Information Services, Inc. 35.21 Bn 231.62 3.36 13.00 Bn
6 WIT Wipro Ltd 29.93 Bn 19.70 2.97 1.95 Bn
7 BR Broadridge Financial Solutions, Inc. 26.38 Bn 28.51 3.74 3.28 Bn
8 LDOS Leidos Holdings, Inc. 23.72 Bn 16.88 1.37 5.23 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.61 1.44
EV to Cash from Ops. EV/CFO -5.58 5.63
EV to Debt EV to Debt 1.84 8.06
EV to EBIT EV/EBIT -490.95 -4.05
EV to EBITDA EV/EBITDA 10.06 -0.52
EV to Free Cash Flow [EV/FCF] EV/FCF -4.10 -1.66
EV to Market Cap EV to Market Cap 1.72 1.35
EV to Revenue EV/Rev 0.93 57.14
Price to Book Value [P/B] P/B 1.69 3.34
Price to Earnings [P/E] P/E -23.45 -5.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -4.36 -0.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.66
Dividend per Basic Share Div per Share (Qtr) 0.00 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.24
Interest Coverage Int. cover (Qtr) -0.09 -319.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 36.55 -253.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -64.92 114.15
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 35.23
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -100.46 -22.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 79.41 -25.03
EBIT Growth (1y) % EBIT 1y % (Qtr) -100.63 -82.44
EBT Growth (1y) % EBT 1y % (Qtr) -109.86 97.07
EPS Growth (1y) % EPS 1y % (Qtr) -110.28 147.29
FCF Growth (1y) % FCF 1y % (Qtr) -145.08 -8,638.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.25 -8.24
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.66 0.78
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.26 0.66
Current Ratio Curr Ratio (Qtr) 1.14 2.12
Debt to Equity Ratio Debt/Equity (Qtr) 1.57 0.88
Interest Cover Ratio Int Coverage (Qtr) -0.09 -319.17
Times Interest Earned Times Interest Earned (Qtr) -0.09 -319.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.60 -550.76
EBIT Margin % EBIT Margin % (Qtr) -0.19 -775.74
EBT Margin % EBT Margin % (Qtr) -2.38 -827.89
Gross Margin % Gross Margin % (Qtr) 22.80 24.07
Net Profit Margin % Net Margin % (Qtr) -2.30 -830.34