Diebold Nixdorf Inc (DBD) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: N/A
• Average Volume (3M): 202.07K
• Price to Earnings (P/E): 49.8
• Beta (1Y): 1.21
• Revenue Growth: -2.86%
• EPS Growth: 985.78%
• Country: US
• Employees: 21,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.39
• Shares Outstanding: 35,867,157
• 10 Day Avg. Volume: 262,024
• 30 Day Avg. Volume: 202,068
• PEG Ratio: 0.96
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 12.28
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $80.00
• Price Target Upside: 17.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $66.00 ▼(-2.94% Downside)

Diebold Nixdorf's overall stock score is driven by a positive earnings call and technical indicators, which are offset by weak financial performance and valuation metrics. The company's strategic initiatives and optimistic guidance provide some confidence, but financial challenges remain significant.

Positive Factors

Revenue Growth

The company's ability to achieve revenue growth indicates resilience and effective market strategies, supporting long-term business sustainability.

Positive Free Cash Flow

Consistent positive free cash flow enhances financial flexibility, enabling strategic investments and debt reduction, crucial for long-term stability.

Credit Rating Upgrade

An improved credit rating reflects enhanced financial health, reducing borrowing costs and increasing investor confidence in the company's future.

Negative Factors

High Debt Levels

Significant debt levels can constrain financial flexibility and increase risk, potentially impacting long-term operational and strategic initiatives.

Service Margin Challenges

Declining service margins indicate cost pressures and operational inefficiencies, which could affect profitability and require strategic adjustments.

Declining Revenue Trend

A persistent decline in revenue suggests challenges in market competitiveness and product demand, necessitating strategic interventions for growth.

Diebold Nixdorf Inc Business Overview & Revenue Model

Company Description

Diebold Nixdorf, Incorporated engages in the automating, digitizing, and transforming the way people bank and shop worldwide. It operates through two segments, Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, and kiosk technologies, as well as physical security solutions; and front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration, and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management, and analytics. It also provides banking product-related services comprising proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit; first- and second-line maintenance, preventive maintenance, and on-demand services; managed and outsourcing services, such as business processes, solution management, upgrades, and transaction processing; and cash management services. In addition, the company offers DN Vynamic software suite to simplify and enhance the consumer experience; mobile point of sale and self-checkout terminals; printers, scales, and mobile scanners; and banknote and coin processing systems. Additionally, it provides retail customer's product-related services, such as on-demand and professional services; maintenance and availability services; implementation services; managed mobility services; monitoring and advanced analytics; and store life-cycle management services. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is headquartered in Hudson, Ohio.

How the Company Makes Money

Diebold Nixdorf generates revenue through several key streams, primarily from the sale of automated teller machines (ATMs) and point-of-sale (POS) systems, alongside associated software solutions. The company also earns significant income from ongoing service contracts, which include maintenance, software updates, and technical support for their products. Additionally, Diebold Nixdorf engages in partnerships with financial institutions and retail companies, allowing them to expand their market reach and enhance product offerings. These partnerships often lead to recurring revenue through service agreements and upgrades, contributing to the company's overall financial performance.

Diebold Nixdorf Inc Financial Statement Overview

Summary

Diebold Nixdorf faces significant financial challenges with declining revenue and persistent net losses. Despite some improvements in financial leverage, the balance sheet is burdened by high debt, and cash flow management issues persist with negative operating and free cash flows.

Income Statement

Diebold Nixdorf's income statement reveals significant challenges. The company's revenue has declined over the years, with a noticeable drop in the latest TTM data compared to the previous year. The gross profit margin for TTM is approximately 31.32%, showing a slight improvement, yet the net income remains negative, leading to a negative net profit margin. Historical EBIT and EBITDA margins have been inconsistent, and the current TTM EBIT margin is 7.57%, indicating slight operational efficiency improvements but still insufficient to achieve profitability. Overall, the income metrics reflect instability and a need for strategic improvement to reverse the declining revenue trend.

Balance Sheet

The balance sheet presents a mixed view. While the company's debt-to-equity ratio has improved in TTM to around 1.00, indicating better financial leverage management compared to previous years, the total debt remains substantial. The equity ratio is approximately 26.22%, suggesting moderate stability, but the company still faces risk due to its high liabilities. Return on equity is not applicable due to negative equity in past years, highlighting financial distress. Overall, the balance sheet shows some improvement in leverage but remains under pressure from high debt levels.

Cash Flow

Cash flow analysis highlights ongoing cash management issues. Operating cash flow is negative in the TTM period, as is free cash flow, indicating challenges in generating cash from operations. The free cash flow to net income ratio is not favorable, reinforcing the difficulty in achieving cash profitability. Although there is a slight improvement in free cash flow from the previous year, the negative operating cash flow persists, suggesting the company continues to struggle with liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.69B	3.75B	3.76B	3.46B	3.91B	3.90B
Gross Profit	920.70M	920.00M	876.20M	757.30M	1.04B	1.03B
EBITDA	355.40M	334.90M	275.00M	-113.40M	293.70M	177.70M
Net Income	50.60M	-16.50M	1.38B	-581.40M	-78.80M	-269.10M
Balance Sheet
Total Assets	3.72B	3.54B	4.16B	3.06B	3.51B	3.66B
Cash, Cash Equivalents and Short-Term Investments	280.00M	313.10M	563.60M	332.00M	423.20M	361.70M
Total Debt	1.07B	1.05B	1.36B	2.73B	2.45B	2.50B
Total Liabilities	2.61B	2.61B	3.08B	4.44B	4.34B	4.47B
Stockholders Equity	1.11B	929.80M	1.06B	-1.38B	-845.10M	-827.10M
Cash Flow
Free Cash Flow	229.50M	131.80M	-281.90M	-441.00M	72.00M	-26.70M
Operating Cash Flow	279.40M	149.20M	-257.00M	-387.90M	123.30M	18.00M
Investing Cash Flow	-76.30M	-45.50M	-36.10M	-23.80M	-36.50M	-82.60M
Financing Cash Flow	-280.20M	-366.50M	559.50M	349.80M	-16.30M	16.90M

Diebold Nixdorf Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBD, the sentiment is Positive. The current price of 68 is above the 20-day moving average (MA) of 67.51, above the 50-day MA of 64.77, and above the 200-day MA of 56.24, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 57.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DBD.

Diebold Nixdorf Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	77 Outperform	$1.89B	18.16	21.35%	―	6.48%	168.94%
NATL	69 Neutral	$2.99B	24.73	41.41%	―	-0.14%	―
PDFS	69 Neutral	$1.20B	-16,005.26	-0.02%	―	21.23%	-101.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$629.99M	-13.15	-26.69%	―	13.09%	32.34%
DBD	58 Neutral	$2.44B	49.84	4.66%	―	-2.86%	985.78%
DOMO	48 Neutral	$340.66M	-4.74	―	―	-0.14%	21.60%