NCR Atleos, LLC (NATL) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 720.52K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.83
• Revenue Growth: -0.19%
• EPS Growth: N/A
• Country: US
• Employees: 20,000
• Sector: Technology
• Sector Strength: 96
• Industry: Software - Application
• EPS (TTM): 0.64
• Shares Outstanding: 73,454,346
• 10 Day Avg. Volume: 1,140,457
• 30 Day Avg. Volume: 720,520
• PEG Ratio: 0.22
• Price to Book (P/B): 7.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.71
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 4.52
• Enterprise Value/Ebitda: 1.64
• 1Y Price Target: $42.33
• Price Target Upside: 56.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: $28.00 ▲(3.40%Upside)

The overall stock score reflects a mixed financial performance with high leverage and revenue growth challenges, mitigated by strong earnings call results highlighting strategic progress and future growth optimism. The technical analysis suggests a bearish trend, while valuation is moderate.

Positive Factors

Cash Flow

The potential to triple free cash flow generation is enabled by high-margin ATMaaS and network-driven EBITDA expansion, lower cash interest, and more capex-light deals.

Customer Growth

NATL is seeing 9% withdrawal growth versus the industry's ~1%-2%.

Market Positioning

NATL's market positioning is arguably the strongest of peers and best positioned to capture a demand shift for managed and ATMaaS products.

Negative Factors

Market Valuation

NATL trades at a 10% MC/FCF discount to its closest peers and is expected to trade at a premium given FCF growth and profitability improvement.

NCR Atleos, LLC Business Overview & Revenue Model

Company Description

NCR ATMCo, LLC operates as a financial technology company in the United States, rest of Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Self-Service Banking, Payments and Network, and Telecommunications and Technology. It provides self-directed banking solutions through automated and interactive teller machine technology, including software, services, hardware, and Allpoint network. The company also offers managed network and infrastructure services to enterprise clients across various industries through direct relationships with communications service providers and technology manufacturers. It serves financial institutions, merchants, manufacturers, retailers, and consumers. The company is headquartered in Atlanta, Georgia.

How the Company Makes Money

NCR Atleos, LLC generates revenue primarily through the sale and leasing of its hardware products such as ATMs and point-of-sale systems. Additionally, the company earns income from software subscriptions and service agreements, which provide ongoing support and updates to its technology solutions. NCR Atleos also capitalizes on partnerships with financial institutions and retailers, offering customized solutions that cater to specific operational needs. Service contracts and maintenance agreements further contribute to the company's steady income, ensuring long-term relationships with clients and sustained revenue streams.

NCR Atleos, LLC Financial Statement Overview

Summary

NCR Atleos, LLC shows a mixed financial picture with moderate profitability and cash generation but is constrained by high leverage. Revenue growth is a concern, and maintaining profitability amidst rising debt is crucial. The company needs to focus on improving revenue growth and managing its debt levels to enhance financial health.

Income Statement

The income statement shows a modest level of profitability and growth. The gross profit margin for TTM is 24.04%, indicating decent cost management. The net profit margin is relatively low at 0.82%, reflecting tight profit control. Revenue decreased by 1.62% in TTM compared to the previous annual period, suggesting challenges in revenue growth. The EBIT margin is 11.13%, and EBITDA margin is 17.33%, showing reasonable operating efficiency.

Balance Sheet

The balance sheet presents a leveraged position with a high debt-to-equity ratio of 10.98, indicating significant reliance on debt financing. Return on Equity (ROE) is 12.73% for TTM, showing moderate returns for shareholders. The equity ratio is low at 4.79%, reflecting a small equity base compared to total assets, highlighting potential risk in stability.

Cash Flow

The cash flow statement demonstrates positive cash generation. Operating cash flow to net income ratio for TTM is 9.11, indicating strong cash flow relative to reported earnings. Free cash flow to net income ratio is 4.83, suggesting efficient cash management. Free cash flow decreased by 17.56% in TTM, indicating a decline in cash availability for reinvestment.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.32B	4.19B	4.36B	3.55B
Gross Profit	1.03B	933.00M	918.00M	892.00M
EBITDA	449.00M	451.00M	447.00M	459.00M
Net Income	91.00M	-134.00M	-284.00M	186.00M
Balance Sheet
Total Assets	5.55B	5.74B	5.77B	5.58B
Cash, Cash Equivalents and Short-Term Investments	419.00M	339.00M	293.00M	238.00M
Total Debt	3.05B	3.12B	884.00M	1.46B
Total Liabilities	5.29B	5.45B	2.51B	3.24B
Stockholders Equity	260.00M	284.00M	3.26B	2.33B
Cash Flow
Free Cash Flow	205.00M	223.00M	177.00M	338.00M
Operating Cash Flow	344.00M	355.00M	274.00M	449.00M
Investing Cash Flow	-135.00M	-316.00M	-417.00M	-2.49B
Financing Cash Flow	-134.00M	31.00M	183.00M	2.35B

NCR Atleos, LLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NATL, the sentiment is Negative. The current price of 27.08 is below the 20-day moving average (MA) of 28.26, below the 50-day MA of 27.82, and below the 200-day MA of 28.96, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NATL.

NCR Atleos, LLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	81 Outperform	$3.31B	238.47	5.21%	―	17.91%	-86.60%
PLUS	73 Outperform	$1.80B	16.92	11.49%	―	-7.54%	-6.40%
CALX	65 Neutral	$3.69B	―	-3.52%	―	-8.80%	-657.91%
NATL	64 Neutral	$2.03B	17.41	41.58%	―	-0.19%	―
Sector *	63 Neutral	$34.93B	5.90	-12.00%	2.00%	5.61%	-19.55%
PAR	61 Neutral	$2.75B	―	-13.65%	―	-8.82%	90.01%
DBD	48 Neutral	$2.15B	0.78	-1.02%	―	-2.66%	-100.56%

NCR Atleos, LLC Corporate Events

NCR Atleos Holds 2025 Annual Stockholders Meeting

NCR Atleos Corporation held its 2025 Annual Meeting of Stockholders on May 21, 2025, where several key decisions were made. Eight directors were elected to serve until the 2026 Annual Meeting, executive compensation was approved on a non-binding basis, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2025.

The most recent analyst rating on (NATL) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on NCR Atleos, LLC stock, see the NATL Stock Forecast page.

NCR Atleos Reports Strong Q1 2025 Financial Results

On May 7, 2025, NCR Atleos Corporation announced its financial results for the first quarter of 2025, reporting strong performance with profits and earnings meeting or exceeding guidance ranges. The company experienced a 40% increase in unique ATM as a Service customers and a 24% rise in revenue year-over-year. Despite macroeconomic disruptions, Atleos maintained a positive outlook for the year, reaffirming its full-year guidance and highlighting its strategic focus on operational improvements and product innovation.