Teradata Corporation (TDC): a likely value trap?

Avoid — cheap looking numbers hide a shrinking legacy business now facing a genuine AI-agent disruption threat, plus insider selling.

⚠ TRAP Fundamentals61/100

Fell 20% in 11 trading day(s) — now $28.09

Why TDC dropped

The recent slide is a mix of company-specific and sector causes: weak guidance for continued revenue declines, a salary freeze to fund AI spending, insider stock sales by the CEO and revenue chief, plus a broader software-sector selloff triggered by fear that new AI agent tools (like Anthropic's) could replace legacy enterprise data platforms like Teradata's.

Fwd P/E 9.8Op margin 19.1%Rev growth 6.2%Debt/equity 99.3%Analyst upside 26.4%

How this scored 61/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 24.9%

✅ Generates cash Free cash flow $335M

✅ Not drowning in debt Debt/equity 99.3% (limit 200%)

✅ Can pay its bills Current ratio 1.3 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 23/25

Operating margin 19.1% 7/9

Net profit margin 24.9% 8/8

Return on equity 117.8% 8/8

Growth Is it getting bigger, or dying? 11/25

Revenue growth 6.2% 3/9

Earnings growth 671.1% 8/8

Expected profit change -34.3% 0/8

Value Is it cheap right now? 13/25

Forward P/E 9.8 9/10

PEG ratio 6.0 0/8

Analyst target upside 26.4% 3/7

Balance sheet Will it survive? 14/25

Debt / equity 99.3% 6/10

Current ratio 1.3 2/8

Free cash flow $335M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-23. Research only — not financial advice.