NCR Voyix Corp (VYX, Financial), a prominent player in the software industry, has recently witnessed a notable surge in its stock price. Over the past week, the company's shares have climbed by 10.87%, and over the last three months, they have gained an impressive 10.00%. Currently, the market capitalization stands at $2.03 billion with a stock price of $13.97. According to GuruFocus, the GF Value of the stock is $13.18, which suggests that it is fairly valued at the moment, compared to a modestly undervalued status three months ago when the GF Value was $15.04.
Company Overview
NCR Voyix Corp specializes in providing digital commerce solutions tailored for the retail, restaurant, and digital banking sectors. The company aims to enhance operational efficiency and customer experience through its diversified service offerings. It operates across three segments: Retail, Restaurants, and Digital Banking, each dedicated to delivering specialized software solutions and services. This strategic segmentation allows NCR Voyix to address the unique needs of its diverse client base effectively.
Assessing Profitability
Despite challenging market conditions, NCR Voyix Corp maintains a Profitability Rank of 5/10. The company's operating margin stands at -2.79%, which is better than 36.23% of its peers in the industry. However, its Return on Equity (ROE) and Return on Assets (ROA) are less encouraging at -40.80% and -5.14% respectively. These figures indicate that while the company is managing to stay afloat, it struggles with generating equity and asset returns higher than a significant portion of its competitors. Additionally, its Return on Invested Capital (ROIC) of -1.33% suggests that the company could improve how it reinvests its capital into the business.
Growth Metrics
The Growth Rank of NCR Voyix is currently at a low of 1/10, reflecting significant challenges in its growth trajectory. The company has experienced a decline in its 3-Year Revenue Growth Rate per Share by 17.40%, positioning it better than only 10.02% of its industry counterparts. Similarly, its 5-Year Revenue Growth Rate per Share also decreased by 14.80%. Most concerning is the 3-Year EPS without NRI Growth Rate, which plummeted by 230.50%, indicating severe profitability issues. These figures highlight the need for strategic adjustments to reverse the negative growth trends.
Significant Shareholders
Among the notable investors, First Pacific Advisors (Trades, Portfolio) holds a significant stake in NCR Voyix, owning 2,631,884 shares, which accounts for 1.82% of the company's shares. Following closely is Steven Romick (Trades, Portfolio), who holds 2,082,160 shares, representing 1.44% of the total shares. Joel Greenblatt (Trades, Portfolio) also has a stake in the company, albeit smaller, with 268,199 shares or 0.18% of the shares.
Competitive Landscape
In comparison to its competitors, NCR Voyix Corp is positioned within a challenging bracket. GDS Holdings Ltd (GDS, Financial) boasts a slightly higher market cap of $2.21 billion, while WNS (Holdings) Ltd (WNS, Financial) leads with a market cap of $2.48 billion. Xerox Holdings Corp (XRX, Financial), however, trails with a market cap of $1.41 billion, underscoring the competitive nature of the industry that NCR Voyix operates in.
Conclusion
In summary, NCR Voyix Corp's recent stock performance has been impressive, with a 10% increase over the past three months. However, the company faces significant challenges in terms of profitability and growth. The competitive landscape and the current financial metrics suggest that while the stock is fairly valued at present, potential investors should keep an eye on the company's strategic initiatives aimed at reversing the negative growth trends and improving profitability. The involvement of notable investors like First Pacific Advisors (Trades, Portfolio) and Steven Romick (Trades, Portfolio) also adds a layer of investor confidence in the stock's future prospects.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
