NCR Atleos Corporation Common Stock (NATL)

FairStock Score: 57/100 — STEADY

Key Financials

Strengths

• Generates $433 million in annual free cash flow (12.9% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 51.8% demonstrating efficient capital deployment
• Established organization with 20,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($16) with negative 180% margin of safety—limited downside protection
• High leverage at 7.39x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

NCR Atleos Corporation Common Stock is a small-cap technology company valued at $3.4 billion. The business generates $4.4 billion in annual revenue with a 1.9% net margin and $433 million in free cash flow. From a quality standpoint, NCR shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 0.7 warrants caution. On valuation, the stock is reasonably priced at 21.2x earnings, with trades far above its Graham Number ($16) with no margin of safety. Growth dynamics show revenue growing at 4.0% and profit growth of 80.4%. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $433 million in annual free cash flow (12.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 7.4x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer