One-glance verdict
Undervalued
$119.75 our estimate vs market $55.82
Wall Street consensus: $85.00 (-29.0% lower than our fair-value estimate)
53% below our estimate, below the bear case
Fundamentals snapshot
Diebold Nixdorf, Incorporated
DBD · NYQ · Technology · Software - Application
Current price
$55.82
52-week range
$52.87 - $92.08
Market cap
$1.87B
Balance sheet
Stretched
2.82x Stretched
Net debt $955.90M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.0% last year.
- Reward Returns 7.7% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 1.7% (peer median: 5.6%).
What this company does
Diebold Nixdorf, Incorporated
Diebold Nixdorf provides technology that helps banks and stores manage cash and customer transactions, like ATMs and self-checkout machines. Most of their money comes from selling and servicing these machines for banks and retailers worldwide. This matters because it helps these businesses run smoothly and efficiently by automating everyday tasks.
How the company got here
Diebold Nixdorf has a long history, tracing its roots back to 1859 when it started as a manufacturer of safes and vaults. Over time, it evolved into a major player in financial self-service technology. A significant turning point was the 2016 merger with Wincor Nixdorf, a German company, which combined their expertise in ATMs and retail solutions. This merger aimed to create a more comprehensive global presence and a broader product portfolio to compete in the rapidly changing technology landscape. The company was formerly known as Diebold, Incorporated before this name change to reflect the combined entity.
What it actually does
Diebold Nixdorf helps banks and retailers modernize how people interact with their services. Think of the self-checkout machines at the grocery store or the ATMs where you withdraw cash – Diebold Nixdorf provides the technology behind many of these. They offer both the physical machines and the software that makes them work, aiming to make banking and shopping more efficient and digital for everyone.
Banking
This part of Diebold Nixdorf focuses on the financial industry, providing banks with the tools they need to serve customers. This includes ATMs (automated teller machines) that dispense cash and allow for basic transactions, as well as more advanced cash recyclers that can sort and store cash efficiently. They also offer software solutions that help banks manage their branches and connect their systems. This segment is a significant portion of the company's business, serving financial institutions worldwide.
Retail
In the retail sector, Diebold Nixdorf provides technology that helps stores operate more smoothly and offer better customer experiences. This includes point-of-sale (POS) systems, which are the checkout terminals where you pay for your items, and self-checkout kiosks that allow shoppers to scan and pay for their own groceries. They also offer software for managing loyalty programs, digital receipts, and analyzing sales data to help retailers understand their customers better. This segment is also a key revenue generator for the company.
What management is betting on now
Diebold Nixdorf's management is focused on transforming the company by embracing digital solutions and enhancing its software offerings. They are investing in technologies that improve the customer experience in both banking and retail, such as AI-powered predictive maintenance for their machines to reduce downtime. The strategy also involves strengthening their managed services, which means providing ongoing support and operational expertise to clients. This shift aims to move the company beyond just selling hardware to offering more integrated, software-driven solutions.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$994.30M
Net income
$6.60M
Diluted EPS
0.19
Operating cash flow
$-47.40M
Free cash flow
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Sources
Revenue
$930.80M
Net income
$15.50M
Diluted EPS
0.44
Operating cash flow
$-13.60M
Free cash flow
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Sources
Revenue
$891.80M
Net income
$5.00M
Diluted EPS
0.14
Operating cash flow
$31.70M
Free cash flow
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Sources
Revenue
$1.10B
Net income
$49.60M
Diluted EPS
1.32
Operating cash flow
$217.50M
Free cash flow
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Sources
Revenue
$945.20M
Net income
$41.10M
Diluted EPS
1.11
Operating cash flow
$37.40M
Free cash flow
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Sources
Revenue
$915.20M
Net income
$12.20M
Diluted EPS
0.33
Operating cash flow
$30.10M
Free cash flow
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Sources
Revenue
$841.10M
Net income
$-8.30M
Diluted EPS
-0.22
Operating cash flow
$15.70M
Free cash flow
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Sources
Revenue
$988.90M
Net income
$5.60M
Diluted EPS
0.15
Operating cash flow
$196.20M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $119.75 vs current price $55.82
Wall Street consensus is the average analyst price target: $85.00 (-29.0% lower than our fair-value estimate).
Our most-likely fair value is $119.75 a share — about 114.5% above today's price of $55.82, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $955.9M. Interest coverage 2.8x.
Net debt
$955.90M
Interest coverage
2.82x
Diebold Nixdorf, Incorporated's profit covers its interest bill about 2.8 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
DBD
BASELINE
Diebold Nixdorf, Incorporated
Total debt $1.12B Interest coverage 2.82x This is the baseline the peer rows are being compared against.
Total debt $1.31B Interest coverage 0.43x -85% vs DBD Carries about 6.5x less debt cushion than DBD.
Total debt $2.32B Interest coverage 6.27x +122% vs DBD Carries about 2.2x more debt cushion than DBD.
Total debt $4.56B Interest coverage 2.40x -15% vs DBD Carries about 1.2x less debt cushion than DBD.
Total debt $4.57B Interest coverage 1.77x -37% vs DBD Carries about 1.6x less debt cushion than DBD.
Total debt $0.00 Interest coverage 25.33x +797% vs DBD Carries about 9.0x more debt cushion than DBD.
What you should know
The case for and against DBD
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.0% last year.
-
Returns 7.7% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 1.7% (peer median: 5.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
26.45x
Forward P/E
9.10x
P/B
2.00x
P/S
0.48x
EV/EBITDA
6.12x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
26.0%
Operating margin
9.1%
Net margin
2.0%
ROE
7.7%
ROA
6.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.19x
Current ratio
1.27x
Quick ratio
0.65x
Total debt
$1.12B
Total cash
$169.00M
Growth
How the business has been compounding
Revenue TTM
$3.92B
Revenue 5Y CAGR
-0.6%
EPS TTM
2.11
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$188.20M
Free CF TTM
$239.00M
FCF margin
6.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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