One-glance verdict
Undervalued
$92.00 our estimate vs market $78.00
Wall Street consensus: $98.33 (6.9% higher than our fair-value estimate)
15% below our estimate, below the bear case
Fundamentals snapshot
Diebold Nixdorf, Incorporated
DBD · NYQ · Technology · Software - Application
Current price
$78.00
52-week range
$54.48 - $92.08
Market cap
$2.65B
Balance sheet
Stretched
2.82x Stretched
Net debt $841.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 1.7% last year.
- Reward Returns 10.9% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 3/10 years.
What this company does
Diebold Nixdorf, Incorporated
Diebold Nixdorf makes the machines that handle cash and payments at banks and retail stores, such as ATMs and self-checkout systems. The company earns money not just from selling this equipment, but also from providing the software and long-term service contracts needed to operate and maintain it. This is important because these service contracts create recurring revenue (income that's predictable and comes in regularly, like a subscription), making the business less dependent on one-time hardware sales.
How the company got here
Diebold Nixdorf started way back in 1859 making safes and bank vaults, building a reputation for security. Over many decades, it moved into making automated teller machines (ATMs). A major turning point was in 2016, when the American-based Diebold bought a German company called Wincor Nixdorf, which was strong in retail technology and had a large presence in Europe. This combination created the company as it is today, a global player in technology for both banking and shopping. After facing financial challenges, the company went through a restructuring in 2023 to reduce its debt and strengthen its financial health.
What it actually does
You've likely used Diebold Nixdorf's products without even knowing it. The company makes the ATMs you use to get cash, the self-checkout machines at the grocery store, and the point-of-sale (the industry term for cash registers and payment terminals) systems where you pay at a retailer. Beyond just the physical machines, they provide the critical software that runs them and the services to install, maintain, and keep them secure. Essentially, they provide the technology that helps banks and stores handle our cash and payments smoothly and securely.
Banking
This is the company's largest business area, making up the majority of its sales. Its main customers are financial institutions, from the world's largest banks to smaller local credit unions. Diebold Nixdorf sells them ATMs, cash recycling machines (which can both accept and dispense cash), and other hardware for bank branches. Just as important is the software that makes these machines smart and the managed services (ongoing operational support that a company outsources) to keep the entire fleet of machines running, secure, and up-to-date.
Retail
This part of the business focuses on technology for stores. Think of the self-checkout lanes at a supermarket, the touch-screen kiosks where you order at a fast-food restaurant, or the cash register systems at a clothing store; Diebold Nixdorf makes those. They sell these systems to large retailers, especially those with many locations and a high volume of transactions. Similar to the banking side, they also provide the software that manages payments and store operations, as well as services to keep everything working smoothly for shoppers.
What management is betting on now
The company's main focus is to grow by selling more software and services, which tend to have better margins (the portion of sales that turns into profit) than just selling hardware. They are encouraging existing banking customers to modernize their older ATM fleets and helping retailers who are increasingly adopting self-checkout and other store automation. After its recent financial restructuring, management is also highly focused on improving profitability and generating steady free cash flow (cash left over after paying for operating expenses and capital expenditures, which are investments in long-term assets like equipment). The goal is to become a more stable and consistently profitable company.
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
$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
Revenue
$927.10M
Net income
$-22.40M
Diluted EPS
-0.60
Operating cash flow
$-15.50M
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $92.00 vs current price $78.00
Wall Street consensus is the average analyst price target: $98.33 (6.9% higher than our fair-value estimate).
Our most-likely fair value is $92.00 a share — about 18.0% above today's price of $78.00, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $841.6M. Interest coverage 2.8x.
Net debt
$841.60M
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 2 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 $1.11B Interest coverage 2.82x This is the baseline the peer rows are being compared against.
Total debt $2.94B Interest coverage 1.77x -37% vs DBD Carries about 1.6x less debt cushion than DBD.
Total debt $1.31B Interest coverage 0.43x -85% vs DBD Carries about 6.5x less debt cushion than DBD.
Total debt $2.81B 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 $433.82M Interest coverage -11.36x -100% vs DBD This peer has almost no interest-payment cushion compared with DBD.
What you should know
The case for and against DBD
3 Rewards
0 Risks
Rewards
-
Revenue grew 1.7% last year.
-
Returns 10.9% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
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)
25.83x
Forward P/E
11.11x
P/B
2.74x
P/S
0.68x
EV/EBITDA
7.59x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
26.3%
Operating margin
8.3%
Net margin
2.9%
ROE
10.9%
ROA
5.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.14x
Current ratio
1.27x
Quick ratio
0.68x
Total debt
$1.11B
Total cash
$267.20M
Growth
How the business has been compounding
Revenue TTM
$3.87B
Revenue 5Y CAGR
-0.6%
EPS TTM
3.02
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$273.00M
Free CF TTM
$239.00M
FCF margin
6.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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