One-glance verdict
Within fair range
$40.17 our estimate vs market $46.26
Wall Street consensus: $50.27 (25.1% higher than our fair-value estimate)
15% above our estimate
Fundamentals snapshot
NCR Atleos Corporation
NATL · NYQ · Technology · Software - Application
Current price
$46.26
52-week range
$33.31 - $48.50
Market cap
$3.41B
Balance sheet
Distressed
1.77x Concerning
Net debt $2.51B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.5% last year.
- Reward Returns 48.5% on equity, ahead of 83% of its peers.
- Risk Net debt grew 313.0% over 3 years.
- Risk Insider ownership is only 1.3% (peer median: 2.9%).
What this company does
NCR Atleos Corporation
NCR Atleos is the company behind many of the automated teller machines (ATMs) you see at banks and in stores. It makes money primarily by selling and servicing these machines and by operating its own large ATM network that other banks and financial apps pay to use. This is important because a lot of its business comes from ongoing service contracts and network fees, which create steady recurring revenue (income that comes in regularly, like a subscription) for the company.
How the company got here
NCR Atleos has a long history, with roots in the National Cash Register company founded way back in 1884. For decades, it was a major part of NCR, building a large business around ATMs and other self-service banking technology. A key moment was in 2021 when its parent company acquired Cardtronics, which added a huge ATM network called Allpoint. In October 2023, the original NCR Corporation split into two separate, publicly traded companies, and NCR Atleos was created to focus entirely on the ATM and self-service banking side of the business.
What it actually does
NCR Atleos helps banks and retail stores provide self-service banking to their customers, mainly through ATMs. Think of them as a one-stop shop for everything an ATM needs: they manufacture the machines, create the software that runs them, and provide the services to install, maintain, and manage them. They also run the world's largest network of surcharge-free ATMs, which you might have seen in stores like CVS or Target. This allows banks and even newer digital-only banks to give their customers access to cash without having to build their own physical branches.
Self-Service Banking
This is the company's largest business segment and its most traditional one. It involves selling ATM and ITM (Interactive Teller Machine) hardware, the specialized software that makes them work, and all the related services to keep them running. Financial institutions like banks and credit unions pay NCR Atleos for new machines, software licenses (the right to use the software), and ongoing maintenance contracts to ensure the ATMs are always working. This segment also includes a growing offering called "ATM as a Service," where a bank can completely outsource the management of its entire ATM fleet to Atleos for a single fee.
Network
This part of the business is all about connecting people to their money through a massive web of ATMs. Its most well-known service is the Allpoint network, which provides surcharge-free cash withdrawal access at tens of thousands of ATMs located in popular retail stores. Financial institutions, digital banks, and fintech companies (technology companies focused on finance) pay Atleos to give their customers access to this convenient network. This segment earns money from transaction fees and by providing ATM branding and management services to retailers and other businesses.
Telecommunications & Technology (T&T)
This is a smaller but still important part of the company that provides technology services to clients outside of banking. It offers managed network services, which means it helps companies in industries like telecom and retail to design, deploy, and manage their computer and communication networks. For example, a large company could hire Atleos to install and maintain its Wi-Fi network or other complex tech infrastructure across many locations. This segment provides a steady source of revenue (money the company earns) and cash flow (the cash generated by business operations).
What management is betting on now
The company's main focus is to grow its service-based businesses, which generate recurring revenue (predictable income from ongoing contracts, rather than one-time sales). A major priority is expanding its "ATM as a Service" offering, where it completely takes over the management of a bank's ATM fleet. They are also focused on growing the Allpoint Network to provide even wider cash access for banks, retailers, and their customers. By emphasizing software and services over just selling hardware, management aims to create more stable and predictable financial results.
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.
FY2024 Q3
$85.00M
FY2024 Q4
$62.00M
FY2025 Q1
$94.00M
FY2025 Q2
$-44.00M
FY2025 Q3
$-5.00M
FY2025 Q4
$194.00M
FY2026 Q1
$-36.00M
FY2026 Q2
$4.00M
Revenue
$1.10B
Net income
$65.00M
Diluted EPS
0.86
Operating cash flow
$30.00M
Free cash flow
$4.00M
Fetching…
Sources
Revenue
$1.04B
Net income
$22.00M
Diluted EPS
0.29
Operating cash flow
$-9.00M
Free cash flow
$-36.00M
Fetching…
Sources
Revenue
$1.15B
Net income
$83.00M
Diluted EPS
1.09
Operating cash flow
$231.00M
Free cash flow
$194.00M
Fetching…
Sources
Revenue
$1.12B
Net income
$26.00M
Diluted EPS
0.34
Operating cash flow
$25.00M
Free cash flow
$-5.00M
Fetching…
Sources
Revenue
$1.10B
Net income
$45.00M
Diluted EPS
0.60
Operating cash flow
$-23.00M
Free cash flow
$-44.00M
Fetching…
Sources
Revenue
$980.00M
Net income
$17.00M
Diluted EPS
0.23
Operating cash flow
$123.00M
Free cash flow
$94.00M
Fetching…
Sources
Revenue
$1.11B
Net income
$41.00M
Diluted EPS
0.55
Operating cash flow
$80.00M
Free cash flow
$62.00M
Fetching…
Sources
Revenue
$1.08B
Net income
$24.00M
Diluted EPS
0.32
Operating cash flow
$107.00M
Free cash flow
$85.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $40.17 vs current price $46.26
Wall Street consensus is the average analyst price target: $50.27 (25.1% higher than our fair-value estimate).
Our most-likely fair value is $40.17 a share — about 13.2% away from today's price of $46.26, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $2.5B. Interest coverage 1.8x.
Net debt
$2.51B
Interest coverage
1.77x
NCR Atleos Corporation's profit covers its interest bill about 1.8 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
NATL
BASELINE
NCR Atleos Corporation
Total debt $2.94B Interest coverage 1.77x This is the baseline the peer rows are being compared against.
Total debt $1.11B Interest coverage 2.82x +60% vs NATL Carries about 1.6x more debt cushion than NATL.
Total debt $2.81B Interest coverage 6.27x +254% vs NATL Carries about 3.5x more debt cushion than NATL.
Total debt $4.56B Interest coverage 2.40x +35% vs NATL Carries about 1.4x more debt cushion than NATL.
Total debt $10.39M Interest coverage 12,590.00x +711,051% vs NATL Carries about 7111.5x more debt cushion than NATL.
Total debt $0.00 Interest coverage 5.67x +220% vs NATL Carries about 3.2x more debt cushion than NATL.
What you should know
The case for and against NATL
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.5% last year.
-
Returns 48.5% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
-
Net debt grew 313.0% over 3 years.
-
Insider ownership is only 1.3% (peer median: 2.9%).
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)
17.93x
Forward P/E
8.27x
P/B
8.62x
P/S
0.77x
EV/EBITDA
7.04x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
25.3%
Operating margin
14.3%
Net margin
4.4%
ROE
48.5%
ROA
6.2%
Health
Liquidity and balance-sheet strength
Debt / equity
6.33x
Current ratio
1.03x
Quick ratio
0.57x
Total debt
$2.94B
Total cash
$429.00M
Growth
How the business has been compounding
Revenue TTM
$4.42B
Revenue 5Y CAGR
5.2%
EPS TTM
2.58
EPS 5Y CAGR
15.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$277.00M
Free CF TTM
$239.00M
FCF margin
5.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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