One-glance verdict
Within fair range
$37.88 our estimate vs market $45.64
Wall Street consensus: $50.20 (32.5% higher than our fair-value estimate)
20% above our estimate
Fundamentals snapshot
NCR Atleos Corporation
NATL · NYQ · Technology · Software - Application
Current price
$45.64
52-week range
$33.31 - $48.50
Market cap
$3.37B
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 makes and manages the ATM machines you find at banks, stores, and other locations around the world. The company earns much of its money not just from selling the machines, but by running large ATM networks for banks and retailers, collecting fees for providing this service. This matters because even in an increasingly digital world, their business provides the essential physical link for people and businesses to get and deposit cash.
How the company got here
NCR Atleos has a long history, with its roots tracing back to the National Cash Register company founded in 1884. For decades, it was a major player in self-service banking and ATMs. A key turning point was the acquisition of Cardtronics in 2021, which added a large ATM network and significantly expanded its business. In October 2023, the original NCR Corporation split into two separate companies, and NCR Atleos was born to focus exclusively on the ATM and self-service financial access business.
What it actually does
NCR Atleos is a company that provides the technology and services behind many of the ATMs you see and use every day. They manufacture the ATM hardware, create the software that runs on them, and provide installation and maintenance services to keep them running. For banks and other financial institutions, they offer to manage and run their entire ATM network as a service. They also operate a large network of their own ATMs, often found in retail stores, that allows customers of many different banks to withdraw cash.
Self-Service Banking
This is the company's core business, focused on everything related to ATMs. They sell ATM machines and the software that operates them to banks and financial institutions. A significant part of this segment is providing ongoing services, such as maintenance and support, to ensure the ATMs are always working. They also offer "ATM as a Service," where they take over the complete management of a bank's ATM fleet, from cash management to technology updates.
Network
This part of the business is about connecting people to their money through a large web of ATMs. They operate the Allpoint network, which is a large, surcharge-free ATM network that gives customers of participating banks, credit unions, and digital banks access to cash without paying extra fees. Retailers and other businesses pay to have these ATMs in their locations, and financial institutions pay for their customers to have access to this broad network. This segment also includes services that allow consumers to buy and sell Bitcoin at their ATMs through their LibertyX solution.
Telecommunications & Technology (T&T)
This is a smaller but still important part of the company that provides managed network and infrastructure services to large businesses in various industries. Think of it as an IT support team for other companies' complex communication networks. They offer services like installing and maintaining network equipment, monitoring network performance, and providing on-site technical support. Their customers are typically large enterprise clients and communications service providers.
What management is betting on now
The company's main focus is to shift from just selling ATM hardware to providing more ongoing services that generate predictable, recurring revenue (income that is expected to continue in the future). A big part of this is expanding their "ATM as a Service" offering, where they manage everything for a financial institution, which is becoming more popular as banks look to reduce costs. They are also focused on growing their Allpoint network to connect more banks, retailers, and financial technology companies. The overall goal is to become the essential partner for all things related to self-service financial access.
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 $37.88 vs current price $45.64
Wall Street consensus is the average analyst price target: $50.20 (32.5% higher than our fair-value estimate).
Our most-likely fair value is $37.88 a share — about 17.0% away from today's price of $45.64, 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 $1.47M 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)
17.69x
Forward P/E
8.51x
P/B
7.26x
P/S
0.76x
EV/EBITDA
6.84x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
25.3%
Operating margin
15.0%
Net margin
4.4%
ROE
48.5%
ROA
6.3%
Health
Liquidity and balance-sheet strength
Debt / equity
6.34x
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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