NCR Atleos, LLC (NATL) AI Stock Analysis

• Market Cap: $1.97B
• Dividend Yield: N/A
• Average Volume (3M): 447.84K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.73
• Revenue Growth: 3.01%
• EPS Growth: N/A
• Country: US
• Employees: 20,000
• Sector: Technology
• Sector Strength: 46
• Industry: Software
• EPS (TTM): 1.22
• Shares Outstanding: 73,041,670
• 10 Day Avg. Volume: 572,462
• 30 Day Avg. Volume: 447,843
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.46
• Price to Cash Flow (P/CF): 6.20
• P/FCF Ratio: 5.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $39.33
• Price Target Upside: 44.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

NCR Atleos shows strong profitability improvement and strategic growth plans, but challenges such as reliance on equity financing and market volatility remain. Technical indicators suggest cautious optimism, while valuation is fair. Overall, the stock presents moderate growth potential with some risks.

Positive Factors

Financial Performance

The potential to triple free cash flow generation is enabled by high-margin ATMaaS and network-driven EBITDA expansion, lower cash interest, and more capex-light deals.

Market Positioning

NATL's market positioning is arguably the strongest of peers and best positioned to capture a demand shift for managed and ATMaaS products.

Revenue Growth

Revenue growth should improve due to increasing ATMaaS adoption and higher revenue per unit in the company’s owned ATM network.

Negative Factors

Industry Challenges

The volume of ATMs is unlikely to increase much in the future, if at all, which may limit growth opportunities.

Market Valuation

All else remaining equal, more conviction in estimates and in the pace and scope of the evolution of the ATMaaS industry is needed to become more constructive.

NCR Atleos, LLC Business Overview & Revenue Model

Company Description

NCR Atleos, LLC (NATL) is a technology company that operates within the financial services and telecommunications sectors. It specializes in providing innovative solutions for transaction processing and customer engagement, primarily through its advanced software and hardware systems. The company offers a range of products and services designed to enhance the efficiency and effectiveness of financial transactions and customer interactions, catering to businesses seeking to improve their operational capabilities and customer experiences.

How the Company Makes Money

NCR Atleos, LLC generates revenue through the sale and licensing of its software solutions and hardware systems, which are used by clients in the financial services and telecommunications industries. Key revenue streams include subscription fees for software as a service (SaaS) offerings, sales of point-of-sale (POS) systems and self-service kiosks, and ongoing maintenance and support services. The company also benefits from strategic partnerships with major financial institutions and technology providers, which help expand its market reach and customer base. Additionally, NCR Atleos may engage in custom solution development and consulting services, further contributing to its revenue.

NCR Atleos, LLC Financial Statement Overview

Summary

NCR Atleos has improved profitability, transitioning from a net loss to a net income, and enhanced cash flow with a 54.2% increase in free cash flow. However, the reliance on equity financing and reduced asset base may limit future growth. Overall, the company shows positive financial momentum but needs to focus on sustainable revenue growth.

Income Statement

NCR Atleos, LLC shows a slight revenue growth of 3% from 2023 to 2024, with a significant improvement in net income from a loss of $134 million to a profit of $91 million. Gross profit margin increased marginally from 22.3% to 23.9%, and EBIT margin saw considerable improvement, rising from 6.5% to 10.4%. EBITDA margin remained stable. The shift from net loss to net income is a positive sign, indicating improved profitability, though continued growth in revenue is needed.

Balance Sheet

The balance sheet reflects a drastic reduction in total assets and liabilities in 2024, primarily due to a decrease in total debt to zero, potentially through debt restructuring or repayment. The equity ratio is significantly improved at 241.7% due to the reduction in liabilities. However, the debt-to-equity ratio is zero, which could indicate a high reliance on equity financing, potentially limiting growth opportunities.

Cash Flow

Free cash flow growth is strong, rising from $223 million to $344 million, a 54.2% increase. Operating cash flow is also healthy and stable, supporting net income and showing efficient cash management. The free cash flow to net income ratio is favorable, indicating that the company generates sufficient cash relative to its profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
4.32B	4.19B	4.36B	3.55B
	Gross Profit
1.03B	933.00M	918.00M	892.00M
	EBIT
449.00M	271.00M	257.00M	248.00M
	EBITDA
449.00M	451.00M	447.00M	459.00M
	Net Income Common Stockholders
91.00M	-134.00M	-284.00M	186.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
419.00M	339.00M	293.00M	238.00M
	Total Assets
5.55B	5.74B	5.77B	5.58B
	Total Debt
3.05B	3.12B	884.00M	1.46B
	Net Debt
2.63B	2.78B	591.00M	1.22B
	Total Liabilities
5.29B	5.45B	2.51B	3.24B
	Stockholders Equity
29.00M	284.00M	3.26B	2.33B
Cash Flow		Free Cash Flow
344.00M	223.00M	177.00M	338.00M
	Operating Cash Flow
344.00M	355.00M	274.00M	449.00M
	Investing Cash Flow
-135.00M	-316.00M	-417.00M	-2.49B
	Financing Cash Flow
-134.00M	31.00M	183.00M	2.35B

NCR Atleos, LLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NATL, the sentiment is Negative. The current price of 27.26 is above the 20-day moving average (MA) of 26.52, below the 50-day MA of 29.33, and below the 200-day MA of 29.61, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 64.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NATL.

NCR Atleos, LLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JKHY	76 Outperform	$13.07B	32.35	21.90%	1.26%	5.36%	8.62%
PAYX	73 Outperform	$54.08B	30.33	44.25%	2.61%	4.35%	4.86%
GPN	73 Outperform	$24.57B	16.05	6.94%	1.00%	4.68%	63.39%
WU	69 Neutral	$3.58B	3.82	129.04%	8.88%	-3.38%	63.33%
NATL	60 Neutral	$1.97B	22.18	33.46%	―	3.01%	―
Sector *	58 Neutral	$21.67B	10.60	-18.43%	2.42%	4.66%	-24.45%
FIS	51 Neutral	$39.50B	52.31	4.65%	1.93%	-17.38%	―

NCR Atleos, LLC Corporate Events

NCR Atleos Appoints New Chief Accounting Officer

NCR Atleos Corporation announced the appointment of Traci Hornfeck as Senior Vice President and Chief Accounting Officer, effective March 31, 2025. Ms. Hornfeck, who previously served as Chief Accounting Officer at Rollins, Inc., brings nearly 25 years of experience in accounting leadership roles, including positions at Equifax Inc. and PricewaterhouseCoopers, LLP. This strategic appointment is expected to enhance Atleos’ financial reporting and accounting transformation capabilities, supporting its growth as an independent public company.

NCR Atleos Reports Strong 2024 Financial Performance

NCR Atleos Corporation, a company specializing in ATM solutions, reported strong financial performance for the fourth quarter and full year 2024, with significant growth in revenue and earnings per share. The company achieved a 3% increase in full-year revenue to $4.3 billion and a 168% rise in net income, driven by enhanced customer service and operational efficiency. The positive results reflect Atleos’s successful execution of its growth strategy and improved profitability, positioning it optimistically for 2025.

NCR Atleos Adopts New Stock Incentive Agreements

On February 20, 2025, NCR Atleos, LLC’s Compensation & Human Resource Committee adopted a performance-based restricted stock unit award agreement as part of its 2023 Stock Incentive Plan. The agreement aims to grant equity awards to the executive leadership team, contingent on the company’s stockholder return compared to peers over a three-year period. Additionally, the committee introduced a time-based restricted stock unit award agreement, which vests annually in equal parts, with both agreements including provisions for accelerated vesting under certain conditions.

NCR Atleos Announces New CFO Appointment

NCR Atleos Corporation announced the appointment of Andrew Wamser as the new Executive Vice President and Chief Financial Officer, effective January 27, 2025. Wamser, who succeeds Paul Campbell, brings extensive experience from previous roles at BlueLinx Holdings, Mativ Holdings, and AutoNation. Campbell, whose career at Atleos and NCR Corp spanned 35 years, will stay on to ensure a smooth transition until April 1, 2025. This leadership change is seen as a strategic move to further enhance Atleos’ finance organization and drive value creation for shareholders.