Is TDC a high-quality business?

AlphaMadera's AlphaQuality grade scores Teradata Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how TDC compares to a Buffett-style quality bar.

What is Teradata Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to TDC based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes TDC a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

TDC - Teradata Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $34.80 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B- 68.6 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

B+ 78.3

5yr Avg ROIC 15.3% 81/100
Operating Margin Trend +0.59 pp/yr 73/100

Capital Efficiency

Weight: 15%

A+ 99.0

5yr Avg ROE 42.3% 100/100
5yr Share-Count CAGR -3.8% 97/100

Growth Quality

Weight: 15%

F 23.1

5yr Revenue CAGR -3.5% 13/100
5yr EPS CAGR 0.9% 26/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

B+ 78.3

5yr FCF Margin 19.5% 89/100
5yr FCF/NI Conversion 5.10x 65/100

Balance Sheet

Weight: 20%

B+ 76.6

Net Debt / EBITDA 0.25x 92/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 1.21 20/100

Stability

Weight: 15%

C- 50.4

EPS Volatility (σ/μ) 0.50 31/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 3/5 40/100

3 of 3 gurus held; 1 added; 2 trimmed.

Holders: 3
Avg Δ position: -31.7%
New buys: 0
Full exits: 0

Cooperman decreased -86%
Dalio decreased -23%
Greenblatt increased +13%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.