Diebold Nixdorf, Incorporated (DBD) Report Analysis
The financials published by Diebold Nixdorf for Q1 were weak and discouraging. Their income and value factors indicate poor execution and potential strategy problems. These results indicate a weak income potential for Diebold Nixdorf's stock's price moving forward. We therefore gave Diebold Nixdorf a total score of 57 out of 100 and a UNDERPERFORM recommendation.
Diebold Nixdorf reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported revenue was USD 829.8 million compared to USD 943.9 million a year ago. Net loss was USD 183.1 million compared to USD 8.1 million a year ago. Basic loss per share from continuing operations was USD 2.33 compared to USD 0.1 a year ago. Diluted loss per share from continuing operations was USD 2.33 compared to USD 0.1 a year ago.
Business Description
Diebold Nixdorf provides connected commerce solutions to financial institutions and retailers in Western Europe, Eastern Europe, Asia, the Middle East, Africa, the United States, Canada, Mexico, and Latin America. It operates through Eurasia Banking, Americas Banking, and Retail segments. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, and kiosk technologies, as well as physical security solutions; and front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration, and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management, and analytics. It also provides banking product-related services comprising proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit; first- and second-line maintenance, preventive maintenance, and on-demand services; managed and outsourcing services, such as business processes, solution management, upgrades, and transaction processing; and cash management services. In addition, the company offers DN Vynamic software suite to simplify and enhance the consumer experience; mobile point of sale and self-checkout terminals; printers, scales, and mobile scanners; and banknote and coin processing systems. Additionally, it provides retail customer’s product-related services, such as on-demand and professional services; maintenance and availability services; implementation services; managed mobility services; monitoring and advanced analytics; and store life-cycle management services. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf in December 2016. Diebold Nixdorf was founded in 1859 and is headquartered in Hudson, Ohio.
Sector Overview
Diebold Nixdorf is included in the Technology Hardware, Storage & Peripherals according to GICS (global industry classification standard). The Technology Hardware, Storage & Peripherals industry is part of the Information Technology sector. It includes manufacturers of mobile phones, PCs, servers, electronic computer components and peripherals. Diebold Nixdorf's industry and sector affiliation are expected to negatively affect their likelihood to overperform the market in the upcoming period, as other sectors appear more likely to benefit from the macroeconomic environment we see now.
Parameter | Value | Change | Score | |
---|---|---|---|---|
Return on Equity | 27.5 | 190.1% | 73 | |
Net Cashflow | -10.1 | -115.7% | 38 | |
Capital Expenditure | -20.0 | -8.1% | 59 | |
Asset Turnover | 1.1 | 1.8% | 72 | |
Free Cashflow | -1.2 | -227.8% | 38 |
* All values are TTM
The below chart reflects Diebold Nixdorf's birds-eye view on its performance with respect to its peers, the company's fillings as reported or to a similar industry, market cap, and country of origin. While Diebold Nixdorf's peer average final assessment score stands on 70.0, Diebold Nixdorf's score is 57.
When trying to optimize the timing of an investment, it's critical to analyze whether the stock looks overbought or oversold, and in which direction the momentum is moving. Diebold Nixdorf's stock is now priced below its 5-day, 50-day, and 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is weakening. Historically, this is a negative setup in the near, medium, and long-term. The company is trading near it's 12-month low, which signals it struggle to keep above it support price. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Diebold Nixdorf's stock indicates that it's likely oversold. Overall, these technical indicators signal negative momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 42.
A few metrics from Diebold Nixdorf's current balance sheet were especially concerning: Cash & Equivalents and Equity. Diebold Nixdorf's management did a relatively poor job managing cash and cash equivalents, which now sit at 224.7 and represents a -42.2% change from the last reporting period. This performance is significantly less impressive than its peers and competitors. Its cash and cash equivalents movement, therefore, received a grade of 40. Also, Diebold Nixdorf reported weak equity changes momentum this period. At filing, equity was reported as -1016.7, representing -20.3% change from the previous report. This parameter often affects companies in the same industry and market capitalization by up to 4.3%. This performance is significantly less impressive than its peers and competitors. Its equity movement component, therefore, received a grade of 43. On the other hand, Assets, jumped out as looking rather positive. The company's assets section could set high expectations for Diebold Nixdorf's future attractiveness, as they went to 3316.5, which is a -5.4% change from the last period. These results, specifically in contrast to their industry peers' performance, should support an upswing in the company's stock price. The company's asset component, therefore, received a grade of 83. Therefore, the company's balance sheet earned a grade of 54.
Parameter | Value | Change | Score |
---|---|---|---|
Assets | 3,316.5 | -5.4% | 83 |
Liabilities | 4,325.1 | -0.4% | 65 |
Price to Book | -0.2 | 71.4% | 56 |
Cash & Equivalents | 224.7 | -42.2% | 40 |
Equity | -1,016.7 | -20.3% | 43 |
The below chart describes Diebold Nixdorf's performance as reflected on its balance sheet with respect to its peers. While Diebold Nixdorf received a balance sheet score of 54, the average of its peers stands on 65.0.
Name | Market Cap | Liabilities Movement | Asset Change | Equity/Intangibles Adjustments | Cash & Equivalents | Book Value Momentum | Balance Sheet | mc_sort | Hidden |
---|---|---|---|---|---|---|---|---|---|
Dell Technologies Inc. | 37.2B | 56 | 80 | 57 | 44 | 55 | 54 | 0 | 1 |
HP Inc. | 36.5B | 71 | 73 | 97 | 91 | 92 | 95 | 1 | 1 |
Hewlett Packard Enterprise Company | 18.4B | 52 | 78 | 73 | 46 | 67 | 63 | 2 | 1 |
Pure Storage, Inc. | 8.0B | 42 | 82 | 62 | 66 | 57 | 55 | 3 | 1 |
3D Systems Corporation | 1.3B | 57 | 80 | 46 | 38 | 45 | 45 | 4 | 1 |
IonQ, Inc. | 957.0M | 38 | 74 | 53 | 37 | 49 | 37 | 5 | 1 |
Eastman Kodak Company | 419.9M | 67 | 70 | 55 | 53 | 66 | 58 | 6 | 1 |
Apple Inc. | 2.3T | 50 | 80 | 60 | 46 | 56 | 53 | 7 | 1 |
Seagate Technology Holdings plc | 15.9B | 60 | 80 | 58 | 46 | 52 | 56 | 8 | 1 |
Western Digital Corporation | 14.9B | 60 | 77 | 55 | 68 | 62 | 59 | 9 | 1 |
NetApp, Inc. | 14.9B | 78 | 67 | 60 | 67 | 52 | 62 | 10 | 1 |
Xerox Holdings Corporation | 2.5B | 67 | 77 | 60 | 58 | 56 | 62 | 11 | 1 |
Super Micro Computer, Inc. | 2.2B | 89 | 62 | 93 | 70 | 90 | 93 | 12 | 1 |
Corsair Gaming, Inc. | 1.4B | 50 | 72 | 64 | 38 | 63 | 52 | 13 | 1 |
Stratasys Ltd. | 1.3B | 58 | 81 | 47 | 88 | 54 | 57 | 14 | 1 |
Avid Technology, Inc. | 1.2B | 52 | 82 | 43 | 45 | 59 | 49 | 15 | 1 |
Nano Dimension Ltd. | 834.0M | 96 | 85 | 59 | 48 | 60 | 82 | 16 | 1 |
Canaan Inc. | 600.4M | 76 | 62 | 88 | 67 | 83 | 81 | 17 | 1 |
CompoSecure, Inc. | 441.4M | 58 | 64 | 66 | 44 | 82 | 59 | 18 | 1 |
Coolpad Group Limited | 275.6M | 48 | 86 | 47 | 63 | 45 | 53 | 19 | 1 |
Turtle Beach Corporation | 227.4M | 39 | 80 | 69 | 86 | 67 | 67 | 20 | 1 |
Diebold Nixdorf appears likely to maintain its strong income statement metrics and momentum going forward. Diebold Nixdorf did an excellent job managing its revenue efficiency this past period. Diebold Nixdorf's revenue efficiency is 3791.1 according to the metrics in the current filing, which represents a -2.9% change from the previous report. This characteristic can affect companies in the same industry and market capitalization by up to 18.5%. Their revenue efficiency, specifically in contrast to their industry peers', should support a positive movement in the company's stock price. As a result, its revenue efficiency earned a score of 92. Also, In this filing, Diebold Nixdorf reported a return on equity (ROE) ratio of 27.5, which represents a change of 190.1%. Its return factor metrics are even more remarkable when compared to their peers. Consequently, their return factors received a grade of 73. That said, one metric, EBITDA, stood out as strongly negative. Diebold Nixdorf reported concerning EBITDA this period. At filing, EBITDA was reported as 302.8, representing -23.0% change from the previous period. This parameter coud affect companies in the same industry and market capitalization by up to 13.2%. Their EBITDA metrics are even more problematic when compared to their peers. Therefore, their EBITDA component earned a score of 42. Its income statement, therefore, earned a score of 72.
Parameter | Value | Change | Score |
---|---|---|---|
EBITDA | 302.8 | -23.0% | 42 |
Total Revenues | 3,791.1 | -2.9% | 92 |
Return on Equity | 27.5 | 190.1% | 73 |
The below chart describes Diebold Nixdorf's performance as reflected on its income statement with respect to its peers. While Diebold Nixdorf received a income statement score of 72 , the average of its peers stands on 72.0.
Name | Market Cap | Revenue Momentum | Earning Movement | Return Factors Momentum | Income Statement | mc_sort | Hidden |
---|---|---|---|---|---|---|---|
Dell Technologies Inc. | 37.2B | 68 | 65 | 82 | 69 | 0 | 1 |
HP Inc. | 36.5B | 81 | 61 | 64 | 73 | 1 | 1 |
Hewlett Packard Enterprise Company | 18.4B | 85 | 56 | 61 | 73 | 2 | 1 |
Pure Storage, Inc. | 8.0B | 46 | 97 | 96 | 71 | 3 | 1 |
3D Systems Corporation | 1.3B | 91 | 38 | 42 | 67 | 4 | 1 |
IonQ, Inc. | 957.0M | 37 | 47 | 61 | 43 | 5 | 1 |
Eastman Kodak Company | 419.9M | 75 | 61 | 49 | 68 | 6 | 1 |
Apple Inc. | 2.3T | 76 | 67 | 79 | 74 | 7 | 1 |
Seagate Technology Holdings plc | 15.9B | 83 | 69 | 90 | 79 | 8 | 1 |
Western Digital Corporation | 14.9B | 80 | 83 | 71 | 82 | 9 | 1 |
NetApp, Inc. | 14.9B | 76 | 63 | 52 | 70 | 10 | 1 |
Xerox Holdings Corporation | 2.5B | 88 | 46 | 45 | 69 | 11 | 1 |
Super Micro Computer, Inc. | 2.2B | 43 | 95 | 95 | 69 | 12 | 1 |
Corsair Gaming, Inc. | 1.4B | 97 | 41 | 39 | 71 | 13 | 1 |
Stratasys Ltd. | 1.3B | 61 | 48 | 81 | 58 | 14 | 1 |
Avid Technology, Inc. | 1.2B | 79 | 68 | 69 | 75 | 15 | 1 |
Nano Dimension Ltd. | 834.0M | 37 | 46 | 73 | 45 | 16 | 1 |
Canaan Inc. | 600.4M | 38 | 93 | 77 | 64 | 17 | 1 |
CompoSecure, Inc. | 441.4M | 51 | 69 | 53 | 58 | 18 | 1 |
Coolpad Group Limited | 275.6M | 98 | 58 | 63 | 80 | 19 | 1 |
Turtle Beach Corporation | 227.4M | 96 | 41 | 42 | 69 | 20 | 1 |
Results from Diebold Nixdorf's current financials were concerning, in two areas in particular: Net Cash Flow and Free Cash flow. Diebold Nixdorf's net cash flow metrics were -10.1 according to their current filing, which represents a -115.7% change from the previous report. Diebold Nixdorf's net cash flow metrics are especially disappointing relative to their peers. Hence, their net cash flow earned a score of 38. Also, Diebold Nixdorf's published free cash flow numbers were subpar and could mean that management has lost focus on achieving healthy growth. Diebold Nixdorf recorded free cash flow of -1.2, which represents -227.8% growth from the previous report. Companies in the same sector and market capitalization will usually be affected by up to 7.4 percent by this parameter. their free cash flow situation appears to be much weaker than their peers. Management needs to do a better job balancing cash flow, asset growth, and resources allocations in general. Disappointing results in free cash flow often lead to negative pressure in stock prices, so we rated their free cash flow with a score of 38. On the other hand, Asset Turnover, jumped out as looking rather positive. Diebold Nixdorf is doing a remarkable job of keeping its asset turnover under control. At filing, their asset turnover metrics were 1.1, representing a 1.8% change from the previous period. Companies in the same sector and market capitalization will usually be affected by up to 10.7 percent by this parameter. Their asset turnover numbers are significantly more impressive when contrasted against their peers and competitors. Therefore, its asset turnover movement earned a score of 72. The company's cash flow, Therefore, earned a score of 53.
Parameter | Value | Change | Score |
---|---|---|---|
Net Cashflow | -10.1 | -115.7% | 38 |
Capital Expenditure | -20.0 | -8.1% | 59 |
Asset Turnover | 1.1 | 1.8% | 72 |
Free Cashflow | -1.2 | -227.8% | 38 |
The below chart describes Diebold Nixdorf's performance as reflected on its cash flow with respect to its peers. While Diebold Nixdorf received a cash flow score of 53, the average of its peers stands on 70.0.
Name | Market Cap | Cashflow Momentum | Free Cashflow Growth | Capital Expenditure Growth | Assets Factors Momentum | Cash Flow | mc_sort | Hidden |
---|---|---|---|---|---|---|---|---|
Dell Technologies Inc. | 37.2B | 68 | 50 | 68 | 85 | 72 | 0 | 1 |
HP Inc. | 36.5B | 56 | 59 | 60 | 59 | 57 | 1 | 1 |
Hewlett Packard Enterprise Company | 18.4B | 77 | 52 | 62 | 71 | 66 | 2 | 1 |
Pure Storage, Inc. | 8.0B | 94 | 91 | 64 | 97 | 95 | 3 | 1 |
3D Systems Corporation | 1.3B | 58 | 40 | 61 | 65 | 55 | 4 | 1 |
IonQ, Inc. | 957.0M | 69 | 66 | 54 | 98 | 82 | 5 | 1 |
Eastman Kodak Company | 419.9M | 84 | 50 | 50 | 54 | 57 | 6 | 1 |
Apple Inc. | 2.3T | 76 | 75 | 68 | 91 | 84 | 7 | 1 |
Seagate Technology Holdings plc | 15.9B | 64 | 77 | 76 | 79 | 76 | 8 | 1 |
Western Digital Corporation | 14.9B | 65 | 82 | 54 | 70 | 70 | 9 | 1 |
NetApp, Inc. | 14.9B | 77 | 58 | 37 | 53 | 55 | 10 | 1 |
Xerox Holdings Corporation | 2.5B | 59 | 64 | 77 | 75 | 69 | 11 | 1 |
Super Micro Computer, Inc. | 2.2B | 51 | 51 | 90 | 68 | 62 | 12 | 1 |
Corsair Gaming, Inc. | 1.4B | 50 | 37 | 48 | 46 | 40 | 13 | 1 |
Stratasys Ltd. | 1.3B | 83 | 37 | 77 | 51 | 55 | 14 | 1 |
Avid Technology, Inc. | 1.2B | 58 | 59 | 45 | 94 | 74 | 15 | 1 |
Nano Dimension Ltd. | 834.0M | 69 | 70 | 74 | 55 | 70 | 16 | 1 |
Canaan Inc. | 600.4M | 67 | 69 | 73 | 46 | 57 | 17 | 1 |
CompoSecure, Inc. | 441.4M | 77 | 76 | 46 | 48 | 58 | 18 | 1 |
Coolpad Group Limited | 275.6M | 59 | 74 | 79 | 43 | 58 | 19 | 1 |
Turtle Beach Corporation | 227.4M | 87 | 38 | 87 | 51 | 60 | 20 | 1 |
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