Back to top

Analyst Blog

The ATM manufacturer NCR Corporation (NCR - Analyst Report) is extending its network of channel partners. The company recently announced that independent retailers now have access to NCR point-of-sale (POS). The POS provides maintenance services to the end user through a network of distributors.

In this particular offering, channel partners can serve as a one-stop shop offering customized solutions related to hardware-software-networking to independent retail customers. Ultimately this leads to improved recurring revenue streams through improved transaction efficiency and higher customer demand for the small retailers. 

Apart from improving its channel partner efficiency, the company also introduced a new video teller service into its Canadian ATMs. This particular service enables customers to have a live discussion with the remote teller at the ATM. Therefore the technology enables consumers to access branch services after the designated office hours.

The Canadian financial institution FirstOntario Credit Union is looking to implement new solutions to improve their productivity. Sensing this, NCR is coming up with new technology to encash on the situation.

The company is aggressively working with banks, financial institutions and credit committees in Canada to improve their efficiency and end-user experience. This is a mutually beneficial association as both NCR and the banks are benefiting in the same way.

Although the company is growing, its sales tend to be seasonal, with strong sales in the fourth quarter followed by weakness in the first. Such seasonal nature of the business leads to fluctuation in cash flows and makes it difficult for the company to predict its working capital requirements accurately.

Moreover, challenges faced by the global financial services and retail industries, the successful integration of Radiant and potential investor concerns regarding pension expenses are other headwinds.

Although the restructuring initiatives and new business strategies have started impacting results, we believe that the company should reduce its debt balance to further improve its operating performance, and must come up with new strategies to compete against Diebold Inc. (DBD - Snapshot Report).

The company has a Zacks #3 Rank, implying a short-term Hold rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%