NCR Atleos (NATL, Financial) has formed a strategic alliance to expand its Allpoint Network across more than 4,000 7-Eleven stores nationwide. This significant partnership enables customers to access surcharge-free cash withdrawals and deposits at these locations, enhancing convenience and potentially increasing foot traffic in 7-Eleven outlets.
This collaboration is part of the broader efforts by FCTI, which manages over 8,400 ATMs for 7-Eleven, to drive store sales and customer visits through financial services. The integration aligns with FCTI's "ATM as a Destination" initiative, aiming to enhance customer experience and bring more visitors to 7-Eleven stores.
Moreover, Allpoint Network member issuers will continue to have access at an additional 3,000-plus Speedway-branded locations, ensuring comprehensive coverage and convenience for users of the network.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for NCR Atleos Corp (NATL, Financial) is $42.40 with a high estimate of $60.00 and a low estimate of $29.00. The average target implies an upside of 63.08% from the current price of $26.00. More detailed estimate data can be found on the NCR Atleos Corp (NATL) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, NCR Atleos Corp's (NATL, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
NATL Key Business Developments
Release Date: March 04, 2025
- Revenue: $4.3 billion for full year 2024, 3% year-over-year growth.
- Adjusted EPS: $3.22 for full year 2024.
- Adjusted Free Cash Flow: $242 million for full year 2024.
- Adjusted EBITDA: $781 million for full year 2024, 7% year-over-year growth.
- Adjusted EBITDA Margin: 18.1% for full year 2024, expanded 60 basis points year-over-year.
- Recurring Revenue: 73% of total revenue, with 5% growth in recurring revenues.
- Self-Service Banking Revenue: $718 million in Q4 2024, 8% year-over-year growth.
- Network Segment Revenue: $317 million in Q4 2024, down 2% year-over-year.
- ATM as a Service Revenue Growth: 27% for full year 2024.
- ATM Network Units: Approximately 78,000 units at year-end 2024.
- Net Leverage: Reduced to 3.2 times at year-end 2024 from 3.7 times at the end of 2023.
- 2025 Revenue Growth Outlook: 3% to 6% on a constant currency basis for core revenues.
- 2025 Adjusted EBITDA Growth Outlook: 7% to 10% on a constant currency basis.
- 2025 Free Cash Flow Outlook: $260 million to $300 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NCR Atleos Corp (NATL, Financial) reported a successful 2024 with over $4.3 billion in revenue, exceeding financial targets.
- The company achieved a 7% year-over-year growth in adjusted EBITDA, reflecting strong operational performance.
- Recurring revenue increased to 73%, highlighting a shift towards more predictable service-oriented revenue streams.
- The ATM as a service business saw a 27% revenue growth, with expectations to grow over 40% in 2025.
- NCR Atleos Corp (NATL) reduced its net leverage from 3.7 times to 3.2 times by the end of 2024, indicating improved financial health.
Negative Points
- Despite strong performance, NCR Atleos Corp (NATL) remains undervalued relative to its peers, with low equity investor engagement.
- The company faces a 2% FX headwind on reported results, impacting revenue growth.
- Interest expense was $309 million, a significant cost due to debt raised during the NCR split.
- The expiration of favorable hedges will lead to higher vault cash costs, affecting EBITDA margins in 2025.
- The company is still working on implementing off-balance sheet financing solutions for ATM as a service hardware.
