NCR Atleos (NATL)
We’re firm believers in NCR Atleos. Its eye-popping 82% annualized EPS growth over the last two years has significantly outpaced its peers.― StockStory Analyst Team
1. News
2. Summary
Why We Like NCR Atleos
Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE:NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.
- Additional sales over the last two years increased its profitability as the 82% annual growth in its earnings per share outpaced its revenue
- The stock is a timely buy because it’s trading at a reasonable price relative to its growth prospects
We’re optimistic about NCR Atleos. The price looks reasonable when considering its quality, so this might be a favorable time to invest in some shares.
Why Is Now The Time To Buy NCR Atleos?
NCR Atleos’s stock price of $37.43 implies a valuation ratio of 7.8x forward P/E. This multiple is cheap, and we think the stock is a bargain considering its quality characteristics.
We at StockStory love when high-quality companies go on sale because it enables investors to profit from earnings growth and a potential re-rating - the coveted “double play”.
3. NCR Atleos (NATL) Research Report: Q3 CY2025 Update
Financial technology company NCR Atleos (NYSE:NATL) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 4% year on year to $1.12 billion. Its GAAP profit of $0.34 per share was 51.4% below analysts’ consensus estimates.
NCR Atleos (NATL) Q3 CY2025 Highlights:
Company Overview
Spun off from NCR Voyix in 2023 to focus exclusively on self-service banking technology, NCR Atleos (NYSE:NATL) provides self-directed banking solutions including ATM and interactive teller machine technology, software, services, and a surcharge-free ATM network for financial institutions and retailers.
NCR Atleos operates at the intersection of banking and technology, enabling financial institutions to transform traditional branch models into more efficient self-service experiences. The company's comprehensive platform includes hardware (ATMs and ITMs), software, managed services, and access to its Allpoint network—the largest retail surcharge-free ATM network in the United States with approximately 83,000 locations.
The company serves two primary customer groups. For financial institutions, NCR Atleos provides the technology and services to offer their customers convenient banking without requiring full-service branches. Its interactive teller machines (ITMs) allow remote bank employees to assist customers via video with complex transactions like account opening and loan applications. For retailers, the company's solutions create in-store banking destinations that drive foot traffic and reduce labor costs associated with financial service desks.
NCR Atleos generates revenue through multiple streams: selling hardware, licensing software on subscription models, providing managed services (including its comprehensive "ATM as a Service" offering), collecting transaction fees, and through branding arrangements where financial institutions pay to place their logos on company-owned ATMs. This diversified revenue model includes significant recurring components through long-term contracts.
The company's strategy focuses on increasing transaction volumes at existing locations while expanding its footprint globally. It's also transitioning toward more software-led solutions, with its Digital First ATM software platform enabling modern user experiences across both proprietary and third-party hardware. This cloud-based platform includes microservices and APIs that integrate with customers' systems, allowing NCR Atleos to earn a greater proportion of recurring revenues.
4. Diversified Financial Services
Diversified financial services encompass specialized offerings outside traditional categories. These firms benefit from identifying niche market opportunities, developing tailored financial products, and often facing less direct competition. Challenges include scale limitations, regulatory classification uncertainties, and the need to continuously innovate to maintain market differentiation against larger competitors expanding their offerings.
NCR Atleos competes with global ATM software, services, and hardware providers including Fiserv (NASDAQ:FISV), Euronet Worldwide (NASDAQ:EEFT), Diebold Nixdorf (OTC:DDBDF), as well as Cord Financial, Brinks (NYSE:BCO), and Hyosung.
5. Revenue Growth
A company’s top-line performance can indicate its business quality. Rapid growth can signal it’s benefiting from an innovative new product or burgeoning market trend. NCR Atleos’s annualized revenue growth rate of 1.8% over the last two years was sluggish for a financials business.
This quarter, NCR Atleos reported modest year-on-year revenue growth of 4% but beat Wall Street’s estimates by 0.6%.
6. Pre-Tax Profit Margin
Revenue growth is one major determinant of business quality, and the efficiency of operations is another. For Diversified Financial Services companies, we look at pre-tax profit rather than the operating margin that defines sectors such as consumer, tech, and industrials.
The pre-tax profit margin includes interest because it's central to how financial institutions generate revenue and manage costs. Tax considerations are excluded since they represent government policy rather than operational performance, giving investors a clearer view of business fundamentals.
Over the last two years, NCR Atleos’s pre-tax profit margin couldn’t build momentum, hanging around 4.5%.
NCR Atleos’s pre-tax profit margin came in at 2.9% this quarter. This result was in line with the same quarter last year.
7. Balance Sheet Risk
The debt-to-equity ratio is a widely used measure to assess a company's balance sheet health. A higher ratio means that a business aggressively financed its growth with debt. This can result in higher earnings (if the borrowed funds are invested profitably) but also increases risk.
If debt levels are too high, there could be difficulties in meeting obligations, especially during economic downturns or periods of rising interest rates if the debt has variable-rate payments.
NCR Atleos currently has $2.87 billion of debt and $331 million of shareholder's equity on its balance sheet, and over the past four quarters, has averaged a debt-to-equity ratio of 10×. We think this is dangerous - for a financials business, anything above 3.5× raises red flags.
8. Key Takeaways from NCR Atleos’s Q3 Results
We struggled to find many positives in these results. Overall, this quarter could have been better. The stock traded down 8.4% to $34.71 immediately following the results.
9. Is Now The Time To Buy NCR Atleos?
Updated: December 3, 2025 at 11:36 PM EST
Before deciding whether to buy NCR Atleos or pass, we urge investors to consider business quality, valuation, and the latest quarterly results.
NCR Atleos is a rock-solid business worth owning. Although the company’s declining pre-tax profit margin shows the business has become less efficient, its astounding EPS growth over the last two years shows its profits are trickling down to shareholders.
NCR Atleos’s P/E ratio based on the next 12 months is 7.8x. Analyzing the financials landscape today, NCR Atleos’s positive attributes shine bright. We like the stock at this bargain price.
Wall Street analysts have a consensus one-year price target of $45.17 on the company (compared to the current share price of $37.43), implying they see 20.7% upside in buying NCR Atleos in the short term.