Seeking Alpha: NCR Corp. Still Undervalued, But Not Helping Its Cause

When I last wrote on NCR (NCR) in December of 2013, I thought that NCR's acquisition of Digital Insight was a good move, but that ongoing skepticism about the company's pension status, FCF conversion, and ability to drive synergies across the business would likely keep the stock from realizing its significant upside over the next year.

With the shares basically flat in the five months since (and likely down once trading opens on Wednesday), I can't say I'm disappointed or surprised with the company's performance. The key to the NCR story remains its comprehensive hardware and software toolbox for financial institutions, its growth prospects within the retail and hospitality industries, and its conversion toward higher-margin software sales. NCR still gets the opposite of the benefit of the doubt from the Street and still offers attractive upside from these levels, though management has to start generating better FCF conversion and guidance to realize that upside.

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NCR Corp. Still Undervalued, But Not Helping Its Cause