Investors will benefit from breakup

Article Excerpt

NCR CORP. $23 is still a buy for aggressive investors. The company (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 137.4 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.4; No dividend paid; TSINetwork Rating: Average; www.ncr.com) plans to separate into two publicly traded firms. The automated teller machines (ATM) operations will have annual revenue of $3.8 billion and gross earnings of $700 million. What’s more, recurring revenue from contracts to service those machines will supply 67% of the new firm’s total revenue. The remaining business makes cash registers, self-serve checkouts and kiosks for retail stores, restaurants and hotels. It will have annual revenue of $4.0 billion and gross earnings of $600 million. Recurring contracts will supply 55% of its revenue. NCR has not yet announced the details of the split, but expects to complete the transaction by the end of 2023. NCR is a buy. buy…