Updating Diebold Inc. and NCR Corp.

Article Excerpt

DIEBOLD INC. $23 (www.dieboldnixdorf.com) completed its purchase of German ATM (automated teller machine) maker Wincor Nixdorf AG in August 2016 for $1.8 billion in cash and shares. The purchase makes Diebold the world’s largest maker of ATMs, with roughly 35% of the global market. The company had to borrow most of the funds it needed to buy Wincor. That pushed up its long-term debt to $2.3 billion (as of June 30, 2016), or 1.4 times its $1.7 billion market cap (the value of all outstanding shares). However, the cost savings from the deal will give Diebold more cash to pay down its debt. It is also conserving cash by cutting its quarterly dividend 65.2%, to $0.10 a share from $0.2975. The new annual rate yields 1.7%. Buy. NCR CORP. $35 (www.ncr.com) is the world’s second-largest ATM maker, after Diebold (see above). It earned $0.87 a share in the third quarter of 2016, up 11.5% from $0.78 a year earlier. Revenue rose…

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