From Yahoo Finance: 2025-04-02 09:35:00

NCR Atleos Corporation (NATL) has a bullish thesis, trading at $27.04 with trailing and forward P/E of 21.98 and 6.51 respectively. The company is a key player in the ATM industry, focusing on ATM-as-a-Service model to drive growth and improve profit margins. With Cardtronics acquisition, Atleos strengthened its ATM network to 78,000 ATMs in North America and Europe.

Atleos is transitioning to a subscription-based revenue model with ATMaaS, aiming to increase total revenue per ATM by 2.0-2.5x over its lifecycle. Management plans to expand its ATM network to 125,000 units, projecting a 6% revenue CAGR and mid-teens EBITDA growth through 2027 with tripled free cash flow. Despite market skepticism, Atleos remains undervalued and poised for growth.

Competition in the ATM industry is stable, with Atleos and Diebold Nixdorf controlling over 70% of non-APAC ATMs globally. Diebold is not aggressively pursuing ATMaaS, giving Atleos a competitive advantage. Hyosung focuses on selling ATMs rather than outsourcing services, further solidifying Atleos’ market leadership. The company is well-positioned for growth with strong revenue visibility, expanding margins, and significant upside potential.

NCR Atleos Corporation (NATL) is not among the 30 Most Popular Stocks Among Hedge Funds. While NATL has investment potential, other AI stocks may offer higher returns in a shorter timeframe. If you are seeking promising AI stocks trading at less than 5 times earnings, consider exploring other options.



Read more at Yahoo Finance: NCR Atleos Corporation (NATL): A Bull Case Theory