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Is NCR Voyix (VYX) Undervalued As The Sbarro Deal Deepens Its Software And Payments Push?

Simply Wall St · 1d ago

NCR Voyix (VYX) just landed a new multi-year deal with pizza chain Sbarro, which will roll out Aloha Next and Voyix Pay across nearly 300 U.S. corporate and franchise locations.

NCR Voyix shares trade at US$7.58, with a 7 day share price return of 6.01% and a 30 day gain of 6.61%. However, the year to date share price return is down 23.12% and the 1 year total shareholder return has fallen 32.86%, suggesting recent momentum is improving after a tougher stretch.

Scan how NCR Voyix compares with other payment and software plays by reviewing our curated list of 20 high quality undiscovered gems in the same wider opportunity set.

NCR Voyix keeps signing fresh restaurant deals while the share price still sits well below past levels. Is this a strong payments and software platform that the market is pricing on the cheap today?

Most Popular Narrative: 41% Undervalued

NCR Voyix carries a fair value estimate of $12.86 from the most followed narrative, compared with the latest close at $7.58, which points to a sizeable valuation gap that hinges on how its software and payments shift plays out.

Successful transformation toward recurring SaaS and cloud-based models, evidenced by a 16% YoY increase in platform sites and a steady increase in software ARR, is improving gross and EBITDA margins while reducing hardware exposure. This is setting the stage for double-digit earnings and free cash flow growth as hardware revenue becomes a smaller portion of the mix.

See why 3 investors see NCR Voyix as 41% undervalued.

Result: Fair Value of $12.86 (UNDERVALUED)

Still, falling revenue and profit growth, along with pressure from cloud native fintech rivals, could chip away at the bullish NCR Voyix valuation story.

Find out about the key risks to this NCR Voyix narrative.

Next Steps

Mixed signals or early inflection: either way NCR Voyix deserves a closer look. Move quickly, review the full data, and weigh both the 2 key rewards and 3 important warning signs.

Looking for more NCR Voyix investment ideas?

Do not stop with NCR Voyix alone. Use focused stock lists to pressure test your thesis, compare alternatives, and avoid leaving better risk reward setups on the table.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.