NCR doing strategic review because value is not reflected in stock price – CEO

NCR Corp. is undertaking a strategic review due to the fact that its executions and improvements over the past years are currently not reflected in its valuation, CEO Michael Hayford said during a Feb. 8 earnings call.

"[W]e've executed for three years. We've hit every quarter for three years. We've improved our product. We've improved our strategy. We've delivered our products to the market. We have a customer set. We've grown our business and we're pretty excited about where we're going in the future. But yes, we look at where we trade and we're very disappointed with the value," Hayford said, according to a transcript.

Under the process, the company's board will evaluate several strategic alternatives, which may include disposition of a material business or assets; a spinoff, merger or sale of the company; other structural changes; changes to branding or geographic footprint; or other transactions or alternatives.

For the review, NCR plans to consider various possible actions, structures and solutions, and will be "very open-minded," Hayford noted.

During the call, Hayford named key priorities of NCR, the first one being the acceleration of growth as it leverages its software and payments platform to increase the share of wallets. The company established its new five-year targets, called 80/15/1, which means it will strive to generate 80% of its revenue as recurring, expects to deliver 15% annual non-GAAP diluted EPS growth each year, and aspires to generate $1 billion of free cash flow in 2026.

NCR's stock was up 12.36% in morning trading as of 10:55 a.m. ET.