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NCR Leads the POS Market According to Research Firm RBR

Zacks Equity Research

Given its increasing base of customers and satisfactory performances, global research company RBR recently acknowledged NCR Corporation NCR as the world’s #1 point-of-sale (POS) software provider for the retail and hospitality industries.

Per the latest report by RBR Research, the POS market approximately had 1,000 projects in 2016 by more than 40 sellers. This report also stated that NCR, with a market share of 18%, was way ahead of its peers which had more than 6.6 million POS installations globally in these dynamic industries.

According to Mark Benjamin, president and COO, NCR Corporation, “Our point-of-sale software has actually become a platform of sale that enables our customers to embrace mobile and cloud capabilities, transform their operations and redefine the customer experience.”

NCR Grows in POS

The demand for NCR’s POS solution is increasing in retailers and hospitality industries as it facilitates the automation of bill payment and accounting. As a result, managers get ample time for customer interaction, leading to increased productivity. NCR strengthened its position in the POS market through the acquisition of Radiant Systems in Aug 2011.

Over time, the company has made associations with several companies including PayPal to drive demand for its POS solutions. Also, NCR has won a number of deals for its POS solutions. The company’s long list of customers includes Dalton Castano, Army and Air Force Exchange Service (AAFES), Maxeda DIY Group, and No.1 People’s Department Store of Zhangjiagang City Co.

Also, the company’s cloud-based POS system and technology has been implemented by Jamie’s Italian and Waffle House, Speedway and Iper, La grande. We believe that NCR’s commitment to protect the trust and integrity of the companies has been inspiring retailers and a host of other companies to opt for its services.

According to Global Market Insights, the global market size for POS terminals will reach $103.52 billion by 2023. The report also says that POS terminals market size, which at the end of 2015 was 32 million units, will reach 126 million units by 2023, reflecting a CAGR of 18.3% through the period.

Another research firm stated that the global POS terminal market, valued at $42.14 billion in 2015, is expected to reach $113.27 billion by 2024. Thus, NCR with its varied offerings of POS terminals and solutions should be able to capitalize on these growth opportunities.

Other Positives for NCR

Over the last one year, the stock has surged a whopping 112.4% and crushed the Zacks categorized Computer-Integrated Systems industry, which increased just 38.6%.

The company, with a VGM Score of ‘A,’ posted an average positive earnings surprise of 9.77% in the trailing four quarters and has a market cap of over $5 billion.

The company has also been the global leader in self-service ATMs for several years in terms of market share. The company remains the largest supplier of ATM machines in Asia-Pacific and North America while maintaining its leadership in the Asian and European markets. By 2020, RBR Research expects India to install base similar to the size of the U.S., trailing only China. Currently, India is the world’s fourth-largest ATM market, with China, the U.S. and Japan holding the first three spots. This creates huge opportunities for companies like NCR.

Going forward, continuous product launches, growing popularity of its self-service offerings and synergies from acquisitions are the catalysts. Continuous deal wins also drive growth.

Risks Remain

However, similar offerings from the likes of Diebold Corp. DBD and International Business Machines Corp. IBM and a high debt burden remain concerns.

Currently, NCR has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A better-ranked stock in the technology sector is Marvell Technology Group Ltd. MRVL, sporting a Zacks Rank #1.

Marvell has long-term expected earnings per share growth rate of 12.33%.

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