Is TELEDYNE TECHNOLOGIES INC (NYSE:TDY) a Strong Candidate for Quality Investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TELEDYNE TECHNOLOGIES INC (NYSE:TDY) is suited for quality investing. Investors should of course do their own research, but we spotted TELEDYNE TECHNOLOGIES INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why TDY Holds Appeal for Quality Investors.

• Over the past 5 years, TDY has experienced impressive revenue growth, with 12.38% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 38.38%, TDY demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a favorable Debt/Free Cash Flow Ratio of 2.8, TDY showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• TDY exhibits impressive Profit Quality (5-year) with a 113.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• TDY has consistently achieved strong EBIT growth over the past 5 years, with a 16.2% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• TDY demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of TDY?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

TDY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. TDY scores excellent on profitability, but there are some minor concerns on its financial health. TDY has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of TDY

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.