TERADYNE INC (1TER.MI) Stock Fundamental Analysis
BIT:1TER - Euronext Milan - US8807701029 - Common Stock - Currency: EUR
Taking everything into account, 1TER scores 7 out of 10 in our fundamental rating. 1TER was compared to 57 industry peers in the Semiconductors & Semiconductor Equipment industry. 1TER scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1TER has a decent growth rate and is not valued too expensively. These ratings could make 1TER a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
1TER had positive earnings in the past year.
1TER had a positive operating cash flow in the past year.
1TER had positive earnings in each of the past 5 years.
1TER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1TER has a Return On Assets of 15.57%. This is in the better half of the industry: 1TER outperforms 78.95% of its industry peers.
1TER has a Return On Equity of 20.63%. This is in the better half of the industry: 1TER outperforms 73.68% of its industry peers.
1TER's Return On Invested Capital of 17.39% is amongst the best of the industry. 1TER outperforms 80.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1TER is above the industry average of 15.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.57% | ||
| ROE | 20.63% | ||
| ROIC | 17.39% |
ROA(3y)15.98%
ROA(5y)19.21%
ROE(3y)22.06%
ROE(5y)28.25%
ROIC(3y)19.67%
ROIC(5y)24.33%
1.3 Margins
Looking at the Profit Margin, with a value of 19.86%, 1TER is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
1TER's Profit Margin has been stable in the last couple of years.
1TER has a Operating Margin of 20.83%. This is in the better half of the industry: 1TER outperforms 63.16% of its industry peers.
In the last couple of years the Operating Margin of 1TER has declined.
1TER's Gross Margin of 59.36% is amongst the best of the industry. 1TER outperforms 82.46% of its industry peers.
1TER's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.83% | ||
| PM (TTM) | 19.86% | ||
| GM | 59.36% |
OM growth 3Y-15.69%
OM growth 5Y-3.67%
PM growth 3Y-11.13%
PM growth 5Y-1.14%
GM growth 3Y-0.63%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1TER is creating value.
1TER has more shares outstanding than it did 1 year ago.
1TER has less shares outstanding than it did 5 years ago.
1TER has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 11.03 indicates that 1TER is not in any danger for bankruptcy at the moment.
1TER has a better Altman-Z score (11.03) than 89.47% of its industry peers.
1TER has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.03 |
ROIC/WACC1.71
WACC10.14%
2.3 Liquidity
1TER has a Current Ratio of 2.70. This indicates that 1TER is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.70, 1TER is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1TER has a Quick Ratio of 2.17. This indicates that 1TER is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of 1TER (2.17) is better than 82.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.72% over the past year.
Measured over the past 5 years, 1TER shows a small growth in Earnings Per Share. The EPS has been growing by 2.47% on average per year.
1TER shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.30%.
Measured over the past years, 1TER shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
EPS 1Y (TTM)19.72%
EPS 3Y-18.64%
EPS 5Y2.47%
EPS Q2Q%47.06%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y-8.68%
Revenue growth 5Y4.21%
Sales Q2Q%14.31%
3.2 Future
Based on estimates for the next years, 1TER will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.66% on average per year.
The Revenue is expected to grow by 10.63% on average over the next years. This is quite good.
EPS Next Y0.4%
EPS Next 2Y19.41%
EPS Next 3Y21.06%
EPS Next 5Y18.66%
Revenue Next Year3.17%
Revenue Next 2Y10.63%
Revenue Next 3Y12.13%
Revenue Next 5Y10.63%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.54, the valuation of 1TER can be described as rather expensive.
1TER's Price/Earnings ratio is in line with the industry average.
1TER's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.92.
A Price/Forward Earnings ratio of 18.52 indicates a rather expensive valuation of 1TER.
1TER's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.46. 1TER is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1TER is on the same level as its industry peers.
1TER's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1TER is cheaper than 82.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.41 | ||
| EV/EBITDA | 18.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1TER may justify a higher PE ratio.
1TER's earnings are expected to grow with 21.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)60.73
PEG (5Y)9.93
EPS Next 2Y19.41%
EPS Next 3Y21.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, 1TER is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.28, 1TER has a dividend in line with its industry peers.
With a Dividend Yield of 0.56, 1TER pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
On average, the dividend of 1TER grows each year by 6.27%, which is quite nice.
Dividend Growth(5Y)6.27%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
13.42% of the earnings are spent on dividend by 1TER. This is a low number and sustainable payout ratio.
The dividend of 1TER is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.42%
EPS Next 2Y19.41%
EPS Next 3Y21.06%
BIT:1TER (6/20/2025, 7:00:00 PM)
74.1
+74.1 (+Infinity%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.63%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap11.89B
Analysts72.38
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend0.42
Dividend Growth(5Y)6.27%
DP13.42%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.72%
Min EPS beat(2)3.4%
Max EPS beat(2)20.03%
EPS beat(4)4
Avg EPS beat(4)11.96%
Min EPS beat(4)3.4%
Max EPS beat(4)20.03%
EPS beat(8)8
Avg EPS beat(8)17.43%
EPS beat(12)12
Avg EPS beat(12)16.78%
EPS beat(16)16
Avg EPS beat(16)14.62%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)0.62%
Revenue beat(4)3
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-0.24%
Max Revenue beat(4)3.06%
Revenue beat(8)6
Avg Revenue beat(8)1.67%
Revenue beat(12)10
Avg Revenue beat(12)1.68%
Revenue beat(16)14
Avg Revenue beat(16)1.5%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 18.52 | ||
| P/S | 4.69 | ||
| P/FCF | 22.41 | ||
| P/OCF | 16.5 | ||
| P/B | 4.87 | ||
| P/tB | 5.75 | ||
| EV/EBITDA | 18.01 |
EPS(TTM)3.02
EY4.08%
EPS(NY)4
Fwd EY5.4%
FCF(TTM)3.31
FCFY4.46%
OCF(TTM)4.49
OCFY6.06%
SpS15.79
BVpS15.2
TBVpS12.88
PEG (NY)60.73
PEG (5Y)9.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.57% | ||
| ROE | 20.63% | ||
| ROCE | 19.8% | ||
| ROIC | 17.39% | ||
| ROICexc | 20.85% | ||
| ROICexgc | 25.05% | ||
| OM | 20.83% | ||
| PM (TTM) | 19.86% | ||
| GM | 59.36% | ||
| FCFM | 20.94% |
ROA(3y)15.98%
ROA(5y)19.21%
ROE(3y)22.06%
ROE(5y)28.25%
ROIC(3y)19.67%
ROIC(5y)24.33%
ROICexc(3y)27.48%
ROICexc(5y)40.08%
ROICexgc(3y)35.32%
ROICexgc(5y)56.65%
ROCE(3y)22.4%
ROCE(5y)27.7%
ROICexcg growth 3Y-36.99%
ROICexcg growth 5Y-17.13%
ROICexc growth 3Y-32.99%
ROICexc growth 5Y-11.32%
OM growth 3Y-15.69%
OM growth 5Y-3.67%
PM growth 3Y-11.13%
PM growth 5Y-1.14%
GM growth 3Y-0.63%
GM growth 5Y0.03%
F-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 178.88% | ||
| Cap/Sales | 7.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 113.65% | ||
| Profit Quality | 105.44% | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 11.03 |
F-Score8
WACC10.14%
ROIC/WACC1.71
Cap/Depr(3y)152.3%
Cap/Depr(5y)141.7%
Cap/Sales(3y)6.05%
Cap/Sales(5y)5.53%
Profit Quality(3y)80.07%
Profit Quality(5y)84.52%
High Growth Momentum
Growth
EPS 1Y (TTM)19.72%
EPS 3Y-18.64%
EPS 5Y2.47%
EPS Q2Q%47.06%
EPS Next Y0.4%
EPS Next 2Y19.41%
EPS Next 3Y21.06%
EPS Next 5Y18.66%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y-8.68%
Revenue growth 5Y4.21%
Sales Q2Q%14.31%
Revenue Next Year3.17%
Revenue Next 2Y10.63%
Revenue Next 3Y12.13%
Revenue Next 5Y10.63%
EBIT growth 1Y18.78%
EBIT growth 3Y-23.01%
EBIT growth 5Y0.38%
EBIT Next Year24.02%
EBIT Next 3Y24.74%
EBIT Next 5Y22.87%
FCF growth 1Y41.79%
FCF growth 3Y-21.12%
FCF growth 5Y1.31%
OCF growth 1Y40.14%
OCF growth 3Y-15.1%
OCF growth 5Y3.04%