TELEDYNE TECHNOLOGIES INC (TDY) Stock Fundamental Analysis
NYSE:TDY - New York Stock Exchange, Inc. - US8793601050 - Common Stock - Currency: USD
Taking everything into account, TDY scores 5 out of 10 in our fundamental rating. TDY was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. While TDY has a great profitability rating, there are some minor concerns on its financial health. TDY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TDY was profitable.
TDY had a positive operating cash flow in the past year.
In the past 5 years TDY has always been profitable.
Each year in the past 5 years TDY had a positive operating cash flow.
1.2 Ratios
TDY's Return On Assets of 5.51% is fine compared to the rest of the industry. TDY outperforms 76.80% of its industry peers.
Looking at the Return On Equity, with a value of 8.36%, TDY is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.01%, TDY is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TDY is below the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 8.36% | ||
| ROIC | 7.01% |
ROA(3y)5.79%
ROA(5y)5.67%
ROE(3y)9.28%
ROE(5y)9.23%
ROIC(3y)7.12%
ROIC(5y)7.17%
1.3 Margins
TDY has a Profit Margin of 14.37%. This is amongst the best in the industry. TDY outperforms 90.40% of its industry peers.
In the last couple of years the Profit Margin of TDY has grown nicely.
The Operating Margin of TDY (18.49%) is better than 95.20% of its industry peers.
In the last couple of years the Operating Margin of TDY has grown nicely.
With a decent Gross Margin value of 42.89%, TDY is doing good in the industry, outperforming 74.40% of the companies in the same industry.
TDY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.49% | ||
| PM (TTM) | 14.37% | ||
| GM | 42.89% |
OM growth 3Y9.21%
OM growth 5Y3.4%
PM growth 3Y14.4%
PM growth 5Y2.59%
GM growth 3Y2.43%
GM growth 5Y1.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TDY is destroying value.
The number of shares outstanding for TDY has been reduced compared to 1 year ago.
The number of shares outstanding for TDY has been increased compared to 5 years ago.
Compared to 1 year ago, TDY has an improved debt to assets ratio.
2.2 Solvency
TDY has an Altman-Z score of 4.26. This indicates that TDY is financially healthy and has little risk of bankruptcy at the moment.
TDY has a better Altman-Z score (4.26) than 68.80% of its industry peers.
TDY has a debt to FCF ratio of 2.80. This is a good value and a sign of high solvency as TDY would need 2.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.80, TDY is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that TDY is not too dependend on debt financing.
TDY has a Debt to Equity ratio of 0.30. This is in the lower half of the industry: TDY underperforms 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 4.26 |
ROIC/WACC0.76
WACC9.17%
2.3 Liquidity
A Current Ratio of 2.19 indicates that TDY has no problem at all paying its short term obligations.
TDY has a Current ratio (2.19) which is in line with its industry peers.
A Quick Ratio of 1.44 indicates that TDY should not have too much problems paying its short term obligations.
TDY's Quick ratio of 1.44 is on the low side compared to the rest of the industry. TDY is outperformed by 60.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.30% over the past year.
TDY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.94% yearly.
The Revenue has been growing slightly by 0.61% in the past year.
The Revenue has been growing by 12.38% on average over the past years. This is quite good.
EPS 1Y (TTM)0.3%
EPS 3Y6.11%
EPS 5Y12.94%
EPS Q2Q%0%
Revenue 1Y (TTM)0.61%
Revenue growth 3Y7.11%
Revenue growth 5Y12.38%
Sales Q2Q%0%
3.2 Future
TDY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
The Revenue is expected to grow by 5.96% on average over the next years.
EPS Next Y9.6%
EPS Next 2Y10.24%
EPS Next 3Y9.75%
EPS Next 5YN/A
Revenue Next Year7.54%
Revenue Next 2Y6.49%
Revenue Next 3Y5.96%
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TDY is valuated quite expensively with a Price/Earnings ratio of 26.87.
Based on the Price/Earnings ratio, TDY is valued a bit cheaper than the industry average as 66.40% of the companies are valued more expensively.
TDY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
TDY is valuated rather expensively with a Price/Forward Earnings ratio of 22.11.
62.40% of the companies in the same industry are more expensive than TDY, based on the Price/Forward Earnings ratio.
TDY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 22.11 |
4.2 Price Multiples
TDY's Enterprise Value to EBITDA is on the same level as the industry average.
72.00% of the companies in the same industry are more expensive than TDY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.51 | ||
| EV/EBITDA | 19.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TDY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)2.08
EPS Next 2Y10.24%
EPS Next 3Y9.75%
5. Dividend
5.1 Amount
TDY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
530.73
+3.21 (+0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners95.84%
Inst Owner Change0%
Ins Owners0.89%
Ins Owner Change-0.81%
Market Cap24.87B
Analysts81.43
Price Target565.95 (6.64%)
Short Float %1.2%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.1%
Min EPS beat(2)-0.41%
Max EPS beat(2)4.61%
EPS beat(4)3
Avg EPS beat(4)1.66%
Min EPS beat(4)-0.41%
Max EPS beat(4)4.61%
EPS beat(8)5
Avg EPS beat(8)1.94%
EPS beat(12)9
Avg EPS beat(12)2.43%
EPS beat(16)13
Avg EPS beat(16)7.59%
Revenue beat(2)2
Avg Revenue beat(2)1.58%
Min Revenue beat(2)0.62%
Max Revenue beat(2)2.55%
Revenue beat(4)3
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)2.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.83%
Revenue beat(12)3
Avg Revenue beat(12)-0.81%
Revenue beat(16)6
Avg Revenue beat(16)-0.18%
PT rev (1m)-0.64%
PT rev (3m)-3.28%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 22.11 | ||
| P/S | 4.31 | ||
| P/FCF | 23.51 | ||
| P/OCF | 21.75 | ||
| P/B | 2.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.85 |
EPS(TTM)19.75
EY3.72%
EPS(NY)24
Fwd EY4.52%
FCF(TTM)22.57
FCFY4.25%
OCF(TTM)24.4
OCFY4.6%
SpS123.13
BVpS211.81
TBVpS-17
PEG (NY)2.8
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 8.36% | ||
| ROCE | 7.79% | ||
| ROIC | 7.01% | ||
| ROICexc | 7.26% | ||
| ROICexgc | 38.38% | ||
| OM | 18.49% | ||
| PM (TTM) | 14.37% | ||
| GM | 42.89% | ||
| FCFM | 18.33% |
ROA(3y)5.79%
ROA(5y)5.67%
ROE(3y)9.28%
ROE(5y)9.23%
ROIC(3y)7.12%
ROIC(5y)7.17%
ROICexc(3y)7.49%
ROICexc(5y)7.8%
ROICexgc(3y)46.11%
ROICexgc(5y)42.36%
ROCE(3y)7.91%
ROCE(5y)7.97%
ROICexcg growth 3Y6.58%
ROICexcg growth 5Y1.03%
ROICexc growth 3Y17.51%
ROICexc growth 5Y-9.02%
OM growth 3Y9.21%
OM growth 5Y3.4%
PM growth 3Y14.4%
PM growth 5Y2.59%
GM growth 3Y2.43%
GM growth 5Y1.79%
F-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.8 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 27.45% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.91% | ||
| Profit Quality | 127.54% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 4.26 |
F-Score6
WACC9.17%
ROIC/WACC0.76
Cap/Depr(3y)30.4%
Cap/Depr(5y)35.99%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.95%
Profit Quality(3y)88.9%
Profit Quality(5y)113.06%
High Growth Momentum
Growth
EPS 1Y (TTM)0.3%
EPS 3Y6.11%
EPS 5Y12.94%
EPS Q2Q%0%
EPS Next Y9.6%
EPS Next 2Y10.24%
EPS Next 3Y9.75%
EPS Next 5YN/A
Revenue 1Y (TTM)0.61%
Revenue growth 3Y7.11%
Revenue growth 5Y12.38%
Sales Q2Q%0%
Revenue Next Year7.54%
Revenue Next 2Y6.49%
Revenue Next 3Y5.96%
Revenue Next 5YN/A
EBIT growth 1Y3.94%
EBIT growth 3Y16.98%
EBIT growth 5Y16.2%
EBIT Next Year29.04%
EBIT Next 3Y14.42%
EBIT Next 5YN/A
FCF growth 1Y30.5%
FCF growth 3Y15.3%
FCF growth 5Y23%
OCF growth 1Y26.14%
OCF growth 3Y13.07%
OCF growth 5Y19.85%