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TERADYNE INC (TER) Stock Fundamental Analysis

NASDAQ:TER - Nasdaq - US8807701029 - Common Stock - Currency: USD

93.06  -1.12 (-1.19%)

After market: 92.85 -0.21 (-0.23%)

Fundamental Rating

7

Overall TER gets a fundamental rating of 7 out of 10. We evaluated TER against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. TER has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TER is not valued too expensively and it also shows a decent growth rate. This makes TER very considerable for quality investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year TER was profitable.
TER had a positive operating cash flow in the past year.
TER had positive earnings in each of the past 5 years.
TER had a positive operating cash flow in each of the past 5 years.
TER Yearly Net Income VS EBIT VS OCF VS FCFTER Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

1.2 Ratios

The Return On Assets of TER (15.57%) is better than 89.09% of its industry peers.
TER has a Return On Equity of 20.63%. This is amongst the best in the industry. TER outperforms 86.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.39%, TER belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
TER had an Average Return On Invested Capital over the past 3 years of 19.67%. This is significantly above the industry average of 10.58%.
Industry RankSector 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%
TER Yearly ROA, ROE, ROICTER Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

With an excellent Profit Margin value of 19.86%, TER belongs to the best of the industry, outperforming 82.73% of the companies in the same industry.
TER's Profit Margin has been stable in the last couple of years.
TER has a Operating Margin of 20.83%. This is in the better half of the industry: TER outperforms 80.00% of its industry peers.
TER's Operating Margin has declined in the last couple of years.
TER has a better Gross Margin (59.36%) than 85.45% of its industry peers.
In the last couple of years the Gross Margin of TER has remained more or less at the same level.
Industry RankSector 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%
TER Yearly Profit, Operating, Gross MarginsTER Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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8

2. Health

2.1 Basic Checks

TER has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TER has been increased compared to 1 year ago.
TER has less shares outstanding than it did 5 years ago.
TER has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
TER Yearly Shares OutstandingTER Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
TER Yearly Total Debt VS Total AssetsTER Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

TER has an Altman-Z score of 11.88. This indicates that TER is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TER (11.88) is better than 82.73% of its industry peers.
There is no outstanding debt for TER. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 11.88
ROIC/WACC1.72
WACC10.09%
TER Yearly LT Debt VS Equity VS FCFTER Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

TER has a Current Ratio of 2.70. This indicates that TER is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.70, TER is in line with its industry, outperforming 45.45% of the companies in the same industry.
TER has a Quick Ratio of 2.17. This indicates that TER is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.17, TER perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.7
Quick Ratio 2.17
TER Yearly Current Assets VS Current LiabilitesTER Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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6

3. Growth

3.1 Past

TER shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.72%, which is quite good.
The Earnings Per Share has been growing slightly by 2.47% on average over the past years.
The Revenue has grown by 9.30% in the past year. This is quite good.
The Revenue has been growing slightly by 4.21% on average over the past years.
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

The Earnings Per Share is expected to grow by 18.66% on average over the next years. This is quite good.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TER Yearly Revenue VS EstimatesTER Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B
TER Yearly EPS VS EstimatesTER Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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5

4. Valuation

4.1 Price/Earnings Ratio

TER is valuated quite expensively with a Price/Earnings ratio of 26.90.
TER's Price/Earnings ratio is a bit cheaper when compared to the industry. TER is cheaper than 70.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. TER is around the same levels.
With a Price/Forward Earnings ratio of 20.27, TER is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TER is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
TER is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.9
Fwd PE 20.27
TER Price Earnings VS Forward Price EarningsTER Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TER is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
79.09% of the companies in the same industry are more expensive than TER, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 24.54
EV/EBITDA 19.78
TER Per share dataTER EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TER does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TER may justify a higher PE ratio.
TER's earnings are expected to grow with 21.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)66.57
PEG (5Y)10.88
EPS Next 2Y19.41%
EPS Next 3Y21.06%

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6

5. Dividend

5.1 Amount

TER has a yearly dividend return of 0.53%, which is pretty low.
TER's Dividend Yield is a higher than the industry average which is at 2.28.
Compared to an average S&P500 Dividend Yield of 2.42, TER's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.53%

5.2 History

On average, the dividend of TER grows each year by 6.27%, which is quite nice.
TER has been paying a dividend for at least 10 years, so it has a reliable track record.
TER has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.27%
Div Incr Years1
Div Non Decr Years10
TER Yearly Dividends per shareTER Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

TER pays out 13.42% of its income as dividend. This is a sustainable payout ratio.
The dividend of TER is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.42%
EPS Next 2Y19.41%
EPS Next 3Y21.06%
TER Yearly Income VS Free CF VS DividendTER Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B
TER Dividend Payout.TER Dividend Payout, showing the Payout Ratio.TER Dividend Payout.PayoutRetained Earnings

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TERADYNE INC

NASDAQ:TER (7/3/2025, 8:12:20 PM)

After market: 92.85 -0.21 (-0.23%)

93.06

-1.12 (-1.19%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)04-28 2025-04-28/amc
Earnings (Next)07-22 2025-07-22/amc
Inst Owners99.63%
Inst Owner Change-1.61%
Ins Owners0.18%
Ins Owner Change3.49%
Market Cap14.93B
Analysts72.38
Price Target99.97 (7.43%)
Short Float %3.98%
Short Ratio2.03
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
Yearly Dividend0.49
Dividend Growth(5Y)6.27%
DP13.42%
Div Incr Years1
Div Non Decr Years10
Ex-Date05-22 2025-05-22 (0.12)
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)-4.18%
PT rev (3m)-15.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.19%
Valuation
Industry RankSector Rank
PE 26.9
Fwd PE 20.27
P/S 5.14
P/FCF 24.54
P/OCF 18.06
P/B 5.34
P/tB 6.3
EV/EBITDA 19.78
EPS(TTM)3.46
EY3.72%
EPS(NY)4.59
Fwd EY4.93%
FCF(TTM)3.79
FCFY4.08%
OCF(TTM)5.15
OCFY5.54%
SpS18.11
BVpS17.44
TBVpS14.78
PEG (NY)66.57
PEG (5Y)10.88
Profitability
Industry RankSector 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 RankSector 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 11.88
F-Score8
WACC10.09%
ROIC/WACC1.72
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%