158.91 USD
+3.01 (+1.93%)
158.91 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to TER. TER was compared to 112 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 has a decent growth rate and is not valued too expensively. With these ratings, TER could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year TER was profitable.
TER had a positive operating cash flow in the past year.
Each year in the past 5 years TER has been profitable.
Each year in the past 5 years TER had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TER (11.18%) is better than 83.93% of its industry peers.
TER's Return On Equity of 16.31% is amongst the best of the industry. TER outperforms 83.04% of its industry peers.
TER has a Return On Invested Capital of 14.93%. This is amongst the best in the industry. TER outperforms 88.39% of its industry peers.
TER had an Average Return On Invested Capital over the past 3 years of 19.67%. This is significantly above the industry average of 10.84%.
The 3 year average ROIC (19.67%) for TER is well above the current ROIC(14.93%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 16.31% | ||
| ROIC | 14.93% |
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 15.49%, TER is in the better half of the industry, outperforming 75.89% of the companies in the same industry.
TER's Profit Margin has been stable in the last couple of years.
TER has a better Operating Margin (18.84%) than 78.57% of its industry peers.
TER's Operating Margin has declined in the last couple of years.
The Gross Margin of TER (58.92%) is better than 83.04% of its industry peers.
TER's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.84% | ||
| PM (TTM) | 15.49% | ||
| GM | 58.92% |
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 TER is creating value.
The number of shares outstanding for TER has been increased compared to 1 year ago.
The number of shares outstanding for TER has been reduced compared to 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.
2.2 Solvency
An Altman-Z score of 13.58 indicates that TER is not in any danger for bankruptcy at the moment.
The Altman-Z score of TER (13.58) is better than 83.04% of its industry peers.
The Debt to FCF ratio of TER is 0.44, which is an excellent value as it means it would take TER, only 0.44 years of fcf income to pay off all of its debts.
TER has a better Debt to FCF ratio (0.44) than 81.25% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that TER is not too dependend on debt financing.
TER has a Debt to Equity ratio (0.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 13.58 |
ROIC/WACC1.41
WACC10.61%
2.3 Liquidity
TER has a Current Ratio of 1.76. This is a normal value and indicates that TER is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.76, TER is not doing good in the industry: 79.46% of the companies in the same industry are doing better.
TER has a Quick Ratio of 1.39. This is a normal value and indicates that TER is financially healthy and should not expect problems in meeting its short term obligations.
TER has a Quick ratio of 1.39. This is in the lower half of the industry: TER underperforms 75.89% of its industry peers.
TER does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
TER shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.96%.
TER shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.47% yearly.
TER shows a small growth in Revenue. In the last year, the Revenue has grown by 4.46%.
Measured over the past years, TER shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
EPS 1Y (TTM)1.96%
EPS 3Y-18.64%
EPS 5Y2.47%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)4.46%
Revenue growth 3Y-8.68%
Revenue growth 5Y4.21%
Sales Q2Q%4.33%
3.2 Future
The Earnings Per Share is expected to grow by 22.65% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.60% on average over the next years. This is quite good.
EPS Next Y7.8%
EPS Next 2Y25.62%
EPS Next 3Y25.41%
EPS Next 5Y22.65%
Revenue Next Year8.04%
Revenue Next 2Y14.91%
Revenue Next 3Y14.38%
Revenue Next 5Y12.6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 50.93, TER can be considered very expensive at the moment.
TER's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.45. TER is valued rather expensively when compared to this.
TER is valuated quite expensively with a Price/Forward Earnings ratio of 31.27.
TER's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, TER is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.93 | ||
| Fwd PE | 31.27 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TER.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TER indicates a somewhat cheap valuation: TER is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.33 | ||
| EV/EBITDA | 36.96 |
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.
A more expensive valuation may be justified as TER's earnings are expected to grow with 25.41% in the coming years.
PEG (NY)6.53
PEG (5Y)20.61
EPS Next 2Y25.62%
EPS Next 3Y25.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, TER is not a good candidate for dividend investing.
TER's Dividend Yield is a higher than the industry average which is at 2.22.
Compared to an average S&P500 Dividend Yield of 2.45, TER's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
The dividend of TER is nicely growing with an annual growth rate of 6.27%!
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
5.3 Sustainability
TER pays out 17.39% 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.
DP17.39%
EPS Next 2Y25.62%
EPS Next 3Y25.41%
158.91
+3.01 (+1.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.22%
Inst Owner Change1.13%
Ins Owners0.18%
Ins Owner Change1.01%
Market Cap25.28B
Revenue(TTM)2.86B
Net Income(TTM)443.08M
Analysts74.55
Price Target187.41 (17.93%)
Short Float %5.53%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend0.49
Dividend Growth(5Y)6.27%
DP17.39%
Div Incr Years1
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.89%
Min EPS beat(2)4.95%
Max EPS beat(2)6.84%
EPS beat(4)4
Avg EPS beat(4)8.81%
Min EPS beat(4)3.4%
Max EPS beat(4)20.03%
EPS beat(8)8
Avg EPS beat(8)15.49%
EPS beat(12)12
Avg EPS beat(12)16.55%
EPS beat(16)16
Avg EPS beat(16)14.27%
Revenue beat(2)1
Avg Revenue beat(2)0.85%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)2.4%
Revenue beat(4)2
Avg Revenue beat(4)0.52%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)2.4%
Revenue beat(8)5
Avg Revenue beat(8)1.29%
Revenue beat(12)9
Avg Revenue beat(12)1.6%
Revenue beat(16)13
Avg Revenue beat(16)1.48%
PT rev (1m)15.14%
PT rev (3m)21.35%
EPS NQ rev (1m)31.35%
EPS NQ rev (3m)32.48%
EPS NY rev (1m)9.86%
EPS NY rev (3m)7.31%
Revenue NQ rev (1m)17.71%
Revenue NQ rev (3m)18.13%
Revenue NY rev (1m)4.86%
Revenue NY rev (3m)4.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.93 | ||
| Fwd PE | 31.27 | ||
| P/S | 8.84 | ||
| P/FCF | 55.33 | ||
| P/OCF | 37.43 | ||
| P/B | 9.3 | ||
| P/tB | 11.8 | ||
| EV/EBITDA | 36.96 |
EPS(TTM)3.12
EY1.96%
EPS(NY)5.08
Fwd EY3.2%
FCF(TTM)2.87
FCFY1.81%
OCF(TTM)4.25
OCFY2.67%
SpS17.98
BVpS17.08
TBVpS13.47
PEG (NY)6.53
PEG (5Y)20.61
Graham Number34.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 16.31% | ||
| ROCE | 18.15% | ||
| ROIC | 14.93% | ||
| ROICexc | 16.48% | ||
| ROICexgc | 20.6% | ||
| OM | 18.84% | ||
| PM (TTM) | 15.49% | ||
| GM | 58.92% | ||
| FCFM | 15.98% |
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%
ROICexgc growth 3Y-36.99%
ROICexgc 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-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.44 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 177.17% | ||
| Cap/Sales | 7.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.99% | ||
| Profit Quality | 103.1% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 13.58 |
F-Score6
WACC10.61%
ROIC/WACC1.41
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)1.96%
EPS 3Y-18.64%
EPS 5Y2.47%
EPS Q2Q%-5.56%
EPS Next Y7.8%
EPS Next 2Y25.62%
EPS Next 3Y25.41%
EPS Next 5Y22.65%
Revenue 1Y (TTM)4.46%
Revenue growth 3Y-8.68%
Revenue growth 5Y4.21%
Sales Q2Q%4.33%
Revenue Next Year8.04%
Revenue Next 2Y14.91%
Revenue Next 3Y14.38%
Revenue Next 5Y12.6%
EBIT growth 1Y2.81%
EBIT growth 3Y-23.01%
EBIT growth 5Y0.38%
EBIT Next Year21.62%
EBIT Next 3Y25.87%
EBIT Next 5Y25.95%
FCF growth 1Y23.48%
FCF growth 3Y-21.12%
FCF growth 5Y1.31%
OCF growth 1Y29.91%
OCF growth 3Y-15.1%
OCF growth 5Y3.04%
TERADYNE INC / TER FAQ
What is the fundamental rating for TER stock?
ChartMill assigns a fundamental rating of 7 / 10 to TER.
Can you provide the valuation status for TERADYNE INC?
ChartMill assigns a valuation rating of 4 / 10 to TERADYNE INC (TER). This can be considered as Fairly Valued.
What is the profitability of TER stock?
TERADYNE INC (TER) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TER stock?
The Price/Earnings (PE) ratio for TERADYNE INC (TER) is 50.93 and the Price/Book (PB) ratio is 9.3.
Can you provide the financial health for TER stock?
The financial health rating of TERADYNE INC (TER) is 8 / 10.