TERADYNE INC (TER) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:TER • US8807701029

300.11 USD
+28.98 (+10.69%)
At close: Feb 6, 2026
301.396 USD
+1.29 (+0.43%)
After Hours: 2/6/2026, 8:08:12 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TER. TER was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While TER has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, TER is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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.
  • In the past 5 years TER has always been profitable.
  • In the past 5 years TER always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

  • TER has a Return On Assets of 13.29%. This is amongst the best in the industry. TER outperforms 84.07% of its industry peers.
  • TER's Return On Equity of 19.82% is amongst the best of the industry. TER outperforms 84.96% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 18.76%, TER belongs to the top of the industry, outperforming 92.04% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TER is significantly above the industry average of 10.71%.
  • The last Return On Invested Capital (18.76%) for TER is above the 3 year average (17.05%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 13.29%
ROE 19.82%
ROIC 18.76%
ROA(3y)13.59%
ROA(5y)17.57%
ROE(3y)18.94%
ROE(5y)25.12%
ROIC(3y)17.05%
ROIC(5y)22.89%
TER Yearly ROA, ROE, ROICTER Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

1.3 Margins

  • With a decent Profit Margin value of 17.37%, TER is doing good in the industry, outperforming 78.76% of the companies in the same industry.
  • TER's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 21.59%, TER belongs to the top of the industry, outperforming 80.53% of the companies in the same industry.
  • TER's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 58.22%, TER belongs to the best of the industry, outperforming 82.30% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TER has remained more or less at the same level.
Industry RankSector Rank
OM 21.59%
PM (TTM) 17.37%
GM 58.22%
OM growth 3Y-7.09%
OM growth 5Y-5.96%
PM growth 3Y-8.51%
PM growth 5Y-7.11%
GM growth 3Y-0.54%
GM growth 5Y0.35%
TER Yearly Profit, Operating, Gross MarginsTER Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TER is still creating some value.
  • TER has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TER has less shares outstanding
  • Compared to 1 year ago, TER has a worse debt to assets ratio.
TER Yearly Shares OutstandingTER Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
TER Yearly Total Debt VS Total AssetsTER Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • TER has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
  • The Debt to FCF ratio of TER (0.44) is better than 80.53% of its industry peers.
  • A Debt/Equity ratio of 0.07 indicates that TER is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.07, TER is in line with its industry, outperforming 59.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.44
Altman-Z N/A
ROIC/WACC1.7
WACC11.03%
TER Yearly LT Debt VS Equity VS FCFTER Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 1.76 indicates that TER should not have too much problems paying its short term obligations.
  • TER has a worse Current ratio (1.76) than 80.53% of its industry peers.
  • TER has a Quick Ratio of 1.41. This is a normal value and indicates that TER is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of TER (1.41) is worse than 76.99% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.41
TER Yearly Current Assets VS Current LiabilitesTER Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.29% over the past year.
  • The Earnings Per Share has been decreasing by -2.94% on average over the past years.
  • The Revenue has grown by 13.13% in the past year. This is quite good.
  • TER shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
EPS 1Y (TTM)23.29%
EPS 3Y-2.32%
EPS 5Y-2.94%
EPS Q2Q%89.47%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y0.37%
Revenue growth 5Y0.44%
Sales Q2Q%43.89%

3.2 Future

  • TER is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.50% yearly.
  • TER is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.39% yearly.
EPS Next Y39.46%
EPS Next 2Y37.77%
EPS Next 3Y24.76%
EPS Next 5Y22.5%
Revenue Next Year25.84%
Revenue Next 2Y22.11%
Revenue Next 3Y15.5%
Revenue Next 5Y13.39%

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.
TER Yearly Revenue VS EstimatesTER Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B 5B
TER Yearly EPS VS EstimatesTER Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 75.59, which means the current valuation is very expensive for TER.
  • The rest of the industry has a similar Price/Earnings ratio as TER.
  • When comparing the Price/Earnings ratio of TER to the average of the S&P500 Index (27.93), we can say TER is valued expensively.
  • Based on the Price/Forward Earnings ratio of 54.21, the valuation of TER can be described as expensive.
  • TER's Price/Forward Earnings is on the same level as the industry average.
  • TER is valuated expensively when we compare the Price/Forward Earnings ratio to 27.77, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 75.59
Fwd PE 54.21
TER Price Earnings VS Forward Price EarningsTER Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • TER's Enterprise Value to EBITDA ratio is in line with the industry average.
  • TER's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 104.35
EV/EBITDA 57.13
TER Per share dataTER EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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.
  • TER has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as TER's earnings are expected to grow with 24.76% in the coming years.
PEG (NY)1.92
PEG (5Y)N/A
EPS Next 2Y37.77%
EPS Next 3Y24.76%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • TER has a yearly dividend return of 0.19%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.51, TER pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, TER's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.19%

5.2 History

  • The dividend of TER has a limited annual growth rate of 3.69%.
  • TER has paid a dividend for at least 10 years, which is a reliable track record.
  • TER has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.69%
Div Incr Years1
Div Non Decr Years10
TER Yearly Dividends per shareTER Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • 13.77% of the earnings are spent on dividend by TER. This is a low number and sustainable payout ratio.
  • TER's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.77%
EPS Next 2Y37.77%
EPS Next 3Y24.76%
TER Yearly Income VS Free CF VS DividendTER Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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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Find the best dividend stocksShow peers with best dividend

TERADYNE INC

NASDAQ:TER (2/6/2026, 8:08:12 PM)

After market: 301.396 +1.29 (+0.43%)

300.11

+28.98 (+10.69%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-02
Earnings (Next)04-27
Inst Owners107.06%
Inst Owner Change-1.93%
Ins Owners0.17%
Ins Owner Change4.87%
Market Cap47.00B
Revenue(TTM)3.19B
Net Income(TTM)554.05M
Analysts78.18
Price Target242.09 (-19.33%)
Short Float %3.17%
Short Ratio1.64
Dividend
Industry RankSector Rank
Dividend Yield 0.19%
Yearly Dividend0.48
Dividend Growth(5Y)3.69%
DP13.77%
Div Incr Years1
Div Non Decr Years10
Ex-Date02-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.86%
Min EPS beat(2)6.84%
Max EPS beat(2)30.88%
EPS beat(4)4
Avg EPS beat(4)15.68%
Min EPS beat(4)4.95%
Max EPS beat(4)30.88%
EPS beat(8)8
Avg EPS beat(8)18.11%
EPS beat(12)12
Avg EPS beat(12)17.34%
EPS beat(16)16
Avg EPS beat(16)15.86%
Revenue beat(2)2
Avg Revenue beat(2)6.3%
Min Revenue beat(2)2.4%
Max Revenue beat(2)10.21%
Revenue beat(4)2
Avg Revenue beat(4)2.92%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)10.21%
Revenue beat(8)6
Avg Revenue beat(8)2.76%
Revenue beat(12)9
Avg Revenue beat(12)2.3%
Revenue beat(16)13
Avg Revenue beat(16)2.06%
PT rev (1m)17.39%
PT rev (3m)72.06%
EPS NQ rev (1m)6.33%
EPS NQ rev (3m)6.63%
EPS NY rev (1m)6.14%
EPS NY rev (3m)8.96%
Revenue NQ rev (1m)1.68%
Revenue NQ rev (3m)2.42%
Revenue NY rev (1m)2.38%
Revenue NY rev (3m)4.38%
Valuation
Industry RankSector Rank
PE 75.59
Fwd PE 54.21
P/S 14.73
P/FCF 104.35
P/OCF 69.69
P/B 16.81
P/tB 21.14
EV/EBITDA 57.13
EPS(TTM)3.97
EY1.32%
EPS(NY)5.54
Fwd EY1.84%
FCF(TTM)2.88
FCFY0.96%
OCF(TTM)4.31
OCFY1.43%
SpS20.37
BVpS17.85
TBVpS14.2
PEG (NY)1.92
PEG (5Y)N/A
Graham Number39.93
Profitability
Industry RankSector Rank
ROA 13.29%
ROE 19.82%
ROCE 22.44%
ROIC 18.76%
ROICexc 20.81%
ROICexgc 25.83%
OM 21.59%
PM (TTM) 17.37%
GM 58.22%
FCFM 14.12%
ROA(3y)13.59%
ROA(5y)17.57%
ROE(3y)18.94%
ROE(5y)25.12%
ROIC(3y)17.05%
ROIC(5y)22.89%
ROICexc(3y)21.26%
ROICexc(5y)34.04%
ROICexgc(3y)26.48%
ROICexgc(5y)45.63%
ROCE(3y)19.61%
ROCE(5y)25.98%
ROICexgc growth 3Y-21.73%
ROICexgc growth 5Y-21.19%
ROICexc growth 3Y-19.99%
ROICexc growth 5Y-17.31%
OM growth 3Y-7.09%
OM growth 5Y-5.96%
PM growth 3Y-8.51%
PM growth 5Y-7.11%
GM growth 3Y-0.54%
GM growth 5Y0.35%
F-Score6
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.44
Debt/EBITDA 0.24
Cap/Depr 175.03%
Cap/Sales 7.02%
Interest Coverage 250
Cash Conversion 82.59%
Profit Quality 81.29%
Current Ratio 1.76
Quick Ratio 1.41
Altman-Z N/A
F-Score6
WACC11.03%
ROIC/WACC1.7
Cap/Depr(3y)161.48%
Cap/Depr(5y)147.5%
Cap/Sales(3y)6.67%
Cap/Sales(5y)5.75%
Profit Quality(3y)87.85%
Profit Quality(5y)83.34%
High Growth Momentum
Growth
EPS 1Y (TTM)23.29%
EPS 3Y-2.32%
EPS 5Y-2.94%
EPS Q2Q%89.47%
EPS Next Y39.46%
EPS Next 2Y37.77%
EPS Next 3Y24.76%
EPS Next 5Y22.5%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y0.37%
Revenue growth 5Y0.44%
Sales Q2Q%43.89%
Revenue Next Year25.84%
Revenue Next 2Y22.11%
Revenue Next 3Y15.5%
Revenue Next 5Y13.39%
EBIT growth 1Y24.69%
EBIT growth 3Y-6.75%
EBIT growth 5Y-5.55%
EBIT Next Year69.72%
EBIT Next 3Y36.41%
EBIT Next 5Y30.05%
FCF growth 1Y-4.99%
FCF growth 3Y2.79%
FCF growth 5Y-8.01%
OCF growth 1Y0.33%
OCF growth 3Y5.28%
OCF growth 5Y-4.94%

TERADYNE INC / TER FAQ

What is the fundamental rating for TER stock?

ChartMill assigns a fundamental rating of 6 / 10 to TER.


What is the valuation status for TER stock?

ChartMill assigns a valuation rating of 3 / 10 to TERADYNE INC (TER). This can be considered as Overvalued.


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 75.59 and the Price/Book (PB) ratio is 16.81.


What is the financial health of TERADYNE INC (TER) stock?

The financial health rating of TERADYNE INC (TER) is 5 / 10.