TERADYNE INC (TER) Stock Fundamental Analysis

NASDAQ:TER • US8807701029

324.85 USD
+8.95 (+2.83%)
At close: Feb 20, 2026
325.45 USD
+0.6 (+0.18%)
After Hours: 2/20/2026, 8:07:08 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, TER scores 6 out of 10 in our fundamental rating. 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

  • TER had positive earnings in the past year.
  • In the past year TER had a positive cash flow from operations.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

1.2 Ratios

  • TER has a better Return On Assets (13.29%) than 84.96% of its industry peers.
  • Looking at the Return On Equity, with a value of 19.82%, TER belongs to the top of the industry, outperforming 86.73% of the companies in the same industry.
  • The Return On Invested Capital of TER (18.76%) is better than 92.92% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TER is significantly above the industry average of 10.65%.
  • The 3 year average ROIC (17.05%) for TER is below the current ROIC(18.76%), indicating increased profibility in the last year.
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 79.65% 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.
  • In the last couple of years the Operating Margin of TER has declined.
  • Looking at the Gross Margin, with a value of 58.22%, TER belongs to the top of the industry, outperforming 81.42% of the companies in the same industry.
  • TER's Gross Margin has been stable in the last couple of years.
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

4

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.
  • The number of shares outstanding for TER has been reduced compared to 1 year ago.
  • The number of shares outstanding for TER has been reduced compared to 5 years ago.
  • 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

  • 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's Debt to FCF ratio of 0.44 is fine compared to the rest of the industry. TER outperforms 78.76% of its industry peers.
  • TER has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.07, TER perfoms like the industry average, 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/WACC1.74
WACC10.79%
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

  • 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.
  • The Current ratio of TER (1.76) is worse than 80.53% of its industry peers.
  • A Quick Ratio of 1.41 indicates that TER should not have too much problems paying its short term obligations.
  • TER's Quick ratio of 1.41 is on the low side compared to the rest of the industry. TER is outperformed by 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.
  • Measured over the past years, TER shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.94% on average per year.
  • The Revenue has grown by 13.13% in the past year. This is quite good.
  • Measured over the past years, TER shows a small growth in Revenue. The Revenue has been growing by 0.44% on average per year.
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

  • The Earnings Per Share is expected to grow by 30.21% on average over the next years. This is a very strong growth
  • TER is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.29% yearly.
EPS Next Y39.46%
EPS Next 2Y37.77%
EPS Next 3Y24.76%
EPS Next 5Y30.21%
Revenue Next Year25.84%
Revenue Next 2Y22.11%
Revenue Next 3Y15.5%
Revenue Next 5Y18.29%

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.
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 2030 2B 4B 6B
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 2030 5 10

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 81.83, TER can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as TER.
  • TER's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.99.
  • A Price/Forward Earnings ratio of 58.67 indicates a quite expensive valuation of TER.
  • TER's Price/Forward Earnings is on the same level as the industry average.
  • TER's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 81.83
Fwd PE 58.67
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TER is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 112.95
EV/EBITDA 60.16
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 an expensive valuation of the company.
  • The excellent profitability rating of TER may justify a higher PE ratio.
  • TER's earnings are expected to grow with 24.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.07
PEG (5Y)N/A
EPS Next 2Y37.77%
EPS Next 3Y24.76%

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

6

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.16%, TER is not a good candidate for dividend investing.
  • TER's Dividend Yield is a higher than the industry average which is at 0.50.
  • Compared to an average S&P500 Dividend Yield of 1.85, TER's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.16%

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 their dividend for at least 10 years, which is a reliable track record.
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 (2/20/2026, 8:07:08 PM)

After market: 325.45 +0.6 (+0.18%)

324.85

+8.95 (+2.83%)

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-5.05%
Ins Owners0.17%
Ins Owner Change4.93%
Market Cap50.87B
Revenue(TTM)3.19B
Net Income(TTM)554.05M
Analysts77.27
Price Target242.09 (-25.48%)
Short Float %2.96%
Short Ratio1.39
Dividend
Industry RankSector Rank
Dividend Yield 0.16%
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)64.04%
EPS NQ rev (3m)66.64%
EPS NY rev (1m)6.14%
EPS NY rev (3m)8.96%
Revenue NQ rev (1m)27.23%
Revenue NQ rev (3m)28.97%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)4.38%
Valuation
Industry RankSector Rank
PE 81.83
Fwd PE 58.67
P/S 15.95
P/FCF 112.95
P/OCF 75.44
P/B 18.2
P/tB 22.88
EV/EBITDA 60.16
EPS(TTM)3.97
EY1.22%
EPS(NY)5.54
Fwd EY1.7%
FCF(TTM)2.88
FCFY0.89%
OCF(TTM)4.31
OCFY1.33%
SpS20.37
BVpS17.85
TBVpS14.2
PEG (NY)2.07
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
WACC10.79%
ROIC/WACC1.74
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 5Y30.21%
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 5Y18.29%
EBIT growth 1Y24.69%
EBIT growth 3Y-6.75%
EBIT growth 5Y-5.55%
EBIT Next Year69.72%
EBIT Next 3Y36.41%
EBIT Next 5Y35.36%
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 81.83 and the Price/Book (PB) ratio is 18.2.


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

The financial health rating of TERADYNE INC (TER) is 4 / 10.