193.56 USD
-3.11 (-1.58%)
193.55 USD
-0.01 (-0.01%)
We assign a fundamental rating of 7 out of 10 to TER. TER was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making TER a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, TER is valued expensive at the moment. These ratings would make TER suitable for quality investing!
1. Profitability
1.1 Basic Checks
TER had positive earnings in the past year.
TER had a positive operating cash flow in the past year.
TER had positive earnings in each of the past 5 years.
Each year in the past 5 years TER had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.18%, TER belongs to the best of the industry, outperforming 82.30% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.31%, TER belongs to the top of the industry, outperforming 80.53% of the companies in the same industry.
TER has a better Return On Invested Capital (14.93%) than 88.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TER is significantly above the industry average of 10.75%.
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
TER has a Profit Margin of 15.49%. This is in the better half of the industry: TER outperforms 72.57% of its industry peers.
In the last couple of years the Profit Margin of TER has remained more or less at the same level.
TER's Operating Margin of 18.84% is fine compared to the rest of the industry. TER outperforms 77.88% of its industry peers.
TER's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 58.92%, TER belongs to the top of the industry, outperforming 83.19% 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 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TER 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.
2.2 Solvency
An Altman-Z score of 16.23 indicates that TER is not in any danger for bankruptcy at the moment.
TER has a better Altman-Z score (16.23) than 86.73% 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.
Looking at the Debt to FCF ratio, with a value of 0.44, TER belongs to the top of the industry, outperforming 81.42% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that TER is not too dependend on debt financing.
TER has a Debt to Equity ratio of 0.07. This is comparable to the rest of the industry: TER outperforms 59.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 16.23 |
ROIC/WACC1.39
WACC10.75%
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 79.65% of its industry peers.
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's Quick ratio of 1.39 is on the low side compared to the rest of the industry. TER is outperformed by 76.99% of its industry peers.
The current and quick ratio evaluation for TER is rather negative, while it does have 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
The Earnings Per Share has been growing slightly by 1.96% over the past year.
The Earnings Per Share has been growing slightly by 2.47% on average over the past years.
The Revenue has been growing slightly by 4.46% in the past year.
TER shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
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
Based on estimates for the next years, TER will show a very strong growth in Earnings Per Share. The EPS will grow by 22.65% on average per year.
The Revenue is expected to grow by 12.60% on average over the next years. This is quite good.
EPS Next Y10.61%
EPS Next 2Y27.28%
EPS Next 3Y27.38%
EPS Next 5Y22.65%
Revenue Next Year9.52%
Revenue Next 2Y16.02%
Revenue Next 3Y15.47%
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
TER is valuated quite expensively with a Price/Earnings ratio of 62.04.
TER's Price/Earnings ratio is in line with the industry average.
TER is valuated expensively when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 37.11, which means the current valuation is very expensive for TER.
TER's Price/Forward Earnings ratio is in line with the industry average.
TER is valuated expensively when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.04 | ||
| Fwd PE | 37.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TER is on the same level as its industry peers.
TER's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.36 | ||
| EV/EBITDA | 45.29 |
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 27.38% in the coming years.
PEG (NY)5.85
PEG (5Y)25.1
EPS Next 2Y27.28%
EPS Next 3Y27.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, TER is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.56, TER pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, TER's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
The dividend of TER is nicely growing with an annual growth rate of 6.27%!
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)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.
TER's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.39%
EPS Next 2Y27.28%
EPS Next 3Y27.38%
193.56
-3.11 (-1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.89%
Inst Owner Change1.1%
Ins Owners0.17%
Ins Owner Change0.68%
Market Cap30.31B
Revenue(TTM)2.86B
Net Income(TTM)443.08M
Analysts75.45
Price Target206.22 (6.54%)
Short Float %3.71%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.49
Dividend Growth(5Y)6.27%
DP17.39%
Div Incr Years1
Div Non Decr Years10
Ex-DateN/A
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)10.03%
PT rev (3m)75.28%
EPS NQ rev (1m)1.65%
EPS NQ rev (3m)33.66%
EPS NY rev (1m)2.6%
EPS NY rev (3m)12.72%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)19.26%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)6.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.04 | ||
| Fwd PE | 37.11 | ||
| P/S | 10.6 | ||
| P/FCF | 66.36 | ||
| P/OCF | 44.89 | ||
| P/B | 11.16 | ||
| P/tB | 14.15 | ||
| EV/EBITDA | 45.29 |
EPS(TTM)3.12
EY1.61%
EPS(NY)5.22
Fwd EY2.69%
FCF(TTM)2.92
FCFY1.51%
OCF(TTM)4.31
OCFY2.23%
SpS18.26
BVpS17.35
TBVpS13.68
PEG (NY)5.85
PEG (5Y)25.1
Graham Number34.9
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 | 16.23 |
F-Score6
WACC10.75%
ROIC/WACC1.39
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 Y10.61%
EPS Next 2Y27.28%
EPS Next 3Y27.38%
EPS Next 5Y22.65%
Revenue 1Y (TTM)4.46%
Revenue growth 3Y-8.68%
Revenue growth 5Y4.21%
Sales Q2Q%4.33%
Revenue Next Year9.52%
Revenue Next 2Y16.02%
Revenue Next 3Y15.47%
Revenue Next 5Y12.6%
EBIT growth 1Y2.81%
EBIT growth 3Y-23.01%
EBIT growth 5Y0.38%
EBIT Next Year32.47%
EBIT Next 3Y32.64%
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.
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 62.04 and the Price/Book (PB) ratio is 11.16.
What is the financial health of TERADYNE INC (TER) stock?
The financial health rating of TERADYNE INC (TER) is 8 / 10.