TERADYNE INC (TER) Fundamental Analysis & Valuation

NASDAQ:TER • US8807701029

Current stock price

290.83 USD
-11.57 (-3.83%)
At close:
295 USD
+4.17 (+1.43%)
After Hours:

This TER fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. TER Profitability Analysis

1.1 Basic Checks

  • TER had positive earnings in the past year.
  • In the past year TER had a positive cash flow from operations.
  • In the past 5 years TER has always been profitable.
  • Each year in the past 5 years TER had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 13.24%, TER belongs to the top of the industry, outperforming 85.22% of the companies in the same industry.
  • The Return On Equity of TER (19.82%) is better than 87.83% of its industry peers.
  • The Return On Invested Capital of TER (18.76%) is better than 92.17% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TER is significantly above the industry average of 10.52%.
  • 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 13.24%
ROE 19.82%
ROIC 18.76%
ROA(3y)13.58%
ROA(5y)17.56%
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

  • TER has a better Profit Margin (17.37%) than 80.00% of its industry peers.
  • In the last couple of years the Profit Margin of TER has declined.
  • TER has a Operating Margin of 21.59%. This is amongst the best in the industry. TER outperforms 80.87% of its industry peers.
  • In the last couple of years the Operating Margin of TER has declined.
  • TER has a better Gross Margin (58.22%) than 81.74% of its industry peers.
  • 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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7

2. TER Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TER is creating some value.
  • TER has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for TER has been reduced compared to 5 years ago.
  • The debt/assets ratio for TER is higher compared to a year ago.
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 an Altman-Z score of 21.48. This indicates that TER is financially healthy and has little risk of bankruptcy at the moment.
  • TER has a better Altman-Z score (21.48) than 86.09% 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.
  • With a decent Debt to FCF ratio value of 0.44, TER is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • TER has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.07, TER is in line with its industry, outperforming 58.26% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.44
Altman-Z 21.48
ROIC/WACC1.63
WACC11.54%
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 1.75. 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 (1.75) is worse than 81.74% of its industry peers.
  • A Quick Ratio of 1.41 indicates that TER should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.41, TER is doing worse than 75.65% of the companies in the same industry.
  • 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 RankSector Rank
Current Ratio 1.75
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. TER Growth Analysis

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 30.21% yearly.
  • Based on estimates for the next years, TER will show a quite strong growth in Revenue. The Revenue will grow by 18.29% on average per year.
EPS Next Y58.72%
EPS Next 2Y44.61%
EPS Next 3Y38.72%
EPS Next 5Y30.21%
Revenue Next Year35.56%
Revenue Next 2Y26.5%
Revenue Next 3Y23.79%
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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4

4. TER Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 73.26, TER can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as TER.
  • The average S&P500 Price/Earnings ratio is at 25.23. TER is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 46.16, TER can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as TER.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. TER is valued rather expensively when compared to this.
Industry RankSector Rank
PE 73.26
Fwd PE 46.16
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 101.09
EV/EBITDA 55.33
TER Per share dataTER EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • TER's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • 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 38.72% in the coming years.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y44.61%
EPS Next 3Y38.72%

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

6

5. TER Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.17%, 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 1.89, TER's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.17%

5.2 History

  • The dividend of TER has a limited annual growth rate of 3.72%.
  • 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)3.72%
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 2Y44.61%
EPS Next 3Y38.72%
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

More info and screens

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TER Fundamentals: All Metrics, Ratios and Statistics

TERADYNE INC

NASDAQ:TER (3/20/2026, 8:24:51 PM)

After market: 295 +4.17 (+1.43%)

290.83

-11.57 (-3.83%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-02
Earnings (Next)04-27
Inst Owners98.29%
Inst Owner Change-6.89%
Ins Owners0.2%
Ins Owner Change4.97%
Market Cap45.53B
Revenue(TTM)3.19B
Net Income(TTM)554.05M
Analysts76.52
Price Target308.37 (6.03%)
Short Float %2.98%
Short Ratio1.31
Dividend
Industry RankSector Rank
Dividend Yield 0.17%
Yearly Dividend0.48
Dividend Growth(5Y)3.72%
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)27.38%
PT rev (3m)57.93%
EPS NQ rev (1m)3.41%
EPS NQ rev (3m)71.67%
EPS NY rev (1m)13.81%
EPS NY rev (3m)21.15%
Revenue NQ rev (1m)2.26%
Revenue NQ rev (3m)31.38%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)10.84%
Valuation
Industry RankSector Rank
PE 73.26
Fwd PE 46.16
P/S 14.27
P/FCF 101.09
P/OCF 67.51
P/B 16.29
P/tB 20.48
EV/EBITDA 55.33
EPS(TTM)3.97
EY1.37%
EPS(NY)6.3
Fwd EY2.17%
FCF(TTM)2.88
FCFY0.99%
OCF(TTM)4.31
OCFY1.48%
SpS20.38
BVpS17.86
TBVpS14.2
PEG (NY)1.25
PEG (5Y)N/A
Graham Number39.94
Profitability
Industry RankSector Rank
ROA 13.24%
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)13.58%
ROA(5y)17.56%
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 217.64
Cash Conversion 82.59%
Profit Quality 81.29%
Current Ratio 1.75
Quick Ratio 1.41
Altman-Z 21.48
F-Score6
WACC11.54%
ROIC/WACC1.63
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 Y58.72%
EPS Next 2Y44.61%
EPS Next 3Y38.72%
EPS Next 5Y30.21%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y0.37%
Revenue growth 5Y0.44%
Sales Q2Q%43.89%
Revenue Next Year35.56%
Revenue Next 2Y26.5%
Revenue Next 3Y23.79%
Revenue Next 5Y18.29%
EBIT growth 1Y24.69%
EBIT growth 3Y-6.75%
EBIT growth 5Y-5.55%
EBIT Next Year105.03%
EBIT Next 3Y50.1%
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 Fundamental Analysis 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 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 73.26 and the Price/Book (PB) ratio is 16.29.


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

The financial health rating of TERADYNE INC (TER) is 7 / 10.