193.37 USD
-10.6 (-5.2%)
191.56 USD
-1.81 (-0.94%)
Overall TER gets a fundamental rating of 7 out of 10. We evaluated TER against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. TER gets an excellent profitability rating and is at the same time showing great financial health properties. TER is quite expensive at the moment. It does show a decent growth rate. These ratings would make TER suitable for quality investing!
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.
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
With an excellent Return On Assets value of 11.18%, TER belongs to the best of the industry, outperforming 83.04% of the companies in the same industry.
With an excellent Return On Equity value of 16.31%, TER belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
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 10.82%.
The last Return On Invested Capital (14.93%) for TER is well below the 3 year average (19.67%), which needs to be investigated, but indicates that TER had better years and this may not be a problem.
| 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's Profit Margin of 15.49% is fine compared to the rest of the industry. TER outperforms 74.11% 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 has a Operating Margin of 18.84%. This is in the better half of the industry: TER outperforms 78.57% of its industry peers.
TER's Operating Margin has declined in the last couple of years.
TER has a better Gross Margin (58.92%) 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TER is creating value.
TER has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TER has less shares outstanding
There is no outstanding debt for TER. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 17.02 indicates that TER is not in any danger for bankruptcy at the moment.
The Altman-Z score of TER (17.02) is better than 83.93% of its industry peers.
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.
TER's Debt to FCF ratio of 0.44 is amongst the best of the industry. TER outperforms 81.25% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that TER is not too dependend on debt financing.
The Debt to Equity ratio of TER (0.07) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 17.02 |
ROIC/WACC1.42
WACC10.48%
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.
A Quick Ratio of 1.39 indicates that TER should not have too much problems paying its short term obligations.
TER has a worse Quick ratio (1.39) than 76.79% 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.
Measured over the past 5 years, TER shows a small growth in Earnings Per Share. The EPS has been growing by 2.47% on average per year.
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
TER is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.65% yearly.
The Revenue is expected to grow by 12.60% on average over the next years. This is quite good.
EPS Next Y10.05%
EPS Next 2Y27.09%
EPS Next 3Y26.77%
EPS Next 5Y22.65%
Revenue Next Year9.13%
Revenue Next 2Y15.73%
Revenue Next 3Y15.07%
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
A Price/Earnings ratio of 61.98 indicates a quite expensive valuation of TER.
Compared to the rest of the industry, the Price/Earnings ratio of TER is on the same level as its industry peers.
TER is valuated expensively when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
TER is valuated quite expensively with a Price/Forward Earnings ratio of 37.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TER is on the same level as its industry peers.
TER's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.98 | ||
| Fwd PE | 37.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TER.
60.71% of the companies in the same industry are more expensive than TER, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.29 | ||
| EV/EBITDA | 47.75 |
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 26.77% in the coming years.
PEG (NY)6.17
PEG (5Y)25.08
EPS Next 2Y27.09%
EPS Next 3Y26.77%
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, TER is not a good candidate for dividend investing.
TER's Dividend Yield is a higher than the industry average which is at 1.91.
With a Dividend Yield of 0.24, TER pays less dividend than the S&P500 average, which is at 2.27.
| 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 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.
TER's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.39%
EPS Next 2Y27.09%
EPS Next 3Y26.77%
193.37
-10.6 (-5.2%)
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 Change0.92%
Market Cap30.28B
Revenue(TTM)2.86B
Net Income(TTM)443.08M
Analysts75.45
Price Target195.25 (0.97%)
Short Float %3.7%
Short Ratio1.6
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-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)38.77%
PT rev (3m)65.96%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)30.98%
EPS NY rev (1m)2.09%
EPS NY rev (3m)12.85%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)17.76%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)6.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.98 | ||
| Fwd PE | 37.18 | ||
| P/S | 10.59 | ||
| P/FCF | 66.29 | ||
| P/OCF | 44.84 | ||
| P/B | 11.14 | ||
| P/tB | 14.13 | ||
| EV/EBITDA | 47.75 |
EPS(TTM)3.12
EY1.61%
EPS(NY)5.2
Fwd EY2.69%
FCF(TTM)2.92
FCFY1.51%
OCF(TTM)4.31
OCFY2.23%
SpS18.26
BVpS17.35
TBVpS13.68
PEG (NY)6.17
PEG (5Y)25.08
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 | 17.02 |
F-Score6
WACC10.48%
ROIC/WACC1.42
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 Y10.05%
EPS Next 2Y27.09%
EPS Next 3Y26.77%
EPS Next 5Y22.65%
Revenue 1Y (TTM)4.46%
Revenue growth 3Y-8.68%
Revenue growth 5Y4.21%
Sales Q2Q%4.33%
Revenue Next Year9.13%
Revenue Next 2Y15.73%
Revenue Next 3Y15.07%
Revenue Next 5Y12.6%
EBIT growth 1Y2.81%
EBIT growth 3Y-23.01%
EBIT growth 5Y0.38%
EBIT Next Year31.35%
EBIT Next 3Y31.96%
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 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 61.98 and the Price/Book (PB) ratio is 11.14.
Can you provide the financial health for TER stock?
The financial health rating of TERADYNE INC (TER) is 8 / 10.