TERADYNE INC (TER) Fundamental Analysis & Valuation

NASDAQ:TER • US8807701029

Current stock price

343.47 USD
+37.14 (+12.12%)
At close:
346.86 USD
+3.39 (+0.99%)
Pre-Market:

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.
  • TER had a positive operating cash flow in the past year.
  • Each year in the past 5 years TER has 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 13.24%. This is amongst the best in the industry. TER outperforms 85.22% of its industry peers.
  • With an excellent Return On Equity value of 19.82%, TER belongs to the best of the industry, outperforming 87.83% of the companies in the same industry.
  • TER's Return On Invested Capital of 18.76% is amongst the best of the industry. TER outperforms 92.17% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TER is significantly above the industry average of 10.73%.
  • 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.
  • The Operating Margin of TER (21.59%) is better than 80.87% of its industry peers.
  • In the last couple of years the Operating Margin of TER has declined.
  • TER's Gross Margin of 58.22% is amongst the best of the industry. TER outperforms 82.61% of its industry peers.
  • 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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7

2. TER Health Analysis

2.1 Basic Checks

  • TER has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, TER has less shares outstanding
  • TER has less shares outstanding than it did 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

  • An Altman-Z score of 25.04 indicates that TER is not in any danger for bankruptcy at the moment.
  • TER has a better Altman-Z score (25.04) than 82.61% 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.
  • The Debt to FCF ratio of TER (0.44) is better than 80.00% 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 RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.44
Altman-Z 25.04
ROIC/WACC1.46
WACC12.83%
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.
  • Looking at the Current ratio, with a value of 1.75, TER is doing worse than 84.35% of the companies in the same industry.
  • 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.
  • TER has a worse Quick ratio (1.41) than 79.13% 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 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 67.05% over the past year.
  • The Earnings Per Share has been decreasing by -2.94% on average over the past years.
  • TER shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.13%.
  • TER shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.44% yearly.
EPS 1Y (TTM)67.05%
EPS 3Y-2.32%
EPS 5Y-2.94%
EPS Q2Q%241.33%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y0.37%
Revenue growth 5Y0.44%
Sales Q2Q%87.04%

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.
  • TER is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.83% yearly.
EPS Next Y59.34%
EPS Next 2Y44.96%
EPS Next 3Y38.55%
EPS Next 5Y30.21%
Revenue Next Year35.73%
Revenue Next 2Y27.02%
Revenue Next 3Y23.79%
Revenue Next 5Y19.83%

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.
  • 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

  • TER is valuated quite expensively with a Price/Earnings ratio of 59.42.
  • Based on the Price/Earnings ratio, TER is valued a bit cheaper than 65.22% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.77, TER is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 41.17, the valuation of TER can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TER indicates a somewhat cheap valuation: TER is cheaper than 60.87% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.75, TER is valued quite expensively.
Industry RankSector Rank
PE 59.42
Fwd PE 41.17
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 is on the same level as the industry average.
  • TER's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 119.39
EV/EBITDA 65.42
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 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 38.55% in the coming years.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y44.96%
EPS Next 3Y38.55%

More info and screens

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.
  • Compared to an average industry Dividend Yield of 0.41, TER pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.72%
Div Incr Years0
Div Non Decr Years11
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.
  • The dividend of TER is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.77%
EPS Next 2Y44.96%
EPS Next 3Y38.55%
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 (4/30/2026, 8:19:52 PM)

Premarket: 346.86 +3.39 (+0.99%)

343.47

+37.14 (+12.12%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength100
Industry Growth70.81
Earnings (Last)04-28
Earnings (Next)07-27
Inst Owners98.35%
Inst Owner Change0.05%
Ins Owners0.2%
Ins Owner Change4.89%
Market Cap53.77B
Revenue(TTM)3.19B
Net Income(TTM)554.05M
Analysts76.52
Price Target348.34 (1.42%)
Short Float %3.14%
Short Ratio1.6
Dividend
Industry RankSector Rank
Dividend Yield 0.17%
Yearly Dividend0.48
Dividend Growth(5Y)3.72%
DP13.77%
Div Incr Years0
Div Non Decr Years11
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)4.59%
PT rev (3m)51.94%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)70.56%
EPS NY rev (1m)0.39%
EPS NY rev (3m)20.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)30.47%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)9.99%
Valuation
Industry RankSector Rank
PE 59.42
Fwd PE 41.17
P/S 16.86
P/FCF 119.39
P/OCF 79.73
P/B 19.23
P/tB 24.18
EV/EBITDA 65.42
EPS(TTM)5.78
EY1.68%
EPS(NY)8.34
Fwd EY2.43%
FCF(TTM)2.88
FCFY0.84%
OCF(TTM)4.31
OCFY1.25%
SpS20.38
BVpS17.86
TBVpS14.2
PEG (NY)1
PEG (5Y)N/A
Graham Number48.1908 (-85.97%)
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 25.04
F-Score6
WACC12.83%
ROIC/WACC1.46
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)67.05%
EPS 3Y-2.32%
EPS 5Y-2.94%
EPS Q2Q%241.33%
EPS Next Y59.34%
EPS Next 2Y44.96%
EPS Next 3Y38.55%
EPS Next 5Y30.21%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y0.37%
Revenue growth 5Y0.44%
Sales Q2Q%87.04%
Revenue Next Year35.73%
Revenue Next 2Y27.02%
Revenue Next 3Y23.79%
Revenue Next 5Y19.83%
EBIT growth 1Y24.69%
EBIT growth 3Y-6.75%
EBIT growth 5Y-5.55%
EBIT Next Year106.27%
EBIT Next 3Y49.04%
EBIT Next 5Y34.66%
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.


How profitable is TERADYNE INC (TER) stock?

TERADYNE INC (TER) has a profitability rating of 8 / 10.


What is the valuation of TERADYNE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for TERADYNE INC (TER) is 59.42 and the Price/Book (PB) ratio is 19.23.


How sustainable is the dividend of TERADYNE INC (TER) stock?

The dividend rating of TERADYNE INC (TER) is 6 / 10 and the dividend payout ratio is 13.77%.