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TERADYNE INC (TER) Stock Fundamental Analysis

NASDAQ:TER - Nasdaq - US8807701029 - Common Stock - Currency: USD

81.42  -0.05 (-0.06%)

Premarket: 80.7 -0.72 (-0.88%)

Fundamental Rating

7

Overall TER gets a fundamental rating of 7 out of 10. We evaluated TER against 110 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. TER is not valued too expensively and it also shows a decent growth rate. This makes TER very considerable for quality investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year TER was profitable.
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

1.2 Ratios

TER has a better Return On Assets (15.57%) than 89.09% of its industry peers.
With an excellent Return On Equity value of 20.63%, TER belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
TER's Return On Invested Capital of 17.39% is amongst the best of the industry. TER outperforms 90.91% 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 11.17%.
Industry RankSector Rank
ROA 15.57%
ROE 20.63%
ROIC 17.39%
ROA(3y)15.98%
ROA(5y)19.21%
ROE(3y)22.06%
ROE(5y)28.25%
ROIC(3y)19.67%
ROIC(5y)24.33%
TER Yearly ROA, ROE, ROICTER Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 19.86%, TER belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
In the last couple of years the Profit Margin of TER has remained more or less at the same level.
TER has a better Operating Margin (20.83%) than 81.82% of its industry peers.
In the last couple of years the Operating Margin of TER has declined.
Looking at the Gross Margin, with a value of 59.36%, TER belongs to the top of the industry, outperforming 86.36% 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 RankSector Rank
OM 20.83%
PM (TTM) 19.86%
GM 59.36%
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%
TER Yearly Profit, Operating, Gross MarginsTER Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TER is creating some value.
Compared to 1 year ago, TER has more shares outstanding
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.
TER Yearly Shares OutstandingTER Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
TER Yearly Total Debt VS Total AssetsTER Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 10.67 indicates that TER is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.67, TER belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 10.67
ROIC/WACC1.52
WACC11.45%
TER Yearly LT Debt VS Equity VS FCFTER Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 2.70 indicates that TER has no problem at all paying its short term obligations.
TER has a Current ratio (2.70) which is comparable to the rest of the industry.
A Quick Ratio of 2.17 indicates that TER has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.17, TER is in line with its industry, outperforming 50.91% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.7
Quick Ratio 2.17
TER Yearly Current Assets VS Current LiabilitesTER Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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6

3. Growth

3.1 Past

TER shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.72%, which is quite good.
TER shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.47% yearly.
Looking at the last year, TER shows a quite strong growth in Revenue. The Revenue has grown by 9.30% in the last year.
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)19.72%
EPS 3Y-18.64%
EPS 5Y2.47%
EPS Q2Q%47.06%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y-8.68%
Revenue growth 5Y4.21%
Sales Q2Q%14.31%

3.2 Future

TER is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.90% yearly.
Based on estimates for the next years, TER will show a quite strong growth in Revenue. The Revenue will grow by 10.96% on average per year.
EPS Next Y0.4%
EPS Next 2Y19.41%
EPS Next 3Y21.06%
EPS Next 5Y19.9%
Revenue Next Year3.17%
Revenue Next 2Y10.58%
Revenue Next 3Y11.99%
Revenue Next 5Y10.96%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
TER Yearly Revenue VS EstimatesTER Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B
TER Yearly EPS VS EstimatesTER Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 23.53, the valuation of TER can be described as rather expensive.
Based on the Price/Earnings ratio, TER is valued a bit cheaper than 69.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of TER to the average of the S&P500 Index (26.60), we can say TER is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 17.73, the valuation of TER can be described as rather expensive.
TER's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TER is cheaper than 70.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TER to the average of the S&P500 Index (22.43), we can say TER is valued slightly cheaper.
Industry RankSector Rank
PE 23.53
Fwd PE 17.73
TER Price Earnings VS Forward Price EarningsTER Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TER is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
TER's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TER is cheaper than 80.91% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.52
EV/EBITDA 17.26
TER Per share dataTER EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
A more expensive valuation may be justified as TER's earnings are expected to grow with 21.06% in the coming years.
PEG (NY)58.24
PEG (5Y)9.52
EPS Next 2Y19.41%
EPS Next 3Y21.06%

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6

5. Dividend

5.1 Amount

With a yearly dividend of 0.58%, TER is not a good candidate for dividend investing.
The stock price of TER dropped by -29.76% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TER's Dividend Yield is a higher than the industry average which is at 2.41.
Compared to an average S&P500 Dividend Yield of 2.36, TER's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.58%

5.2 History

On average, the dividend of TER grows each year by 6.27%, which is quite nice.
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
TER Yearly Dividends per shareTER Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

TER pays out 13.42% of its income as dividend. This is a sustainable payout ratio.
The dividend of TER is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.42%
EPS Next 2Y19.41%
EPS Next 3Y21.06%
TER Yearly Income VS Free CF VS DividendTER Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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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TERADYNE INC

NASDAQ:TER (5/20/2025, 8:00:01 PM)

Premarket: 80.7 -0.72 (-0.88%)

81.42

-0.05 (-0.06%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)04-28 2025-04-28/amc
Earnings (Next)07-22 2025-07-22/amc
Inst Owners101.1%
Inst Owner Change-1.67%
Ins Owners0.15%
Ins Owner Change3.14%
Market Cap13.09B
Analysts73.33
Price Target104.34 (28.15%)
Short Float %4.45%
Short Ratio1.81
Dividend
Industry RankSector Rank
Dividend Yield 0.58%
Yearly Dividend0.49
Dividend Growth(5Y)6.27%
DP13.42%
Div Incr Years1
Div Non Decr Years10
Ex-Date05-22 2025-05-22 (0.12)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.72%
Min EPS beat(2)3.4%
Max EPS beat(2)20.03%
EPS beat(4)4
Avg EPS beat(4)11.96%
Min EPS beat(4)3.4%
Max EPS beat(4)20.03%
EPS beat(8)8
Avg EPS beat(8)17.43%
EPS beat(12)12
Avg EPS beat(12)16.78%
EPS beat(16)16
Avg EPS beat(16)14.62%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)0.62%
Revenue beat(4)3
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-0.24%
Max Revenue beat(4)3.06%
Revenue beat(8)6
Avg Revenue beat(8)1.67%
Revenue beat(12)10
Avg Revenue beat(12)1.68%
Revenue beat(16)14
Avg Revenue beat(16)1.5%
PT rev (1m)-11.74%
PT rev (3m)-27.07%
EPS NQ rev (1m)2.53%
EPS NQ rev (3m)-30.9%
EPS NY rev (1m)-4.7%
EPS NY rev (3m)-18.77%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)-11.93%
Revenue NY rev (1m)-4.19%
Revenue NY rev (3m)-10.98%
Valuation
Industry RankSector Rank
PE 23.53
Fwd PE 17.73
P/S 4.51
P/FCF 21.52
P/OCF 15.84
P/B 4.68
P/tB 5.52
EV/EBITDA 17.26
EPS(TTM)3.46
EY4.25%
EPS(NY)4.59
Fwd EY5.64%
FCF(TTM)3.78
FCFY4.65%
OCF(TTM)5.14
OCFY6.31%
SpS18.07
BVpS17.39
TBVpS14.74
PEG (NY)58.24
PEG (5Y)9.52
Profitability
Industry RankSector Rank
ROA 15.57%
ROE 20.63%
ROCE 19.8%
ROIC 17.39%
ROICexc 20.85%
ROICexgc 25.05%
OM 20.83%
PM (TTM) 19.86%
GM 59.36%
FCFM 20.94%
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%
ROICexcg growth 3Y-36.99%
ROICexcg 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-Score8
Asset Turnover0.78
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 178.88%
Cap/Sales 7.51%
Interest Coverage 250
Cash Conversion 113.65%
Profit Quality 105.44%
Current Ratio 2.7
Quick Ratio 2.17
Altman-Z 10.67
F-Score8
WACC11.45%
ROIC/WACC1.52
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)19.72%
EPS 3Y-18.64%
EPS 5Y2.47%
EPS Q2Q%47.06%
EPS Next Y0.4%
EPS Next 2Y19.41%
EPS Next 3Y21.06%
EPS Next 5Y19.9%
Revenue 1Y (TTM)9.3%
Revenue growth 3Y-8.68%
Revenue growth 5Y4.21%
Sales Q2Q%14.31%
Revenue Next Year3.17%
Revenue Next 2Y10.58%
Revenue Next 3Y11.99%
Revenue Next 5Y10.96%
EBIT growth 1Y18.78%
EBIT growth 3Y-23.01%
EBIT growth 5Y0.38%
EBIT Next Year32.88%
EBIT Next 3Y29.24%
EBIT Next 5Y22.7%
FCF growth 1Y41.79%
FCF growth 3Y-21.12%
FCF growth 5Y1.31%
OCF growth 1Y40.14%
OCF growth 3Y-15.1%
OCF growth 5Y3.04%