TERADYNE INC (TEY.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:TEY • US8807701029
205.75 EUR
-1.65 (-0.8%)
Last: Jan 29, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to TEY. TEY was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. TEY is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TEY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year TEY was profitable.
- In the past year TEY had a positive cash flow from operations.
- In the past 5 years TEY has always been profitable.
- TEY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TEY's Return On Assets of 11.18% is in line compared to the rest of the industry. TEY outperforms 59.42% of its industry peers.
- TEY's Return On Equity of 16.31% is in line compared to the rest of the industry. TEY outperforms 52.17% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.93%, TEY is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
- TEY had an Average Return On Invested Capital over the past 3 years of 19.67%. This is significantly above the industry average of 14.31%.
- The 3 year average ROIC (19.67%) for TEY 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
- The Profit Margin of TEY (15.49%) is comparable to the rest of the industry.
- TEY's Profit Margin has been stable in the last couple of years.
- TEY has a Operating Margin of 18.84%. This is comparable to the rest of the industry: TEY outperforms 52.17% of its industry peers.
- TEY's Operating Margin has declined in the last couple of years.
- TEY has a better Gross Margin (58.92%) than 78.26% of its industry peers.
- In the last couple of years the Gross Margin of TEY 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEY is still creating some value.
- Compared to 1 year ago, TEY has more shares outstanding
- TEY has less shares outstanding than it did 5 years ago.
- TEY 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
- TEY has an Altman-Z score of 20.20. This indicates that TEY is financially healthy and has little risk of bankruptcy at the moment.
- TEY has a Altman-Z score of 20.20. This is amongst the best in the industry. TEY outperforms 91.30% of its industry peers.
- TEY 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.
- Looking at the Debt to FCF ratio, with a value of 0.44, TEY belongs to the top of the industry, outperforming 85.51% of the companies in the same industry.
- A Debt/Equity ratio of 0.07 indicates that TEY is not too dependend on debt financing.
- TEY has a Debt to Equity ratio of 0.07. This is in the better half of the industry: TEY outperforms 72.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 20.2 |
ROIC/WACC1.36
WACC10.96%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that TEY should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.76, TEY is not doing good in the industry: 75.36% of the companies in the same industry are doing better.
- TEY has a Quick Ratio of 1.39. This is a normal value and indicates that TEY is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of TEY (1.39) is worse than 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
- TEY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.96%.
- Measured over the past 5 years, TEY shows a small growth in Earnings Per Share. The EPS has been growing by 2.47% on average per year.
- Looking at the last year, TEY shows a small growth in Revenue. The Revenue has grown by 4.46% in the last year.
- TEY 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
- TEY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.65% yearly.
- Based on estimates for the next years, TEY will show a quite strong growth in Revenue. The Revenue will grow by 12.60% on average per year.
EPS Next Y10.61%
EPS Next 2Y27.87%
EPS Next 3Y28.37%
EPS Next 5Y22.65%
Revenue Next Year9.52%
Revenue Next 2Y16.25%
Revenue Next 3Y15.93%
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
- TEY is valuated quite expensively with a Price/Earnings ratio of 78.83.
- 81.16% of the companies in the same industry are cheaper than TEY, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, TEY is valued quite expensively.
- A Price/Forward Earnings ratio of 46.77 indicates a quite expensive valuation of TEY.
- Based on the Price/Forward Earnings ratio, TEY is valued a bit more expensive than 79.71% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TEY to the average of the S&P500 Index (25.72), we can say TEY is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.83 | ||
| Fwd PE | 46.77 |
4.2 Price Multiples
- TEY's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. TEY is more expensive than 85.51% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEY indicates a slightly more expensive valuation: TEY is more expensive than 63.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.42 | ||
| EV/EBITDA | 57.75 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- TEY has a very decent profitability rating, which may justify a higher PE ratio.
- TEY's earnings are expected to grow with 28.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.43
PEG (5Y)31.9
EPS Next 2Y27.87%
EPS Next 3Y28.37%
5. Dividend
5.1 Amount
- TEY has a yearly dividend return of 0.21%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.74, TEY has a dividend in line with its industry peers.
- With a Dividend Yield of 0.21, TEY pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
5.2 History
- On average, the dividend of TEY grows each year by 6.27%, which is quite nice.
Dividend Growth(5Y)6.27%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 17.39% of the earnings are spent on dividend by TEY. This is a low number and sustainable payout ratio.
- TEY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.39%
EPS Next 2Y27.87%
EPS Next 3Y28.37%
TERADYNE INC / TEY.DE FAQ
Can you provide the ChartMill fundamental rating for TERADYNE INC?
ChartMill assigns a fundamental rating of 5 / 10 to TEY.DE.
What is the valuation status for TEY stock?
ChartMill assigns a valuation rating of 1 / 10 to TERADYNE INC (TEY.DE). This can be considered as Overvalued.
Can you provide the profitability details for TERADYNE INC?
TERADYNE INC (TEY.DE) has a profitability rating of 6 / 10.
What is the financial health of TERADYNE INC (TEY.DE) stock?
The financial health rating of TERADYNE INC (TEY.DE) is 7 / 10.
How sustainable is the dividend of TERADYNE INC (TEY.DE) stock?
The dividend rating of TERADYNE INC (TEY.DE) is 4 / 10 and the dividend payout ratio is 17.39%.