A Business at a Glance
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Teradyne, Inc. (“Teradyne”) was founded in 1960 and is a leading global provider of automated test equipment and robotics solutions. Teradyne's automated test systems are used to test semiconductors, wireless products, data storage, silicon photonics, and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne's robotics product offerings consist primarily of collaborative robotic arms and autonomous mobile robots used by global manufacturing, logistics and industrial customers to improve quality, increase manufacturing and material handling efficiency while reducing costs. In the first quarter of 2025, Teradyne identified opportunities for operational synergies amongst our production board test, defense and aerospace, and wireless test businesses leading to the creation of the Product Test division as a new segment effective March 2025.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.2B | 3.2B | 2.8B | 2.7B | 3.2B | 3.7B |
| Net Income | 554M | 554M | 542M | 449M | 716M | 1.0B |
| EPS | $3.47 | $3.47 | $3.32 | $2.73 | $4.22 | $5.53 |
| Free Cash Flow | 450M | 450M | 474M | 426M | 415M | 966M |
| ROIC | 20.4% | 27.2% | 29.9% | 39.1% | 76.6% | 201.1% |
| Gross Margin | 58.2% | 58.2% | 58.5% | 57.4% | 59.2% | 59.6% |
| Debt/Equity | 0.10 | 0.10 | 0.03 | 0.03 | 0.07 | 0.08 |
| Dividends/Share | $0.48 | $0.48 | $0.48 | $0.44 | $0.44 | $0.40 |
| Operating Income | 650M | 650M | 594M | 501M | 832M | 1.2B |
| Operating Margin | 20.4% | 20.4% | 21.1% | 18.7% | 26.4% | 32.4% |
| ROE | 19.8% | 19.7% | 19.2% | 17.8% | 29.2% | 39.6% |
| Shares Outstanding | 160M | 160M | 163M | 164M | 170M | 183M |
TERADYNE, INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
TERADYNE, INC trades at 106.7x trailing earnings, compared to its 15-year median P/E of 29.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 128.7x vs a median of 30.8x. The company's 5-year average ROIC is 43.2% with a gross margin of 58.6%. Total shareholder yield (dividends + buybacks) is 1.3%. At current prices, the estimated annualized return to fair value is +5.6%.
TERADYNE, INC (TER) has a current P/E ratio of 106.7, compared to its historical median P/E of 29.2. The stock is currently considered Expensive based on its historical valuation range.
TERADYNE, INC (TER) has a 5-year average return on invested capital (ROIC) of 43.2%. This indicates strong capital allocation and a potential competitive advantage.
TERADYNE, INC (TER) has a market capitalization of $59.1B. It is classified as a large-cap stock.
Yes, TERADYNE, INC (TER) pays a dividend with a trailing twelve-month yield of 0.13%. The company also returns capital through share buybacks, with a buyback yield of 1.19%.
Based on historical P/E analysis, TERADYNE, INC (TER) appears expensive. The current P/E of 106.7 is 265% above its historical median of 29.2. The estimated fair value CAGR (P/E method) is 6.1%.
TERADYNE, INC (TER) operates in the Instruments For Meas & Testing Of Electricity & Elec Signals industry, within the Technology sector.
TERADYNE, INC (TER) reported annual revenue of $3.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
TERADYNE, INC (TER) has a net profit margin of 17.4%. This is a healthy margin.
TERADYNE, INC (TER) generated $450 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TERADYNE, INC (TER) has a debt-to-equity ratio of 0.10. This indicates a conservatively financed balance sheet.
TERADYNE, INC (TER) reported earnings per share (EPS) of $3.47 in its most recent fiscal year.
TERADYNE, INC (TER) has a return on equity (ROE) of 19.7%. This indicates the company generates strong returns for shareholders.
TERADYNE, INC (TER) has a 5-year average gross margin of 58.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for TERADYNE, INC (TER), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TERADYNE, INC (TER) has a book value per share of $17.51, based on its most recent annual SEC filing.