Market Cap
US$23.4b
Last Updated
2021/01/20 00:23 UTC
Data Sources
Company Financials +
Executive Summary
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. More Details
Snowflake Analysis
Outstanding track record with excellent balance sheet.
Similar Companies
Share Price & News
How has Teradyne's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TER is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: TER's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
2.6%
TER
-0.009%
US Semiconductor
-0.4%
US Market
1 Year Return
96.5%
TER
51.3%
US Semiconductor
19.5%
US Market
Return vs Industry: TER exceeded the US Semiconductor industry which returned 51.3% over the past year.
Return vs Market: TER exceeded the US Market which returned 19.6% over the past year.
Shareholder returns
| TER | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | -0.009% | -0.4% |
| 30 Day | 16.6% | 6.8% | 2.3% |
| 90 Day | 52.7% | 18.7% | 12.7% |
| 1 Year | 97.6%96.5% | 53.9%51.3% | 22.3%19.5% |
| 3 Year | 196.8%190.4% | 102.0%91.4% | 44.4%34.8% |
| 5 Year | 639.3%609.5% | 361.7%316.8% | 128.7%103.3% |
Long-Term Price Volatility Vs. Market
How volatile is Teradyne's share price compared to the market and industry in the last 5 years?
Simply Wall St News
14 hours ago | Simply Wall St
Returns On Capital - An Important Metric For Teradyne (NASDAQ:TER)2 weeks ago | Simply Wall St
Teradyne (NASDAQ:TER) Could Easily Take On More Debt4 weeks ago | Simply Wall St
Are Robust Financials Driving The Recent Rally In Teradyne, Inc.'s (NASDAQ:TER) Stock?Valuation
Is Teradyne undervalued compared to its fair value and its price relative to the market?
32.83x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TER ($137.3) is trading above our estimate of fair value ($105.41)
Significantly Below Fair Value: TER is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TER is good value based on its PE Ratio (32.1x) compared to the US Semiconductor industry average (45.7x).
PE vs Market: TER is poor value based on its PE Ratio (32.1x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: TER is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: TER is overvalued based on its PB Ratio (11.4x) compared to the US Semiconductor industry average (4.4x).
Next Steps
Future Growth
How is Teradyne forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
10.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TER's forecast earnings growth (10.1% per year) is above the savings rate (2%).
Earnings vs Market: TER's earnings (10.1% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: TER's earnings are forecast to grow, but not significantly.
Revenue vs Market: TER's revenue (5.4% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: TER's revenue (5.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TER's Return on Equity is forecast to be high in 3 years time (31.7%)
Next Steps
Past Performance
How has Teradyne performed over the past 5 years?
39.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TER has high quality earnings.
Growing Profit Margin: TER's current net profit margins (23.6%) are higher than last year (22.5%).
Past Earnings Growth Analysis
Earnings Trend: TER's earnings have grown significantly by 39% per year over the past 5 years.
Accelerating Growth: TER's earnings growth over the past year (46.7%) exceeds its 5-year average (39% per year).
Earnings vs Industry: TER earnings growth over the past year (46.7%) exceeded the Semiconductor industry 20.8%.
Return on Equity
High ROE: TER's Return on Equity (35.8%) is considered high.
Next Steps
Financial Health
How is Teradyne's financial position?
Financial Position Analysis
Short Term Liabilities: TER's short term assets ($2.2B) exceed its short term liabilities ($671.8M).
Long Term Liabilities: TER's short term assets ($2.2B) exceed its long term liabilities ($771.1M).
Debt to Equity History and Analysis
Debt Level: TER's debt to equity ratio (20.4%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if TER's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: TER's debt is well covered by operating cash flow (203.1%).
Interest Coverage: TER's interest payments on its debt are well covered by EBIT (107.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Teradyne current dividend yield, its reliability and sustainability?
0.28%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TER's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: TER's dividend (0.29%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: TER is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: TER is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: TER is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TER's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Mark Jagiela (59 yo)
6.92yrs
Tenure
US$8,007,913
Compensation
Mr. Mark E. Jagiela has been the Chief Executive Officer of Teradyne Inc. since February 01, 2014 and has been its President since January 1, 2013 and served as its President of Semiconductor Test from 200...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD8.01M) is about average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.92yrs | US$8.01m | 0.13% $ 30.0m | |
| CFO, VP & Treasurer | 1.75yrs | US$4.44m | 0% $ 0 | |
| VP, General Counsel & Secretary | 11.75yrs | US$1.72m | 0.014% $ 3.2m | |
| President of LitePoint | 6.42yrs | US$2.23m | 0.013% $ 2.9m | |
| President of Industrial Automation Group & Acting President of Universal Robots | 0.25yr | US$1.82m | 0.0099% $ 2.3m | |
| Executive Vice President of Corporate Development | 2yrs | US$1.34m | 0.0093% $ 2.2m | |
| Vice President of Human Resources | no data | no data | no data | |
| President of Semiconductor Test Division | 0.25yr | no data | 0.00032% $ 74.7k | |
| President of Mobile Industrial Robots | 1yr | no data | no data | |
| Chief Executive Officer of Energid | no data | no data | no data | |
| President and CEO of AutoGuide Mobile Robots | 1yr | no data | no data | |
| Vice President of Finance | no data | no data | no data |
1.8yrs
Average Tenure
56yo
Average Age
Experienced Management: TER's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.92yrs | US$8.01m | 0.13% $ 30.0m | |
| Independent Director | 6.5yrs | US$276.15k | 0.010% $ 2.4m | |
| Independent Director | 14.25yrs | US$304.39k | 0.025% $ 5.9m | |
| Independent Director | 16.75yrs | US$276.15k | 0.015% $ 3.5m | |
| Independent Director | 15.83yrs | US$276.15k | 0.027% $ 6.2m | |
| Independent Chair of the Board | 6.67yrs | US$337.63k | 0.0019% $ 432.0k | |
| Independent Director | 10yrs | US$296.15k | 0.041% $ 9.6m | |
| Director | 0.17yr | no data | no data | |
| Independent Director | 3.5yrs | US$291.15k | 0.010% $ 2.3m |
6.9yrs
Average Tenure
66yo
Average Age
Experienced Board: TER's board of directors are considered experienced (6.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TER insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Teradyne, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Teradyne, Inc.
- Ticker: TER
- Exchange: NasdaqGS
- Founded: 1960
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Market Cap: US$23.352b
- Shares outstanding: 166.06m
- Website: https://www.teradyne.com
Number of Employees
Location
- Teradyne, Inc.
- 600 Riverpark Drive
- North Reading
- Massachusetts
- 1864
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TER | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Oct 1970 |
| TEY | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1970 |
| TEY | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Oct 1970 |
| 0LEF | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Oct 1970 |
| TER * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Oct 1970 |
Biography
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The company operates through Semiconductor Test, System Test, Industrial Automation, and Wireless Tes...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 00:23 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/27 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.