Teradyne
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Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The last earnings update was 37 days ago. More info.
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TER Share Price and Events
7 Day Returns
1 Year Returns
TER Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Teradyne (TER) | -2.6% | -4.1% | 9% | 11.9% | 130.8% | 126.7% |
| US Semiconductor | -1.2% | -3.9% | -5.5% | -12.1% | 69.8% | 78.8% |
| US Market | 0.5% | -0.1% | 1% | 0.8% | 37.5% | 37.5% |
1 Year Return vs Industry and Market
- TER outperformed the Semiconductor industry which returned -12.1% over the past year.
- TER outperformed the Market in United States of America which returned 0.8% over the past year.
Value
Is Teradyne undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Teradyne
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Teradyne.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 13 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Semiconductor Unlevered Beta | Simply Wall St/ S&P Global | 1.23 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.226 (1 + (1- 21%) (5.81%)) |
1.189 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.19 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.189 * 5.96%) |
9.82% |
Discounted Cash Flow Calculation for NasdaqGS:TER using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Teradyne is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.82%) |
|
|---|---|---|---|
| 2019 | 312.70 | Analyst x5 | 284.75 |
| 2020 | 425.93 | Analyst x5 | 353.17 |
| 2021 | 403.02 | Est @ -5.38% | 304.29 |
| 2022 | 391.14 | Est @ -2.95% | 268.92 |
| 2023 | 386.28 | Est @ -1.24% | 241.83 |
| 2024 | 386.08 | Est @ -0.05% | 220.10 |
| 2025 | 389.10 | Est @ 0.78% | 201.99 |
| 2026 | 394.42 | Est @ 1.37% | 186.44 |
| 2027 | 401.43 | Est @ 1.78% | 172.79 |
| 2028 | 409.71 | Est @ 2.06% | 160.59 |
| Present value of next 10 years cash flows | $2,394.88 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $409.71 × (1 + 2.73%) ÷ (9.82% – 2.73%) |
$5,937.42 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $5,937.42 ÷ (1 + 9.82%)10 |
$2,327.18 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $2,394.88 + $2,327.18 |
$4,722.06 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $4,722.06 / 171.40 |
$27.55 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $27.55 |
| Current discount | Discount to share price of
$44.03
= -1 x ($44.03 - $27.55) / $27.55 |
-59.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Teradyne is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Teradyne's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Teradyne's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $2.60 |
| NasdaqGS:TER Share Price ** | NasdaqGS (2019-06-14) in USD | $44.03 |
| United States of America Semiconductor Industry PE Ratio | Median Figure of 69 Publicly-Listed Semiconductor Companies | 22.82x |
| United States of America Market PE Ratio | Median Figure of 3,094 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Teradyne.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:TER Share Price ÷ EPS (both in USD) = 44.03 ÷ 2.60 |
16.93x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Teradyne is good value based on earnings compared to the US Semiconductor industry average.
- Teradyne is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Teradyne's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 16.93x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts |
6.1%per year |
| United States of America Semiconductor Industry PEG Ratio | Median Figure of 63 Publicly-Listed Semiconductor Companies | 0.92x |
| United States of America Market PEG Ratio | Median Figure of 2,125 Publicly-Listed Companies | 1.52x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 16.93x ÷ 6.1% |
2.79x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Teradyne is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Teradyne's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $8.53 |
| NasdaqGS:TER Share Price * | NasdaqGS (2019-06-14) in USD | $44.03 |
| United States of America Semiconductor Industry PB Ratio | Median Figure of 107 Publicly-Listed Semiconductor Companies | 2.51x |
| United States of America Market PB Ratio | Median Figure of 5,244 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:TER Share Price ÷ Book Value per Share (both in USD) = 44.03 ÷ 8.53 |
5.16x |
* Primary Listing of Teradyne.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Teradyne is overvalued based on assets compared to the US Semiconductor industry average.
Value checks
We assess Teradyne's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check) Teradyne has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Teradyne expected to perform in the next 1 to 3 years based on estimates from 13 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Teradyne's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Teradyne's earnings growth is positive but not above the United States of America market average.
- Teradyne's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:TER Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts | 6.1% |
| NasdaqGS:TER Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts | 11.9% |
| United States of America Semiconductor Industry Earnings Growth Rate | Market Cap Weighted Average | 18.4% |
| United States of America Semiconductor Industry Revenue Growth Rate | Market Cap Weighted Average | 7.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 2,700 | 487 | 3 | |
| 2020-12-31 | 2,420 | 571 | 446 | 13 |
| 2019-12-31 | 2,111 | 424 | 397 | 12 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 2,107 | 577 | 474 |
| 2018-12-31 | 2,101 | 477 | 452 |
| 2018-09-30 | 2,061 | 438 | 202 |
| 2018-07-01 | 1,997 | 507 | 186 |
| 2018-04-01 | 2,167 | 606 | 259 |
| 2017-12-31 | 2,137 | 626 | 258 |
| 2017-10-01 | 2,037 | 516 | 430 |
| 2017-07-02 | 1,944 | 408 | 390 |
| 2017-04-02 | 1,779 | 358 | -8 |
| 2016-12-31 | 1,753 | 455 | -43 |
| 2016-10-02 | 1,692 | 458 | -110 |
| 2016-07-03 | 1,747 | 436 | -103 |
| 2016-04-03 | 1,728 | 411 | 224 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
All data from Teradyne Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 2.85 | 2.85 | 2.85 | 1.00 |
| 2020-12-31 | 2.66 | 2.95 | 2.45 | 5.00 |
| 2019-12-31 | 2.28 | 2.40 | 2.18 | 5.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 2.60 |
| 2018-12-31 | 2.41 |
| 2018-09-30 | 1.05 |
| 2018-07-01 | 0.95 |
| 2018-04-01 | 1.32 |
| 2017-12-31 | 1.30 |
| 2017-10-01 | 2.16 |
| 2017-07-02 | 1.95 |
| 2017-04-02 | -0.04 |
| 2016-12-31 | -0.21 |
| 2016-10-02 | -0.54 |
| 2016-07-03 | -0.50 |
| 2016-04-03 | 1.07 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Teradyne's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Teradyne has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Teradyne performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Teradyne has delivered over 20% year on year earnings growth in the past 5 years.
- Teradyne's 1-year earnings growth exceeds its 5-year average (82.7% vs 23.2%)
- Teradyne's earnings growth has exceeded the US Semiconductor industry average in the past year (82.7% vs 22.6%).
Earnings and Revenue History
All data from Teradyne Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 2,107.43 | 473.94 | 418.16 | 284.59 |
| 2018-12-31 | 2,100.80 | 451.78 | 406.65 | 282.21 |
| 2018-09-30 | 2,060.66 | 202.07 | 393.22 | 278.67 |
| 2018-07-01 | 1,997.19 | 185.51 | 377.50 | 278.61 |
| 2018-04-01 | 2,167.16 | 259.45 | 368.20 | 285.54 |
| 2017-12-31 | 2,136.61 | 257.69 | 362.49 | 287.11 |
| 2017-10-01 | 2,037.18 | 429.96 | 355.12 | 286.19 |
| 2017-07-02 | 1,944.28 | 390.34 | 349.09 | 280.60 |
| 2017-04-02 | 1,779.17 | -8.19 | 340.40 | 274.44 |
| 2016-12-31 | 1,753.25 | -43.42 | 332.44 | 273.06 |
| 2016-10-02 | 1,691.71 | -110.41 | 335.01 | 276.01 |
| 2016-07-03 | 1,747.23 | -102.75 | 333.70 | 278.64 |
| 2016-04-03 | 1,728.17 | 223.68 | 329.35 | 278.36 |
| 2015-12-31 | 1,639.58 | 206.48 | 322.51 | 276.05 |
| 2015-10-04 | 1,644.37 | 103.31 | 317.75 | 300.50 |
| 2015-07-05 | 1,656.39 | 114.80 | 313.34 | 298.42 |
| 2015-04-05 | 1,669.22 | 113.13 | 313.75 | 296.00 |
| 2014-12-31 | 1,647.82 | 81.27 | 329.12 | 275.64 |
| 2014-09-28 | 1,609.89 | 207.43 | 291.48 | 277.07 |
| 2014-06-29 | 1,565.25 | 193.94 | 291.33 | 274.03 |
| 2014-03-30 | 1,468.58 | 159.29 | 283.08 | 268.39 |
| 2013-12-31 | 1,427.93 | 164.95 | 279.56 | 264.06 |
| 2013-09-29 | 1,391.04 | 126.06 | 279.33 | 262.25 |
| 2013-06-30 | 1,421.05 | 145.24 | 275.44 | 257.28 |
| 2013-03-31 | 1,540.45 | 190.07 | 278.27 | 257.34 |
| 2012-12-31 | 1,656.75 | 217.05 | 277.02 | 255.87 |
| 2012-09-30 | 1,705.34 | 362.82 | 272.66 | 249.43 |
| 2012-07-01 | 1,586.33 | 330.89 | 258.41 | 231.38 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Teradyne has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Teradyne used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
- Teradyne has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Teradyne's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Teradyne has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Teradyne's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Teradyne's finances.
The net worth of a company is the difference between its assets and liabilities.
- Teradyne is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Teradyne's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 4.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Teradyne Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 1,470.23 | 438.83 | 904.82 |
| 2018-12-31 | 1,522.35 | 379.98 | 1,116.85 |
| 2018-09-30 | 1,667.76 | 376.42 | 1,232.43 |
| 2018-07-01 | 1,739.94 | 372.90 | 1,192.69 |
| 2018-04-01 | 1,904.98 | 369.42 | 1,498.40 |
| 2017-12-31 | 1,953.65 | 365.99 | 1,777.82 |
| 2017-10-01 | 2,109.90 | 362.60 | 1,636.51 |
| 2017-07-02 | 2,048.65 | 359.25 | 1,407.69 |
| 2017-04-02 | 1,919.85 | 355.94 | 1,220.32 |
| 2016-12-31 | 1,828.66 | 352.67 | 1,178.91 |
| 2016-10-02 | 1,782.14 | 0.00 | 896.44 |
| 2016-07-03 | 1,745.58 | 0.00 | 823.25 |
| 2016-04-03 | 1,995.90 | 0.00 | 729.36 |
| 2015-12-31 | 1,965.79 | 0.00 | 742.40 |
| 2015-10-04 | 2,045.61 | 0.00 | 819.60 |
| 2015-07-05 | 2,074.22 | 0.00 | 752.73 |
| 2015-04-05 | 2,057.22 | 0.00 | 868.16 |
| 2014-12-31 | 2,078.98 | 0.00 | 828.04 |
| 2014-09-28 | 2,189.91 | 0.00 | 806.51 |
| 2014-06-29 | 2,101.47 | 0.00 | 743.06 |
| 2014-03-30 | 1,989.83 | 0.00 | 694.78 |
| 2013-12-31 | 1,985.09 | 186.66 | 928.52 |
| 2013-09-29 | 1,951.50 | 183.57 | 957.20 |
| 2013-06-30 | 1,866.49 | 179.57 | 728.75 |
| 2013-03-31 | 1,791.27 | 176.84 | 710.00 |
| 2012-12-31 | 1,778.36 | 173.39 | 770.44 |
| 2012-09-30 | 1,785.24 | 171.42 | 830.54 |
| 2012-07-01 | 1,685.43 | 167.81 | 695.00 |
- Teradyne's level of debt (26.1%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0% vs 26.1% today).
- Debt is well covered by operating cash flow (150.4%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 373.7x coverage).
Financial health checks
We assess Teradyne's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Teradyne has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Teradyne's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Teradyne
shares you are expected to receive
$16
in your first year as a dividend.
Dividend Amount
- Teradyne's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
- Teradyne's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| United States of America Semiconductor Industry Average Dividend Yield | Market Cap Weighted Average of 32 Stocks | 2.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2011 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.47 | 3.00 |
| 2020-12-31 | 0.40 | 5.00 |
| 2019-12-31 | 0.37 | 5.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-07 | 0.360 | 0.803 |
| 2019-01-23 | 0.360 | 0.876 |
| 2018-11-13 | 0.360 | 1.097 |
| 2018-08-23 | 0.360 | 0.995 |
| 2018-05-08 | 0.360 | 0.909 |
| 2018-04-24 | 0.360 | 1.028 |
| 2018-03-01 | 0.360 | 0.792 |
| 2018-01-24 | 0.360 | 0.817 |
| 2017-11-14 | 0.280 | 0.649 |
| 2017-08-24 | 0.280 | 0.733 |
| 2017-05-09 | 0.280 | 0.828 |
| 2017-04-26 | 0.280 | 0.790 |
| 2017-03-01 | 0.280 | 0.908 |
| 2017-01-25 | 0.280 | 0.974 |
| 2016-11-15 | 0.240 | 0.943 |
| 2016-08-24 | 0.240 | 1.107 |
| 2016-05-10 | 0.240 | 1.212 |
| 2016-04-27 | 0.240 | 1.258 |
| 2015-11-18 | 0.240 | 1.197 |
| 2015-08-21 | 0.240 | 1.295 |
| 2015-05-12 | 0.240 | 1.218 |
| 2015-05-08 | 0.240 | 1.168 |
| 2015-04-30 | 0.240 | 1.209 |
| 2014-11-19 | 0.240 | 1.249 |
| 2014-08-21 | 0.240 | 1.267 |
| 2014-01-22 | 0.240 | 1.260 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Teradyne has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Teradyne only paid a dividend in the past 5 years.
Income/ dividend checks
We assess Teradyne's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Teradyne afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Teradyne has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $7,172,691 |
| AGE | 57 |
| TENURE AS CEO | 5.3 years |
CEO Bio
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 2003 to February 8, 2016. Mr. Jagiela served as the President of the Semiconductor Test Division at Teradyne Inc. and Amphenol TCS (Teradyne Connection Systems) since July 2003. He served as a Vice President of Teradyne Inc. from 2001 to 2013. He joined Teradyne Inc. in 1982 and served as its Design Engineer in what is the System-On-a-Chip (SOC) test systems group. Mr. Jagiela served as General Manager of Teradyne's Japan Division from 1989 to 1999. While there, he oversaw the move of the divisional headquarters from Tokyo to Kumamoto, a significant strengthening of the division's engineering and manufacturing capability and the development of a successful strategy in image sensor test. Upon returning to the U.S. in 1999, he served as Engineering Manager of VLSI test and he later served as General Manager of that group. For the last two years, he has held overall marketing and business unit management responsibility for Semiconductor Test. He has been a Director of Nextest Systems Corporations ince January 24 , 2008. He has been Director of Teradyne Inc. since February 1, 2014. Mr. Jagiela holds a B.S. in Electrical Engineering from the University of Michigan in 1982.
CEO Compensation
- Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
- Mark's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Teradyne management team in years:
- The tenure for the Teradyne management team is about average.
Management Team
Mark Jagiela
President
$7M
57
5.3 yrs
Charles Gray
VP, General Counsel & Secretary
$2M
56
10.2 yrs
Greg Beecher
VP & Senior Advisor
$3M
60
0.2 yrs
Walter Vahey
Executive Vice President of Business Development
$1M
53
1.5 yrs
Brad Robbins
President
$1M
59
4.8 yrs
Gregory Smith
President of Semiconductor Test
$2M
54
3.3 yrs
Sanjay Mehta
CFO & VP
0.2 yrs
Michal Kimeldorfer-Rabinowitz
Vice President of Human Resources
Jürgen von Hollen
President of Universal Robots
1.6 yrs
Amy McAndrews
Vice President of Finance
46
Board of Directors Tenure
Average tenure and age of the Teradyne board of directors in years:
- The tenure for the Teradyne board of directors is about average.
Board of Directors
Roy Vallee
Independent Chair of the Board
$300K
65
5.1 yrs
Mark Jagiela
President
$7M
57
5.3 yrs
Ed Gillis
Director
$270K
69
12.7 yrs
Tim Guertin
Director
$265K
68
8.4 yrs
Marilyn Matz
Director
$255K
64
1.9 yrs
Mike Bradley
Director
$245K
69
15.2 yrs
Paul Tufano
Director
$245K
64
14.3 yrs
Mercedes Johnson
Director
$245K
64
4.9 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 30. Apr 19 | Sell | Michael Bradley | Individual | 29. Apr 19 | 29. Apr 19 | -27,049 | $48.95 | $-1,324,049 | ||
| 30. Apr 19 | Sell | Bradford Robbins | Individual | 26. Apr 19 | 26. Apr 19 | -10,000 | $49.48 | $-494,596 | ||
| 30. Apr 19 | Sell | Gregory Beecher | Individual | 25. Apr 19 | 25. Apr 19 | -20,625 | $47.91 | $-988,041 | ||
| 15. Feb 19 | Sell | Mark Jagiela | Individual | 13. Feb 19 | 13. Feb 19 | -36,529 | $39.20 | $-1,431,937 | ||
| 05. Feb 19 | Sell | Gregory Smith | Individual | 04. Feb 19 | 04. Feb 19 | -11,210 | $36.85 | $-412,796 | ||
| 01. Feb 19 | Sell | Gregory Beecher | Individual | 31. Jan 19 | 31. Jan 19 | -26,778 | $36.98 | $-989,021 | ||
| 01. Feb 19 | Sell | Charles Gray | Individual | 31. Jan 19 | 31. Jan 19 | -23,584 | $36.69 | $-865,297 | ||
Management checks
We assess Teradyne's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Teradyne has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Should You Ramp Up Holdings In Teradyne, Inc. (NASDAQ:TER)?
Below I take a look at three key features of what makes a robust defensive stock investment: its size, financial health and track record. … This continuous market outperformance demonstrates a strong track record of delivering robust returns over many years, raising my confidence in Teradyne as a long-term hold. … The intrinsic value infographic in our free research report helps visualize whether TER is currently mispriced by the market.
Simply Wall St - – Full articleHow Should Investors Feel About Teradyne, Inc.'s (NASDAQ:TER) CEO Pay?
Check out our latest analysis for Teradyne How Does Mark Jagiela's Compensation Compare With Similar Sized Companies? … So Mark Jagiela receives a similar amount to the median CEO pay, amongst the companies we looked at. … Remuneration for Mark Jagiela is close enough to the median pay for a CEO of a similar sized company.
Simply Wall St - – Full articleWhy We Like Teradyne, Inc.’s (NASDAQ:TER) 23% Return On Capital Employed
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleHere's Why We Think Teradyne (NASDAQ:TER) Is Well Worth Watching
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … It seems Teradyne is pretty stable, since revenue and EBIT margins are pretty flat year on year.
Simply Wall St - – Full articleWhat Are Analysts Saying About Teradyne, Inc.'s (NASDAQ:TER) Growth?
Looking at Teradyne, Inc.'s (NASDAQ:TER) earnings update in December 2018,. … the higher past 5-year average growth rate of 17%
Simply Wall St - – Full articleTeradyne, Inc. (NASDAQ:TER) Insiders Have Been Selling
As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … That means that even when the share price was below the current price of US$41.78, an insider wanted to cash in some shares. … It's not ideal to see that insiders have sold at around the current price
Simply Wall St - – Full articleDoes Teradyne, Inc. (NASDAQ:TER) Have A Good P/E Ratio?
To keep it practical, we'll show how Teradyne, Inc.'s (NASDAQ:TER) P/E ratio could help you assess the value on offer. … Teradyne has a price to earnings ratio of 16.44, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleAt US$38.75, Is Teradyne, Inc. (NASDAQ:TER) Worth Looking At Closely?
led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, what if the stock is still a bargain.
Simply Wall St - – Full articleIntroducing Teradyne, The Stock That Zoomed 108% In The Last Three Years
(NASDAQ:TER) share price has soared 108% in the last three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Teradyne was able to grow its EPS at 35% per year over three years, sending the share price higher.
Simply Wall St - – Full articleShould You Be Holding Teradyne, Inc. (NASDAQ:TER)?
Help shape the future of investing tools and receive a $20 prize! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a
Simply Wall St - – Full articleCompany Info
Description
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. Its Semiconductor Test segment offers semiconductor test products and services for wafer level and device package testing in automotive, industrial, communications, consumer, computer and electronic game, and other applications. This segment offers FLEX test platform systems; J750 test system to address the highest volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for use by semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. This segment serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and outsourced semiconductor assembly and test providers. The company’s System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems. Its Industrial Automation segment provides collaborative robots for manufacturing and light industrial customers. The company’s Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices, smart phones, tablets, notebooks, laptops, peripherals, and Internet-of-Things (IoT) devices under the LitePoint brand name. This segment offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE-FDD, TD_LTE, and LTE-A technologies; modular wireless test instruments for design verification test and production testing of wireless components; lab-in-a-box zSeries solution for design verification of RF power amplifier and smart device RF front end modules; and test software for wireless chipsets. The company was founded in 1960 and is headquartered in North Reading, Massachusetts.
Details
| Name: | Teradyne, Inc. |
| TER | |
| Exchange: | NasdaqGS |
| Founded: | 1960 |
| $7,546,539,550 | |
| 171,395,402 | |
| Website: | http://www.teradyne.com |
| Address: |
Teradyne, Inc. 600 Riverpark Drive, North Reading, Massachusetts, 01864, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | TER | Common Stock | Nasdaq Global Select | US | USD | 20. Oct 1970 | |
| DB | TEY | Common Stock | Deutsche Boerse AG | DE | EUR | 20. Oct 1970 | |
| LSE | 0LEF | Common Stock | London Stock Exchange | GB | USD | 20. Oct 1970 | |
| BMV | TER * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 20. Oct 1970 |
Number of employees
Current staff
Industry
| Semiconductor Equipment | |
| Semiconductors |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/16 23:45 |
| End of day share price update: | 2019/06/14 00:00 |
| Last estimates confirmation: | 2019/06/12 |
| Last earnings filing: | 2019/05/10 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
