Market Cap
US$21.5b
Last Updated
2021/04/13 22:57 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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: TER's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
-2.6%
TER
0.5%
US Semiconductor
1.3%
US Market
1 Year Return
103.8%
TER
79.5%
US Semiconductor
53.9%
US Market
Return vs Industry: TER exceeded the US Semiconductor industry which returned 86.2% over the past year.
Return vs Market: TER exceeded the US Market which returned 57.9% over the past year.
Shareholder returns
| TER | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.6% | 0.5% | 1.3% |
| 30 Day | 14.3% | 9.2% | 2.8% |
| 90 Day | -5.2% | 7.7% | 6.6% |
| 1 Year | 104.7%103.8% | 82.3%79.5% | 56.6%53.9% |
| 3 Year | 194.4%188.5% | 118.4%107.1% | 62.7%52.3% |
| 5 Year | 548.0%523.5% | 344.7%301.5% | 120.5%95.9% |
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
1 week ago | Simply Wall St
Are Strong Financial Prospects The Force That Is Driving The Momentum In Teradyne, Inc.'s NASDAQ:TER) Stock?3 weeks ago | Simply Wall St
Is It Too Late To Consider Buying Teradyne, Inc. (NASDAQ:TER)?1 month ago | Simply Wall St
Does Teradyne (NASDAQ:TER) Deserve A Spot On Your Watchlist?Valuation
Is Teradyne undervalued compared to its fair value and its price relative to the market?
27.33x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TER ($129) is trading above our estimate of fair value ($91.38)
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 (27.3x) compared to the US Semiconductor industry average (39.6x).
PE vs Market: TER is poor value based on its PE Ratio (27.3x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: TER is poor value based on its PEG Ratio (4.7x)
Price to Book Ratio
PB vs Industry: TER is overvalued based on its PB Ratio (9.7x) compared to the US Semiconductor industry average (5.1x).
Future Growth
How is Teradyne forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
5.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TER's forecast earnings growth (5.8% per year) is above the savings rate (2%).
Earnings vs Market: TER's earnings (5.8% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: TER's earnings are forecast to grow, but not significantly.
Revenue vs Market: TER's revenue (6.3% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: TER's revenue (6.3% 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 (36%)
Past Performance
How has Teradyne performed over the past 5 years?
39.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TER has high quality earnings.
Growing Profit Margin: TER's current net profit margins (25.1%) are higher than last year (20.4%).
Past Earnings Growth Analysis
Earnings Trend: TER's earnings have grown significantly by 39.5% per year over the past 5 years.
Accelerating Growth: TER's earnings growth over the past year (67.5%) exceeds its 5-year average (39.5% per year).
Earnings vs Industry: TER earnings growth over the past year (67.5%) exceeded the Semiconductor industry 30%.
Return on Equity
High ROE: TER's Return on Equity (35.5%) is considered high.
Financial Health
How is Teradyne's financial position?
Financial Position Analysis
Short Term Liabilities: TER's short term assets ($2.4B) exceed its short term liabilities ($700.9M).
Long Term Liabilities: TER's short term assets ($2.4B) exceed its long term liabilities ($744.5M).
Debt to Equity History and Analysis
Debt Level: TER's debt to equity ratio (18.6%) 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 (211.9%).
Interest Coverage: TER's interest payments on its debt are well covered by EBIT (49.6x coverage).
Balance Sheet
Dividend
What is Teradyne current dividend yield, its reliability and sustainability?
0.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TER's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: TER's dividend (0.31%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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?
1.6yrs
Average management tenure
CEO
Mark Jagiela (59 yo)
7.17yrs
Tenure
US$10,366,962
Compensation
Mr. Mark E. Jagiela has been the Chief Executive Officer of Teradyne Inc. since February 01, 2014, President since January 1, 2013 and served as its President of Semiconductor Test from 2003 to February 8,...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD10.37M) is about average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: TER's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
Experienced Board: TER's board of directors are considered experienced (7.2 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$21.487b
- Shares outstanding: 166.56m
- Website: https://www.teradyne.com
Number of Employees
Location
- Teradyne, Inc.
- 600 Riverpark Drive
- North Reading
- Massachusetts
- 1864
- United States
Listings
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 | 2021/04/13 22:57 |
| End of Day Share Price | 2021/04/13 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.