Market Cap
US$10.7b
Last Updated
2019/11/20 23:47 UTC
Data Sources
Company Financials +
Executive Summary
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide.
Snowflake
Fundamentals
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.8%
TER
-0.9%
US Semiconductor
0.5%
US Market
1 Year Return
78.3%
TER
38.3%
US Semiconductor
16.1%
US Market
Return vs Industry: TER exceeded the US Semiconductor industry which returned 38.3% over the past year.
Return vs Market: TER exceeded the US Market which returned 16.1% over the past year.
Shareholder returns
| TER | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.8% | -0.9% | 0.5% |
| 30 Day | 6.3% | 5.9% | 3.9% |
| 90 Day | 19.0% | 13.1% | 6.6% |
| 1 Year | 79.8%78.3% | 41.1%38.3% | 18.7%16.1% |
| 3 Year | 163.0%156.4% | 81.8%71.5% | 47.2%37.7% |
| 5 Year | 235.9%219.6% | 129.1%107.0% | 61.5%43.7% |
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 day ago | Simply Wall St
Should You Be Adding Teradyne (NASDAQ:TER) To Your Watchlist Today?4 weeks ago | Simply Wall St
Is Teradyne (NASDAQ:TER) A Risky Investment?1 month ago | Simply Wall St
At US$61.18, Is It Time To Put Teradyne, Inc. (NASDAQ:TER) On Your Watch List?Valuation
Is Teradyne undervalued compared to its fair value and its price relative to the market?
22.77x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TER ($63.85) is trading above our estimate of fair value ($40.84)
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 (22.8x) compared to the Semiconductor industry average (29.7x).
PE vs Market: TER is poor value based on its PE Ratio (22.8x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: TER is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: TER is overvalued based on its PB Ratio (7.3x) compared to the US Semiconductor industry average (2.9x).
Next Steps
Future Growth
How is Teradyne forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
11.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TER's forecast earnings growth (11.5% per year) is above the savings rate (2.7%).
Earnings vs Market: TER's earnings (11.5% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: TER's earnings are forecast to grow, but not significantly.
Revenue vs Market: TER's revenue (11.2% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: TER's revenue (11.2% 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 very high in 3 years time (45.2%).
Next Steps
Past Performance
How has Teradyne performed over the past 5 years?
32.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TER has high quality earnings.
Growing Profit Margin: TER's current net profit margins (22.5%) are higher than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: TER's earnings have grown significantly by 32.7% per year over the past 5 years.
Accelerating Growth: TER's earnings growth over the past year (140.8%) exceeds its 5-year average (32.7% per year).
Earnings vs Industry: TER earnings growth over the past year (140.8%) exceeded the Semiconductor industry -14.2%.
Return on Equity
High ROE: TER's Return on Equity (32.8%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Teradyne's financial position?
Financial Position Analysis
Short Term Liabilities: TER's short term assets ($1.7B) exceeds its short term liabilities ($493.7M)
Long Term Liabilities: TER's short term assets ($1.7B) exceeds its long term liabilities (722.4M)
Debt to Equity History and Analysis
Debt Level: TER's debt to equity ratio (26.4%) 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 (140.4%).
Interest Coverage: TER's interest payments on its debt are well covered by EBIT (186.9x coverage).
Balance Sheet
Inventory Level: TER has a high level of physical assets or inventory.
Debt Coverage by Assets: TER's debt is covered by short term assets (assets are 4.2x debt).
Next Steps
Dividend
What is Teradyne's current dividend yield, its reliability and sustainability?
0.56%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Teradyne before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TER's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: TER's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (3.65%).
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
What is the CEO of Teradyne's salary, the management and board of directors tenure and is there insider trading?
3.8yrs
Average management tenure
CEO
Mark Jagiela (58yo)
5.8yrs
Tenure
US$7,172,691
Compensation
Mr. Mark E. Jagiela has been the Chief Executive Officer of Teradyne Inc. since February 01, 2014 and has been its President since January 1, 2013 and served as its President of Semiconductor Test from 200 ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD7.17M) is below average for companies of similar size in the US market ($USD11.01M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.8yrs
Average Tenure
56yo
Average Age
Experienced Management: TER's management team is considered experienced (3.8 years average tenure).
Board Age and Tenure
7.3yrs
Average Tenure
65.5yo
Average Age
Experienced Board: TER's board of directors are considered experienced (7.3 years average tenure).
Insider Trading
Insider Buying: TER insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 7,074 |
| Max Price | US$64.30 |
| Entity | Individual |
| Role | Head of Corporate Development Executive Vice President of Corporate Development |
| Shares | 25,012 |
| Max Price | US$63.62 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 14,148 |
| Max Price | US$61.95 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 17,115 |
| Max Price | US$57.37 |
| Entity | Individual |
| Role | Senior Key Executive President |
| Shares | 10,000 |
| Max Price | US$57.10 |
| Entity | Individual |
| Role | Chairman of the Board Independent Chair of the Board |
| Shares | 26,516 |
| Max Price | US$57.07 |
| Entity | Individual |
| Role | Chief Legal Officer VP, General Counsel & Secretary |
| Shares | 5,415 |
| Max Price | US$57.14 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 500 |
| Max Price | US$57.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 27,049 |
| Max Price | US$48.95 |
| Entity | Individual |
| Role | Senior Key Executive President |
| Shares | 10,000 |
| Max Price | US$49.48 |
| Entity | Individual |
| Shares | 20,625 |
| Max Price | US$47.91 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 36,529 |
| Max Price | US$39.20 |
| Entity | Individual |
| Role | Senior Key Executive President of Semiconductor Test |
| Shares | 11,210 |
| Max Price | US$36.85 |
| Entity | Individual |
| Shares | 26,778 |
| Max Price | US$36.98 |
| Entity | Individual |
| Role | Chief Legal Officer VP, General Counsel & Secretary |
| Shares | 23,584 |
| Max Price | US$36.69 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Mark Jagiela (58yo)
President
- Tenure: 5.8yrs
- Compensation: US$7.17m
Amy McAndrews (47yo)
Vice President of Finance
- Tenure: 0yrs
Charles Gray (57yo)
VP, General Counsel & Secretary
- Tenure: 10.6yrs
- Compensation: US$1.70m
Walter Vahey (54yo)
Executive Vice President of Corporate Development
- Tenure: 0.8yrs
- Compensation: US$1.34m
Brad Robbins (60yo)
President
- Tenure: 5.3yrs
- Compensation: US$1.32m
Thomas Visti
Chief Executive Officer of MiR
- Tenure: 0yrs
Gregory Smith (55yo)
President of Semiconductor Test
- Tenure: 3.8yrs
- Compensation: US$1.81m
Jürgen von Hollen
President of Universal Robots
- Tenure: 2yrs
Michal Kimeldorfer-Rabinowitz
Vice President of Human Resources
- Tenure: 0yrs
Sanjay Mehta
CFO, VP & Treasurer
- Tenure: 0.6yrs
Board Members
Mercedes Johnson (65yo)
Independent Director
- Tenure: 5.3yrs
- Compensation: US$245.00k
Ed Gillis (70yo)
Independent Director
- Tenure: 13.1yrs
- Compensation: US$270.00k
Mike Bradley (70yo)
Independent Director
- Tenure: 15.6yrs
- Compensation: US$245.00k
Paul Tufano (65yo)
Independent Director
- Tenure: 14.7yrs
- Compensation: US$245.00k
Roy Vallee (66yo)
Independent Chair of the Board
- Tenure: 5.5yrs
- Compensation: US$300.00k
Tim Guertin (69yo)
Independent Director
- Tenure: 8.8yrs
- Compensation: US$265.00k
Mark Jagiela (58yo)
President
- Tenure: 5.8yrs
- Compensation: US$7.17m
Marilyn Matz (65yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$254.77k
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$10.700b
- Shares outstanding: 167.58m
- 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 |
| 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. Its Semiconductor Test segment offers semiconductor test products and services for wafer level and de ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/20 23:47 |
| End of Day Share Price | 2019/11/20 00:00 |
| Earnings | 2019/09/29 |
| Annual Earnings | 2018/12/31 |
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.