Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$121.35|
|52 Week High||US$74.50|
|52 Week Low||US$147.90|
|1 Month Change||6.86%|
|3 Month Change||-3.86%|
|1 Year Change||58.90%|
|3 Year Change||217.59%|
|5 Year Change||469.99%|
|Change since IPO||4,363.45%|
Recent News & Updates
Teradyne (NASDAQ:TER) Seems To Use Debt Rather Sparingly
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Teradyne Hindered By Near-Term Guidance, While The Long-Term Outlook Is Attractive
Teradyne had a strong second quarter, with better than expected results across the testing business and better margins, but the Street wanted another guidance boost from management. Long-term testing equipment demand seems solidly underpinned by increasing test complexity and underlying chip volume growth, and Teradyne has growth opportunities in areas like advanced compute. Cobots will facilitate the adoption of advanced automation in many end-markets, and Teradyne's top-notch portfolio should drive high teens long-term growth. Overall long-term 8% revenue growth and double-digit FCF growth can drive a high single-digit annualized total return, making Teradyne a relatively undervalued play on long-term chip complexity/volume growth.
Investors Shouldn't Be Too Comfortable With Teradyne's (NASDAQ:TER) Robust Earnings
Despite posting some strong earnings, the market for Teradyne, Inc.'s ( NASDAQ:TER ) stock hasn't moved much. Our...
Should You Investigate Teradyne, Inc. (NASDAQ:TER) At US$127?
Today we're going to take a look at the well-established Teradyne, Inc. ( NASDAQ:TER ). The company's stock saw a...
|TER||US Semiconductor||US Market|
Return vs Industry: TER exceeded the US Semiconductor industry which returned 55% over the past year.
Return vs Market: TER exceeded the US Market which returned 33.8% over the past year.
Stable Share Price: TER is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TER's weekly volatility (4%) has been stable over the past year.
About the Company
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The company operates through Semiconductor Test, System Test, Industrial Automation, and Wireless Test segments. The Semiconductor Test segment offers products and services for wafer level and device package testing in automotive, industrial, communications, consumer, smartphones, computer and electronic game, and other applications.
Teradyne Fundamentals Summary
|TER fundamental statistics|
Is TER overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TER income statement (TTM)|
|Cost of Revenue||US$1.43b|
Last Reported Earnings
Jul 04, 2021
Next Earnings Date
|Earnings per share (EPS)||5.74|
|Net Profit Margin||27.65%|
How did TER perform over the long term?See historical performance and comparison
0.3%Current Dividend Yield
Is Teradyne undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TER ($121.35) is trading below our estimate of fair value ($185.72)
Significantly Below Fair Value: TER is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TER is good value based on its PE Ratio (21x) compared to the US Semiconductor industry average (29.6x).
PE vs Market: TER is poor value based on its PE Ratio (21x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: TER is poor value based on its PEG Ratio (4.1x)
Price to Book Ratio
PB vs Industry: TER is overvalued based on its PB Ratio (8x) compared to the US Semiconductor industry average (4.4x).
How is Teradyne forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TER's forecast earnings growth (5.1% per year) is above the savings rate (2%).
Earnings vs Market: TER's earnings (5.1% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: TER's earnings are forecast to grow, but not significantly.
Revenue vs Market: TER's revenue (7.6% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: TER's revenue (7.6% 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 (32.9%)
How has Teradyne performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TER has a high level of non-cash earnings.
Growing Profit Margin: TER's current net profit margins (27.7%) are higher than last year (22.6%).
Past Earnings Growth Analysis
Earnings Trend: TER has become profitable over the past 5 years, growing earnings by 43.4% per year.
Accelerating Growth: TER's earnings growth over the past year (50.8%) exceeds its 5-year average (43.4% per year).
Earnings vs Industry: TER earnings growth over the past year (50.8%) underperformed the Semiconductor industry 70.6%.
Return on Equity
High ROE: TER's Return on Equity (38.2%) is considered high.
How is Teradyne's financial position?
Financial Position Analysis
Short Term Liabilities: TER's short term assets ($2.7B) exceed its short term liabilities ($985.4M).
Long Term Liabilities: TER's short term assets ($2.7B) exceed its long term liabilities ($522.3M).
Debt to Equity History and Analysis
Debt Level: TER's debt to equity ratio (14.3%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if TER's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: TER's debt is well covered by operating cash flow (237.1%).
Interest Coverage: TER's interest payments on its debt are well covered by EBIT (51x coverage).
What is Teradyne current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TER's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: TER's dividend (0.33%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: TER is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: TER is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: TER is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TER's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Jagiela (60 yo)
Mr. Mark E. Jagiela has been the Chief Executive Officer of Teradyne Inc. since February 01, 2014, President since January 1, 2013 and served as its President of Semiconductor Test from 2003 to February 8,...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD10.37M) is about average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.
Experienced Management: TER's management team is considered experienced (2 years average tenure).
Experienced Board: TER's board of directors are considered experienced (7.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Teradyne, Inc.'s employee growth, exchange listings and data sources
- Name: Teradyne, Inc.
- Ticker: TER
- Exchange: NasdaqGS
- Founded: 1960
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Market Cap: US$20.019b
- Shares outstanding: 164.97m
- Website: https://www.teradyne.com
Number of Employees
- Teradyne, Inc.
- 600 Riverpark Drive
- North Reading
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/19 22:12|
|End of Day Share Price||2021/09/17 00:00|
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.