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TER

TeradyneNasdaqGS:TER Stock Report

Market Cap

US$23.9b

7D

-3.3%

1Y

33.8%

Updated

27 Nov, 2021

Data

Company Financials +
TER fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends0/6

TER Stock Overview

Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide.

Teradyne Competitors

MKS Instruments

NasdaqGS:MKSI

US$8.6b

Amkor Technology

NasdaqGS:AMKR

US$5.4b

Ultra Clean Holdings

NasdaqGS:UCTT

US$2.4b

Camtek

NasdaqGM:CAMT

US$1.9b

Price History & Performance

Summary of all time highs, changes and price drops for Teradyne
Historical stock prices
Current Share PriceUS$146.35
52 Week HighUS$154.50
52 Week LowUS$104.05
Beta1.4
1 Month Change6.82%
3 Month Change19.37%
1 Year Change33.78%
3 Year Change310.06%
5 Year Change511.32%
Change since IPO5,282.99%

Recent News & Updates

Nov 15
What Does Teradyne, Inc.'s (NASDAQ:TER) Share Price Indicate?

What Does Teradyne, Inc.'s (NASDAQ:TER) Share Price Indicate?

Today we're going to take a look at the well-established Teradyne, Inc. ( NASDAQ:TER ). The company's stock led the...

Nov 01
Shareholders Would Enjoy A Repeat Of Teradyne's (NASDAQ:TER) Recent Growth In Returns

Shareholders Would Enjoy A Repeat Of Teradyne's (NASDAQ:TER) Recent Growth In Returns

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will...

Shareholder Returns

TERUS SemiconductorUS Market
7D-3.3%-3.6%-2.7%
1Y33.8%53.7%21.3%

Return vs Industry: TER underperformed the US Semiconductor industry which returned 53.7% over the past year.

Return vs Market: TER exceeded the US Market which returned 21.3% over the past year.

Price Volatility

Is TER's price volatile compared to industry and market?
TER volatility
TER Average Weekly Movement5.2%
Semiconductor Industry Average Movement6.4%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: TER is not significantly more volatile than the rest 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.

About the Company

FoundedEmployeesCEOWebsite
19605,500Mark Jagielahttps://www.teradyne.com

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

How do Teradyne's earnings and revenue compare to its market cap?
TER fundamental statistics
Market CapUS$23.86b
Earnings (TTM)US$986.88m
Revenue (TTM)US$3.58b

24.2x

P/E Ratio

6.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TER income statement (TTM)
RevenueUS$3.58b
Cost of RevenueUS$1.45b
Gross ProfitUS$2.13b
ExpensesUS$1.14b
EarningsUS$986.88m

Last Reported Earnings

Oct 03, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.05
Gross Margin59.53%
Net Profit Margin27.59%
Debt/Equity Ratio5.7%

How did TER perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

7%

Payout Ratio

Valuation

Is Teradyne undervalued compared to its fair value and its price relative to the market?

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TER ($146.35) is trading below our estimate of fair value ($153.86)

Significantly Below Fair Value: TER is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TER is good value based on its PE Ratio (24.2x) compared to the US Semiconductor industry average (29.3x).

PE vs Market: TER is poor value based on its PE Ratio (24.2x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: TER is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: TER is overvalued based on its PB Ratio (9.4x) compared to the US Semiconductor industry average (4.8x).


Future Growth

How is Teradyne forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TER's forecast earnings growth (5.6% per year) is above the savings rate (2%).

Earnings vs Market: TER's earnings (5.6% 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 (7.9% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: TER's revenue (7.9% 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 (35.8%)


Past Performance

How has Teradyne performed over the past 5 years?

40.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TER has high quality earnings.

Growing Profit Margin: TER's current net profit margins (27.6%) are higher than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: TER has become profitable over the past 5 years, growing earnings by 40% per year.

Accelerating Growth: TER's earnings growth over the past year (37.6%) is below its 5-year average (40% per year).

Earnings vs Industry: TER earnings growth over the past year (37.6%) underperformed the Semiconductor industry 80.5%.


Return on Equity

High ROE: TER's Return on Equity (38.9%) is considered high.


Financial Health

How is Teradyne's financial position?


Financial Position Analysis

Short Term Liabilities: TER's short term assets ($2.5B) exceed its short term liabilities ($753.6M).

Long Term Liabilities: TER's short term assets ($2.5B) exceed its long term liabilities ($471.1M).


Debt to Equity History and Analysis

Debt Level: TER has more cash than its total debt.

Reducing Debt: TER's debt to equity ratio has increased from 0.4% to 5.7% over the past 5 years.

Debt Coverage: TER's debt is well covered by operating cash flow (708.6%).

Interest Coverage: TER's interest payments on its debt are well covered by EBIT (61x coverage).


Balance Sheet


Dividend

What is Teradyne current dividend yield, its reliability and sustainability?

0.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TER's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: TER's dividend (0.27%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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?

2.2yrs

Average management tenure


CEO

Mark Jagiela (60 yo)

7.75yrs

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 ($USD10.37M) is about average for companies of similar size in the US market ($USD11.11M).

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 considered experienced (2.2 years average tenure).


Board Members

Experienced Board: TER's board of directors are considered experienced (7.5 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Teradyne, Inc.'s 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$23.856b
  • Shares outstanding: 163.00m
  • Website: https://www.teradyne.com

Number of Employees


Location

  • Teradyne, Inc.
  • 600 Riverpark Drive
  • North Reading
  • Massachusetts
  • 1864
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 23:27
End of Day Share Price2021/11/26 00:00
Earnings2021/10/03
Annual Earnings2020/12/31


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.