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TER

Teradyne NasdaqGS:TER Stock Report

Last Price

US$103.52

Market Cap

US$17.2b

7D

3.3%

1Y

-13.6%

Updated

16 May, 2022

Data

Company Financials +
TER fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends0/6

TER Stock Overview

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

Teradyne Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Teradyne
Historical stock prices
Current Share PriceUS$103.52
52 Week HighUS$168.91
52 Week LowUS$98.64
Beta1.49
1 Month Change-2.36%
3 Month Change-12.35%
1 Year Change-13.63%
3 Year Change136.19%
5 Year Change196.53%
Change since IPO3,707.63%

Recent News & Updates

May 16
We Think Teradyne (NASDAQ:TER) Might Have The DNA Of A Multi-Bagger

We Think Teradyne (NASDAQ:TER) Might Have The DNA Of A Multi-Bagger

There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a...

May 12

Teradyne: Semicon ATE Market Leader

The company and Advantest are market leaders in the semiconductor ATE with over 60% of the market share combined. It has long-standing relationships with major OSATs and IDMs including TSMC as its largest customer as it expands in the OSAT market. The company has superior profitability margins against competitors with massive scale in the ATE market which has high barriers to entry and low bargaining power of buyers.

May 05

Teradyne Revenue Likely To Decline In The Coming Quarters

Teradyne revenue will likely return to historical averages, along with semiconductor capacity CAPEX. The dividend is sustainable and will likely grow incrementally. Nonetheless, its growth comes from a low-yield base. Our hold rating mirrors long-term digitalization trends, weighed against high price multiples.

May 02
Are Investors Undervaluing Teradyne, Inc. (NASDAQ:TER) By 49%?

Are Investors Undervaluing Teradyne, Inc. (NASDAQ:TER) By 49%?

In this article we are going to estimate the intrinsic value of Teradyne, Inc. ( NASDAQ:TER ) by taking the expected...

Shareholder Returns

TERUS SemiconductorUS Market
7D3.3%-1.4%-2.5%
1Y-13.6%4.6%-10.4%

Return vs Industry: TER underperformed the US Semiconductor industry which returned 4.6% over the past year.

Return vs Market: TER underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is TER's price volatile compared to industry and market?
TER volatility
TER Average Weekly Movement6.9%
Semiconductor Industry Average Movement8.6%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: TER is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TER's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19605,900Mark 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, cloud 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$17.20b
Earnings (TTM)US$971.01m
Revenue (TTM)US$3.68b

17.1x

P/E Ratio

4.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TER income statement (TTM)
RevenueUS$3.68b
Cost of RevenueUS$1.48b
Gross ProfitUS$2.20b
Other ExpensesUS$1.23b
EarningsUS$971.01m

Last Reported Earnings

Apr 03, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.06
Gross Margin59.84%
Net Profit Margin26.41%
Debt/Equity Ratio3.9%

How did TER perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

7%

Payout Ratio

Does TER pay a reliable dividends?

See TER dividend history and benchmarks
When do you need to buy TER by to receive an upcoming dividend?
Teradyne dividend dates
Ex Dividend DateMay 24 2022
Dividend Pay DateJun 17 2022
Days until Ex dividend7 days
Days until Dividend pay date31 days

Does TER pay a reliable dividends?

See TER dividend history and benchmarks

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


48.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TER ($103.52) is trading below our estimate of fair value ($200.11)

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 (17.1x) compared to the US Semiconductor industry average (18.7x).

PE vs Market: TER is poor value based on its PE Ratio (17.1x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: TER is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: TER is overvalued based on its PB Ratio (6.7x) compared to the US Semiconductor industry average (3.4x).


Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TER's forecast earnings growth (19.5% per year) is above the savings rate (1.9%).

Earnings vs Market: TER's earnings (19.5% per year) are forecast to grow faster than the US market (12.6% per year).

High Growth Earnings: TER's earnings are forecast to grow, but not significantly.

Revenue vs Market: TER's revenue (14.2% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: TER's revenue (14.2% 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 (41%).


Past Performance

How has Teradyne performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


32.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TER has high quality earnings.

Growing Profit Margin: TER's current net profit margins (26.4%) are higher than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: TER's earnings have grown significantly by 32.1% per year over the past 5 years.

Accelerating Growth: TER's earnings growth over the past year (19.4%) is below its 5-year average (32.1% per year).

Earnings vs Industry: TER earnings growth over the past year (19.4%) underperformed the Semiconductor industry 77.9%.


Return on Equity

High ROE: TER's Return on Equity (39.2%) is considered high.


Financial Health

How is Teradyne's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TER's short term assets ($2.4B) exceed its short term liabilities ($712.2M).

Long Term Liabilities: TER's short term assets ($2.4B) exceed its long term liabilities ($422.4M).


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 reduced from 18.5% to 3.9% over the past 5 years.

Debt Coverage: TER's debt is well covered by operating cash flow (1113.6%).

Interest Coverage: TER's interest payments on its debt are well covered by EBIT (116.3x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.43%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 17 2022Ex Dividend DateMay 24 2022Dividend Pay DateJun 17 202224 days from Ex DividendBuy in the next 7 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TER's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: TER's dividend (0.43%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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.


Earnings Payout to Shareholders

Earnings Coverage: TER is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: TER is not paying a notable dividend for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Mark Jagiela (60 yo)

9.33yrs

Tenure

US$10,954,713

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 ($USD10.95M) is about average for companies of similar size in the US market ($USD13.26M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TER's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: TER's board of directors are considered experienced (8.3 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.


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
  • Implied Market Cap: US$17.198b
  • Shares outstanding: 160.20m
  • 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 Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/04/03
Annual Earnings2021/12/31


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.