| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 4/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
TER Stock Overview
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide.
Rewards
Risk Analysis
No risks detected for TER from our risk checks.
Teradyne Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$102.80 |
| 52 Week High | US$168.91 |
| 52 Week Low | US$98.64 |
| Beta | 1.49 |
| 1 Month Change | -4.94% |
| 3 Month Change | -11.38% |
| 1 Year Change | -16.02% |
| 3 Year Change | 136.32% |
| 5 Year Change | 192.46% |
| Change since IPO | 3,681.15% |
Recent News & Updates
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...
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.
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.
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
| TER | US Semiconductor | US Market | |
|---|---|---|---|
| 7D | 2.4% | 3.4% | 0.5% |
| 1Y | -16.0% | 1.9% | -11.5% |
Return vs Industry: TER underperformed the US Semiconductor industry which returned 9.5% over the past year.
Return vs Market: TER underperformed the US Market which returned -8.1% over the past year.
Price Volatility
| TER volatility | |
|---|---|
| TER Average Weekly Movement | 7.2% |
| Semiconductor Industry Average Movement | 8.7% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 17.0% |
| 10% least volatile stocks in US Market | 3.0% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1960 | 5,900 | Mark Jagiela | https://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
| TER fundamental statistics | |
|---|---|
| Market Cap | US$17.38b |
| Earnings (TTM) | US$971.01m |
| Revenue (TTM) | US$3.68b |
17.0x
P/E Ratio4.5x
P/S RatioIs TER overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TER income statement (TTM) | |
|---|---|
| Revenue | US$3.68b |
| Cost of Revenue | US$1.48b |
| Gross Profit | US$2.20b |
| Other Expenses | US$1.23b |
| Earnings | US$971.01m |
Last Reported Earnings
Apr 03, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 6.06 |
| Gross Margin | 59.84% |
| Net Profit Margin | 26.41% |
| Debt/Equity Ratio | 3.9% |
How did TER perform over the long term?
See historical performance and comparisonDividends
0.4%
Current Dividend Yield7%
Payout RatioDoes TER pay a reliable dividends?
See TER dividend history and benchmarks| Teradyne dividend dates | |
|---|---|
| Ex Dividend Date | May 24 2022 |
| Dividend Pay Date | Jun 17 2022 |
| Days until Ex dividend | 5 days |
| Days until Dividend pay date | 29 days |
Does TER pay a reliable dividends?
See TER dividend history and benchmarksValuation
Is Teradyne undervalued compared to its fair value and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
48.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TER ($102.8) is trading below our estimate of fair value ($200.41)
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 (17x) compared to the US Semiconductor industry average (19.7x).
PE vs Market: TER is poor value based on its PE Ratio (17x) compared to the US market (16x).
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 (3.5x).
Future Growth
How is Teradyne forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Future Growth Score
4/6Future 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 (12.4% 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 (7.8% 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
4/6Past 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 70.5%.
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
6/6Financial 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
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
0.43%
Current Dividend Yield
Upcoming Dividend Payment
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 (1.51%).
High Dividend: TER's dividend (0.43%) is low compared to the top 25% of dividend payers in the US market (3.97%).
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.
Discover strong dividend paying companies
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 ($USD13.27M).
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$17.384b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/18 00:00 |
| End of Day Share Price | 2022/05/18 00:00 |
| Earnings | 2022/04/03 |
| Annual Earnings | 2021/12/31 |
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.