Stock Analysis Report

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Executive Summary

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

Snowflake Analysis

Excellent balance sheet with proven track record.

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's share price has been volatile over the past 3 months.

Market Performance

7 Day Return




US Semiconductor


US Market

1 Year Return




US Semiconductor


US Market

Return vs Industry: TER exceeded the US Semiconductor industry which returned 41.5% over the past year.

Return vs Market: TER exceeded the US Market which returned 9.3% over the past year.

Shareholder returns

7 Day2.8%1.4%1.7%
30 Day18.6%13.5%9.5%
90 Day14.6%6.7%0.1%
1 Year56.9%55.9%43.3%40.5%11.0%8.5%
3 Year101.3%96.7%65.9%57.0%32.2%23.5%
5 Year243.9%228.7%153.5%129.2%58.6%40.8%

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


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


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: TER ($69.45) is trading above our estimate of fair value ($47.23)

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 (21.9x) compared to the Semiconductor industry average (35.5x).

PE vs Market: TER is poor value based on its PE Ratio (21.9x) compared to the US market (15.7x).

Price to Earnings Growth Ratio

PEG Ratio: TER is poor value based on its PEG Ratio (2.8x)

Price to Book Ratio

PB vs Industry: TER is overvalued based on its PB Ratio (7.4x) compared to the US Semiconductor industry average (3x).

Next Steps

Future Growth

How is Teradyne forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TER's forecast earnings growth (7.8% per year) is above the savings rate (2.2%).

Earnings vs Market: TER's earnings (7.8% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: TER's revenue (6.2% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: TER's revenue (6.2% 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 high in 3 years time (29.3%)

Next Steps

Past Performance

How has Teradyne performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TER has high quality earnings.

Growing Profit Margin: TER's current net profit margins (21.3%) are lower than last year (22.5%).

Past Earnings Growth Analysis

Earnings Trend: TER's earnings have grown significantly by 36.7% per year over the past 5 years.

Accelerating Growth: TER's earnings growth over the past year (12.8%) is below its 5-year average (36.7% per year).

Earnings vs Industry: TER earnings growth over the past year (12.8%) exceeded the Semiconductor industry -10.8%.

Return on Equity

High ROE: TER's Return on Equity (34.5%) is considered high.

Next Steps

Financial Health

How is Teradyne's financial position?

Financial Position Analysis

Short Term Liabilities: TER's short term assets ($1.7B) exceed its short term liabilities ($514.0M).

Long Term Liabilities: TER's short term assets ($1.7B) exceed its long term liabilities ($755.8M).

Debt to Equity History and Analysis

Debt Level: TER's debt to equity ratio (25.7%) 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 (151.5%).

Interest Coverage: TER's interest payments on its debt are well covered by EBIT (1002.1x coverage).

Balance Sheet

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TER's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: TER's dividend (0.58%) is low compared to the top 25% of dividend payers in the US market (4.55%).

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


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


Average management tenure


Mark Jagiela (58yo)





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 ($USD8.01M) is below average for companies of similar size in the US market ($USD11.64M).

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

Leadership Team

Mark Jagiela
President6.33yrsUS$8.01m0.20% $23.4m
Sanjay Mehta
CFO, VP & Treasurer1.17yrsUS$4.44m0.022% $2.5m
Charles Gray
VP, General Counsel & Secretary11.17yrsUS$1.72m0.017% $1.9m
Bradford Robbins
President of Wireless Test Division5.83yrsUS$2.23m0.021% $2.4m
Gregory Smith
President of Semiconductor Test Division4.33yrsUS$1.82m0.016% $1.8m
Walter Vahey
Executive Vice President of Corporate Development1.42yrsUS$1.34mno data
Michal Kimeldorfer-Rabinowitz
Vice President of Human Resourcesno datano datano data
Jürgen von Hollen
President of Universal Robots2.58yrsno datano data
Thomas Visti
Chief Executive Officer of MiRno datano datano data
Neil Tardella
Chief Executive Officer of Energidno datano datano data


Average Tenure


Average Age

Experienced Management: TER's management team is considered experienced (4.3 years average tenure).

Board Members

Mark Jagiela
President6.33yrsUS$8.01m0.20% $23.4m
Mercedes Johnson
Independent Director5.92yrsUS$276.15k0.019% $2.2m
Edwin Gillis
Independent Director13.67yrsUS$304.39k0.025% $2.9m
Michael Bradley
Independent Director16.17yrsUS$276.15k0.021% $2.5m
Paul Tufano
Independent Director15.25yrsUS$276.15k0.074% $8.6m
Roy Vallee
Independent Chair of the Board6.08yrsUS$337.63k0.052% $6.0m
Timothy Guertin
Independent Director9.42yrsUS$296.15k0.041% $4.8m
Marilyn Matz
Independent Director2.92yrsUS$291.15k0.010% $1.2m


Average Tenure


Average Age

Experienced Board: TER's board of directors are considered experienced (7.9 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

Ownership Breakdown

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

Top Shareholders

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$11.513b
  • Shares outstanding: 165.77m
  • Website:

Number of Employees


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


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TERNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1970
TEYDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1970
0LEFLSE (London Stock Exchange)YesCommon StockGBUSDOct 1970
TER *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1970


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, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the highest volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and outsourced semiconductor assembly and test providers. The System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems. The Industrial Automation segment provides collaborative, autonomous mobile, and advanced robotic control software for manufacturing and light industrial customers. The Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices, smart phones, tablets, notebooks, laptops, peripherals, and Internet-of-Things devices under the LitePoint brand name. This segment also offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE-FDD, TD_LTE, LTE-A, and 5G technologies; IQcell, a multi-device cellular signaling test solution; IQgig test solution; and turnkey test software for wireless chipsets. The company was founded in 1960 and is headquartered in North Reading, Massachusetts. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 02:41
End of Day Share Price2020/06/02 00:00
Annual Earnings2019/12/31

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.