NasdaqGS:TER

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet.


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


Market Performance


7 Day Return

-3.7%

TER

0.08%

US Semiconductor

0.4%

US Market


1 Year Return

79.8%

TER

21.6%

US Semiconductor

6.9%

US Market

Return vs Industry: TER exceeded the US Semiconductor industry which returned 21.6% over the past year.

Return vs Market: TER exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

TERIndustryMarket
7 Day-3.7%0.08%0.4%
30 Day0.7%-1.1%-1.2%
90 Day28.2%3.6%-0.4%
1 Year81.4%79.8%24.0%21.6%9.3%6.9%
3 Year182.3%175.2%80.7%70.0%45.8%36.4%
5 Year242.0%225.4%132.7%108.5%62.9%45.1%

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

Valuation

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

22.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TER ($58.93) is trading above our estimate of fair value ($46.96)

Significantly Undervalued: 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 (22.2x) compared to the Semiconductor industry average (27.4x).

PE vs Market: TER is poor value based on its PE Ratio (22.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: TER is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: TER is overvalued based on its PB Ratio (6.8x) compared to the US Semiconductor industry average (2.7x).


Next Steps

Future Growth

How is Teradyne forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TER's forecast earnings growth (10.7% per year) is above the savings rate (2.7%).

Earnings vs Market: TER's earnings (10.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: TER's revenue (11% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: TER's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TER's Return on Equity is forecast to be high in 3 years time (35.5%)


Next Steps

Past Performance

How has Teradyne performed over the past 5 years?

27.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TER's earnings have grown significantly by 27.9% per year over the past 5 years.

Accelerating Growth: TER's earnings growth over the past year (152.4%) exceeds its 5-year average (27.9% per year).

Earnings vs Industry: TER earnings growth over the past year (152.4%) exceeded the Semiconductor industry -6.2%.


Return on Equity

High ROE: TER's Return on Equity (31.8%) is considered high.


Return on Assets

ROA vs Industry: TER has a higher Return on Assets than the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: TER has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Teradyne's financial position?


Financial Position Analysis

Short Term Liabilities: TER's short term assets ($1.6B) exceeds its short term liabilities ($467.0M)

Long Term Liabilities: TER's short term assets (1.6B) exceeds its long term liabilities (725.1M)


Debt to Equity History and Analysis

Debt Level: TER's debt to equity ratio (26.2%) 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 (152.4%).

Interest Coverage: TER's interest payments on its debt are well covered by EBIT (334.3x coverage).


Balance Sheet

Inventory Level: TER has a low level of unsold assets or inventory.

Debt Coverage by Assets: TER's debt is covered by short term assets (assets are 4.175220x debt).


Next Steps

Dividend

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

0.61%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TER's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TER's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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

What is the CEO of Teradyne's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Mark Jagiela (58yo)

5.7yrs

Tenure

US$7,172,691

Compensation

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 ($USD7.17M) is below average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

Experienced Management: TER's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: TER's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

Insider Buying: TER insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$981,80230 Jul 19
Michael Bradley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares17,115
Max PriceUS$57.37
SellUS$571,00029 Jul 19
Bradford Robbins
EntityIndividual
Role
Senior Key Executive
President
Shares10,000
Max PriceUS$57.10
SellUS$1,513,26829 Jul 19
Roy Vallee
EntityIndividual
Role
Chairman of the Board
Independent Chair of the Board
Shares26,516
Max PriceUS$57.07
SellUS$309,41329 Jul 19
Charles Gray
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares5,415
Max PriceUS$57.14
SellUS$28,50029 Jul 19
Marilyn Matz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$57.00
SellUS$1,324,04930 Apr 19
Michael Bradley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares27,049
Max PriceUS$48.95
SellUS$494,59630 Apr 19
Bradford Robbins
EntityIndividual
Role
Senior Key Executive
President
Shares10,000
Max PriceUS$49.48
SellUS$988,04130 Apr 19
Gregory Beecher
EntityIndividual
Shares20,625
Max PriceUS$47.91
SellUS$1,431,93715 Feb 19
Mark Jagiela
EntityIndividual
Role
Chief Executive Officer
President
Shares36,529
Max PriceUS$39.20
SellUS$412,79605 Feb 19
Gregory Smith
EntityIndividual
Role
Senior Key Executive
President of Semiconductor Test
Shares11,210
Max PriceUS$36.85
SellUS$989,02101 Feb 19
Gregory Beecher
EntityIndividual
Shares26,778
Max PriceUS$36.98
SellUS$865,29701 Feb 19
Charles Gray
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares23,584
Max PriceUS$36.69

Ownership Breakdown


Management Team

  • Mark Jagiela (58yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$7.17m
  • Amy McAndrews (47yo)

    Vice President of Finance

    • Tenure: 0yrs
  • Charles Gray (57yo)

    VP, General Counsel & Secretary

    • Tenure: 10.5yrs
    • Compensation: US$1.70m
  • Walter Vahey (54yo)

    Executive Vice President of Corporate Development

    • Tenure: 0.8yrs
    • Compensation: US$1.34m
  • Brad Robbins (60yo)

    President

    • Tenure: 5.2yrs
    • Compensation: US$1.32m
  • Thomas Visti

    Chief Executive Officer of MiR

    • Tenure: 0yrs
  • Gregory Smith (55yo)

    President of Semiconductor Test

    • Tenure: 3.7yrs
    • Compensation: US$1.81m
  • Jürgen von Hollen

    President of Universal Robots

    • Tenure: 1.9yrs
  • Michal Kimeldorfer-Rabinowitz

    Vice President of Human Resources

    • Tenure: 0yrs
  • Sanjay Mehta

    CFO, VP & Treasurer

    • Tenure: 0.5yrs

Board Members

  • Mercedes Johnson (65yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$245.00k
  • Ed Gillis (70yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$270.00k
  • Mike Bradley (70yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$245.00k
  • Paul Tufano (65yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$245.00k
  • Roy Vallee (66yo)

    Independent Chair of the Board

    • Tenure: 5.4yrs
    • Compensation: US$300.00k
  • Tim Guertin (69yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$265.00k
  • Mark Jagiela (58yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$7.17m
  • Marilyn Matz (65yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$254.77k

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$10.015b
  • Shares outstanding: 169.95m
  • Website: https://www.teradyne.com

Number of Employees


Location

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

Listings

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

Biography

Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. Its Semiconductor Test segment offers semiconductor test products and services for wafer level and de ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:43
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.