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Teradyne

Nasdaq:TER
Snowflake Description

Outstanding track record with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TER
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The last earnings update was 39 days ago. More info.


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TER Share Price and Events
7 Day Returns
-3.2%
NasdaqGS:TER
-4.1%
US Semiconductor
0.1%
US Market
1 Year Returns
17.5%
NasdaqGS:TER
-11.1%
US Semiconductor
1.2%
US Market
TER Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Teradyne (TER) -3.2% -0.2% 15.8% 17.5% 132.2% 136.9%
US Semiconductor -4.1% -3% -6.4% -11.1% 67.5% 78.8%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • TER outperformed the Semiconductor industry which returned -11.1% over the past year.
  • TER outperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
TER
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Teradyne undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Teradyne to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Teradyne.

NasdaqGS:TER Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:TER
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.22
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.224 (1 + (1- 21%) (5.59%))
1.186
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.186 * 5.96%)
9.8%

Discounted Cash Flow Calculation for NasdaqGS:TER using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Teradyne is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:TER DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.8%)
2019 312.70 Analyst x5 284.80
2020 425.93 Analyst x5 353.30
2021 403.02 Est @ -5.38% 304.47
2022 391.14 Est @ -2.95% 269.13
2023 386.28 Est @ -1.24% 242.06
2024 386.08 Est @ -0.05% 220.35
2025 389.10 Est @ 0.78% 202.26
2026 394.42 Est @ 1.37% 186.73
2027 401.43 Est @ 1.78% 173.08
2028 409.71 Est @ 2.06% 160.89
Present value of next 10 years cash flows $2,397.06
NasdaqGS:TER DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $409.71 × (1 + 2.73%) ÷ (9.8% – 2.73%)
$5,954.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,954.78 ÷ (1 + 9.8%)10
$2,338.38
NasdaqGS:TER Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,397.06 + $2,338.38
$4,735.44
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,735.44 / 171.40
$27.63
NasdaqGS:TER Discount to Share Price
Calculation Result
Value per share (USD) From above. $27.63
Current discount Discount to share price of $45.82
= -1 x ($45.82 - $27.63) / $27.63
-65.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Teradyne is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Teradyne's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Teradyne's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:TER PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.60
NasdaqGS:TER Share Price ** NasdaqGS (2019-06-18) in USD $45.82
United States of America Semiconductor Industry PE Ratio Median Figure of 69 Publicly-Listed Semiconductor Companies 22.43x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Teradyne.

NasdaqGS:TER PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:TER Share Price ÷ EPS (both in USD)

= 45.82 ÷ 2.60

17.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Teradyne is good value based on earnings compared to the US Semiconductor industry average.
  • Teradyne is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Teradyne's expected growth come at a high price?
Raw Data
NasdaqGS:TER PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
6.1%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 63 Publicly-Listed Semiconductor Companies 0.96x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:TER PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.62x ÷ 6.1%

2.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Teradyne is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Teradyne's assets?
Raw Data
NasdaqGS:TER PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $8.53
NasdaqGS:TER Share Price * NasdaqGS (2019-06-18) in USD $45.82
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.47x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:TER PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:TER Share Price ÷ Book Value per Share (both in USD)

= 45.82 ÷ 8.53

5.37x

* Primary Listing of Teradyne.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Teradyne is overvalued based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess Teradyne's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Teradyne has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Teradyne expected to grow at an attractive rate?
  • Teradyne's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Teradyne's earnings growth is positive but not above the United States of America market average.
  • Teradyne's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:TER Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:TER Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 6.1%
NasdaqGS:TER Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 12.1%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 18%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:TER Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:TER Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,700 487 3
2020-12-31 2,401 571 446 14
2019-12-31 2,096 424 397 13
NasdaqGS:TER Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,107 577 474
2018-12-31 2,101 477 452
2018-09-30 2,061 438 202
2018-07-01 1,997 507 186
2018-04-01 2,167 606 259
2017-12-31 2,137 626 258
2017-10-01 2,037 516 430
2017-07-02 1,944 408 390
2017-04-02 1,779 358 -8
2016-12-31 1,753 455 -43
2016-10-02 1,692 458 -110
2016-07-03 1,747 436 -103
2016-04-03 1,728 411 224

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Teradyne's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
  • Teradyne's revenue is expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:TER Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Teradyne Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TER Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.85 2.85 2.85 1.00
2020-12-31 2.66 2.95 2.45 5.00
2019-12-31 2.28 2.40 2.18 5.00
NasdaqGS:TER Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.60
2018-12-31 2.41
2018-09-30 1.05
2018-07-01 0.95
2018-04-01 1.32
2017-12-31 1.30
2017-10-01 2.16
2017-07-02 1.95
2017-04-02 -0.04
2016-12-31 -0.21
2016-10-02 -0.54
2016-07-03 -0.50
2016-04-03 1.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Teradyne is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Teradyne's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Teradyne has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Teradyne performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Teradyne's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Teradyne has delivered over 20% year on year earnings growth in the past 5 years.
  • Teradyne's 1-year earnings growth exceeds its 5-year average (82.7% vs 23.2%)
  • Teradyne's earnings growth has exceeded the US Semiconductor industry average in the past year (82.7% vs 22.6%).
Earnings and Revenue History
Teradyne's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Teradyne Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TER Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,107.43 473.94 418.16 284.59
2018-12-31 2,100.80 451.78 406.65 282.21
2018-09-30 2,060.66 202.07 393.22 278.67
2018-07-01 1,997.19 185.51 377.50 278.61
2018-04-01 2,167.16 259.45 368.20 285.54
2017-12-31 2,136.61 257.69 362.49 287.11
2017-10-01 2,037.18 429.96 355.12 286.19
2017-07-02 1,944.28 390.34 349.09 280.60
2017-04-02 1,779.17 -8.19 340.40 274.44
2016-12-31 1,753.25 -43.42 332.44 273.06
2016-10-02 1,691.71 -110.41 335.01 276.01
2016-07-03 1,747.23 -102.75 333.70 278.64
2016-04-03 1,728.17 223.68 329.35 278.36
2015-12-31 1,639.58 206.48 322.51 276.05
2015-10-04 1,644.37 103.31 317.75 300.50
2015-07-05 1,656.39 114.80 313.34 298.42
2015-04-05 1,669.22 113.13 313.75 296.00
2014-12-31 1,647.82 81.27 329.12 275.64
2014-09-28 1,609.89 207.43 291.48 277.07
2014-06-29 1,565.25 193.94 291.33 274.03
2014-03-30 1,468.58 159.29 283.08 268.39
2013-12-31 1,427.93 164.95 279.56 264.06
2013-09-29 1,391.04 126.06 279.33 262.25
2013-06-30 1,421.05 145.24 275.44 257.28
2013-03-31 1,540.45 190.07 278.27 257.34
2012-12-31 1,656.75 217.05 277.02 255.87
2012-09-30 1,705.34 362.82 272.66 249.43
2012-07-01 1,586.33 330.89 258.41 231.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Teradyne has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Teradyne used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • Teradyne has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Teradyne's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Teradyne has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Teradyne's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Teradyne's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Teradyne is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Teradyne's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Teradyne's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Teradyne Company Filings, last reported 2 months ago.

NasdaqGS:TER Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,470.23 438.83 904.82
2018-12-31 1,522.35 379.98 1,116.85
2018-09-30 1,667.76 376.42 1,232.43
2018-07-01 1,739.94 372.90 1,192.69
2018-04-01 1,904.98 369.42 1,498.40
2017-12-31 1,953.65 365.99 1,777.82
2017-10-01 2,109.90 362.60 1,636.51
2017-07-02 2,048.65 359.25 1,407.69
2017-04-02 1,919.85 355.94 1,220.32
2016-12-31 1,828.66 352.67 1,178.91
2016-10-02 1,782.14 0.00 896.44
2016-07-03 1,745.58 0.00 823.25
2016-04-03 1,995.90 0.00 729.36
2015-12-31 1,965.79 0.00 742.40
2015-10-04 2,045.61 0.00 819.60
2015-07-05 2,074.22 0.00 752.73
2015-04-05 2,057.22 0.00 868.16
2014-12-31 2,078.98 0.00 828.04
2014-09-28 2,189.91 0.00 806.51
2014-06-29 2,101.47 0.00 743.06
2014-03-30 1,989.83 0.00 694.78
2013-12-31 1,985.09 186.66 928.52
2013-09-29 1,951.50 183.57 957.20
2013-06-30 1,866.49 179.57 728.75
2013-03-31 1,791.27 176.84 710.00
2012-12-31 1,778.36 173.39 770.44
2012-09-30 1,785.24 171.42 830.54
2012-07-01 1,685.43 167.81 695.00
  • Teradyne's level of debt (26.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 26.1% today).
  • Debt is well covered by operating cash flow (150.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 373.7x coverage).
X
Financial health checks
We assess Teradyne's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Teradyne has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.79%
Current annual income from Teradyne dividends. Estimated to be 0.88% next year.
If you bought $2,000 of Teradyne shares you are expected to receive $16 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Teradyne's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Teradyne's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:TER Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:TER Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.47 3.00
2020-12-31 0.40 5.00
2019-12-31 0.37 5.00
NasdaqGS:TER Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-07 0.360 0.803
2019-01-23 0.360 0.876
2018-11-13 0.360 1.097
2018-08-23 0.360 0.995
2018-05-08 0.360 0.909
2018-04-24 0.360 1.028
2018-03-01 0.360 0.792
2018-01-24 0.360 0.817
2017-11-14 0.280 0.649
2017-08-24 0.280 0.733
2017-05-09 0.280 0.828
2017-04-26 0.280 0.790
2017-03-01 0.280 0.908
2017-01-25 0.280 0.974
2016-11-15 0.240 0.943
2016-08-24 0.240 1.107
2016-05-10 0.240 1.212
2016-04-27 0.240 1.258
2015-11-18 0.240 1.197
2015-08-21 0.240 1.295
2015-05-12 0.240 1.218
2015-05-08 0.240 1.168
2015-04-30 0.240 1.209
2014-11-19 0.240 1.249
2014-08-21 0.240 1.267
2014-01-22 0.240 1.260

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Teradyne is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Teradyne is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Teradyne's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Teradyne's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.1x coverage).
X
Income/ dividend checks
We assess Teradyne's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Teradyne afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Teradyne has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Jagiela
COMPENSATION $7,172,691
AGE 57
TENURE AS CEO 5.3 years
CEO Bio

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 2003 to February 8, 2016. Mr. Jagiela served as the President of the Semiconductor Test Division at Teradyne Inc. and Amphenol TCS (Teradyne Connection Systems) since July 2003. He served as a Vice President of Teradyne Inc. from 2001 to 2013. He joined Teradyne Inc. in 1982 and served as its Design Engineer in what is the System-On-a-Chip (SOC) test systems group. Mr. Jagiela served as General Manager of Teradyne's Japan Division from 1989 to 1999. While there, he oversaw the move of the divisional headquarters from Tokyo to Kumamoto, a significant strengthening of the division's engineering and manufacturing capability and the development of a successful strategy in image sensor test. Upon returning to the U.S. in 1999, he served as Engineering Manager of VLSI test and he later served as General Manager of that group. For the last two years, he has held overall marketing and business unit management responsibility for Semiconductor Test. He has been a Director of Nextest Systems Corporations ince January 24 , 2008. He has been Director of Teradyne Inc. since February 1, 2014. Mr. Jagiela holds a B.S. in Electrical Engineering from the University of Michigan in 1982.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Teradyne management team in years:

2.5
Average Tenure
56
Average Age
  • The tenure for the Teradyne management team is about average.
Management Team

Mark Jagiela

TITLE
President
COMPENSATION
$7M
AGE
57
TENURE
5.3 yrs

Charles Gray

TITLE
VP, General Counsel & Secretary
COMPENSATION
$2M
AGE
56
TENURE
10.2 yrs

Greg Beecher

TITLE
VP & Senior Advisor
COMPENSATION
$3M
AGE
60
TENURE
0.2 yrs

Walter Vahey

TITLE
Executive Vice President of Business Development
COMPENSATION
$1M
AGE
53
TENURE
1.5 yrs

Brad Robbins

TITLE
President
COMPENSATION
$1M
AGE
59
TENURE
4.8 yrs

Gregory Smith

TITLE
President of Semiconductor Test
COMPENSATION
$2M
AGE
54
TENURE
3.3 yrs

Sanjay Mehta

TITLE
CFO & VP
TENURE
0.2 yrs

Michal Kimeldorfer-Rabinowitz

TITLE
Vice President of Human Resources

Jürgen von Hollen

TITLE
President of Universal Robots
TENURE
1.6 yrs

Amy McAndrews

TITLE
Vice President of Finance
AGE
46
Board of Directors Tenure

Average tenure and age of the Teradyne board of directors in years:

6.9
Average Tenure
64.5
Average Age
  • The tenure for the Teradyne board of directors is about average.
Board of Directors

Roy Vallee

TITLE
Independent Chair of the Board
COMPENSATION
$300K
AGE
65
TENURE
5.1 yrs

Mark Jagiela

TITLE
President
COMPENSATION
$7M
AGE
57
TENURE
5.3 yrs

Ed Gillis

TITLE
Director
COMPENSATION
$270K
AGE
69
TENURE
12.7 yrs

Tim Guertin

TITLE
Director
COMPENSATION
$265K
AGE
68
TENURE
8.4 yrs

Marilyn Matz

TITLE
Director
COMPENSATION
$255K
AGE
64
TENURE
1.9 yrs

Mike Bradley

TITLE
Director
COMPENSATION
$245K
AGE
69
TENURE
15.2 yrs

Paul Tufano

TITLE
Director
COMPENSATION
$245K
AGE
64
TENURE
14.3 yrs

Mercedes Johnson

TITLE
Director
COMPENSATION
$245K
AGE
64
TENURE
4.9 yrs
Who owns this company?
Recent Insider Trading
  • Teradyne insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. Apr 19 Sell Michael Bradley Individual 29. Apr 19 29. Apr 19 -27,049 $48.95 $-1,324,049
30. Apr 19 Sell Bradford Robbins Individual 26. Apr 19 26. Apr 19 -10,000 $49.48 $-494,596
30. Apr 19 Sell Gregory Beecher Individual 25. Apr 19 25. Apr 19 -20,625 $47.91 $-988,041
15. Feb 19 Sell Mark Jagiela Individual 13. Feb 19 13. Feb 19 -36,529 $39.20 $-1,431,937
05. Feb 19 Sell Gregory Smith Individual 04. Feb 19 04. Feb 19 -11,210 $36.85 $-412,796
01. Feb 19 Sell Gregory Beecher Individual 31. Jan 19 31. Jan 19 -26,778 $36.98 $-989,021
01. Feb 19 Sell Charles Gray Individual 31. Jan 19 31. Jan 19 -23,584 $36.69 $-865,297
X
Management checks
We assess Teradyne's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Teradyne has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Ramp Up Holdings In Teradyne, Inc. (NASDAQ:TER)?

Below I take a look at three key features of what makes a robust defensive stock investment: its size, financial health and track record. … This continuous market outperformance demonstrates a strong track record of delivering robust returns over many years, raising my confidence in Teradyne as a long-term hold. … The intrinsic value infographic in our free research report helps visualize whether TER is currently mispriced by the market.

Simply Wall St -

How Should Investors Feel About Teradyne, Inc.'s (NASDAQ:TER) CEO Pay?

Check out our latest analysis for Teradyne How Does Mark Jagiela's Compensation Compare With Similar Sized Companies? … So Mark Jagiela receives a similar amount to the median CEO pay, amongst the companies we looked at. … Remuneration for Mark Jagiela is close enough to the median pay for a CEO of a similar sized company.

Simply Wall St -

Why We Like Teradyne, Inc.’s (NASDAQ:TER) 23% Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Here's Why We Think Teradyne (NASDAQ:TER) Is Well Worth Watching

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … It seems Teradyne is pretty stable, since revenue and EBIT margins are pretty flat year on year.

Simply Wall St -

What Are Analysts Saying About Teradyne, Inc.'s (NASDAQ:TER) Growth?

Looking at Teradyne, Inc.'s (NASDAQ:TER) earnings update in December 2018,. … the higher past 5-year average growth rate of 17%

Simply Wall St -

Teradyne, Inc. (NASDAQ:TER) Insiders Have Been Selling

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … That means that even when the share price was below the current price of US$41.78, an insider wanted to cash in some shares. … It's not ideal to see that insiders have sold at around the current price

Simply Wall St -

Does Teradyne, Inc. (NASDAQ:TER) Have A Good P/E Ratio?

To keep it practical, we'll show how Teradyne, Inc.'s (NASDAQ:TER) P/E ratio could help you assess the value on offer. … Teradyne has a price to earnings ratio of 16.44, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

At US$38.75, Is Teradyne, Inc. (NASDAQ:TER) Worth Looking At Closely?

led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, what if the stock is still a bargain.

Simply Wall St -

Introducing Teradyne, The Stock That Zoomed 108% In The Last Three Years

(NASDAQ:TER) share price has soared 108% in the last three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Teradyne was able to grow its EPS at 35% per year over three years, sending the share price higher.

Simply Wall St -

Should You Be Holding Teradyne, Inc. (NASDAQ:TER)?

Help shape the future of investing tools and receive a $20 prize! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a

Simply Wall St -

Company Info

Description

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 device package testing in automotive, industrial, communications, consumer, computer and electronic game, and other applications. This segment offers 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 use by semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. This segment 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 company’s System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems. Its Industrial Automation segment provides collaborative robots for manufacturing and light industrial customers. The company’s 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 (IoT) devices under the LitePoint brand name. This segment offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE-FDD, TD_LTE, and LTE-A technologies; modular wireless test instruments for design verification test and production testing of wireless components; lab-in-a-box zSeries solution for design verification of RF power amplifier and smart device RF front end modules; and test software for wireless chipsets. The company was founded in 1960 and is headquartered in North Reading, Massachusetts.

Details
Name: Teradyne, Inc.
TER
Exchange: NasdaqGS
Founded: 1960
$7,853,337,319
171,395,402
Website: http://www.teradyne.com
Address: Teradyne, Inc.
600 Riverpark Drive,
North Reading,
Massachusetts, 01864,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS TER Common Stock Nasdaq Global Select US USD 20. Oct 1970
DB TEY Common Stock Deutsche Boerse AG DE EUR 20. Oct 1970
LSE 0LEF Common Stock London Stock Exchange GB USD 20. Oct 1970
BMV TER * Common Stock Bolsa Mexicana de Valores MX MXN 20. Oct 1970
Number of employees
Current staff
Staff numbers
4,900
Teradyne employees.
Industry
Semiconductor Equipment
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:44
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/18
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.