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

1.5%

NasdaqGS:TER

1.1%

US Semiconductor

-1.0%

US Market


1 Year Return

34.9%

NasdaqGS:TER

5.2%

US Semiconductor

-0.4%

US Market

TER outperformed the Semiconductor industry which returned 1.5% over the past year.

TER outperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

TERIndustryMarket
7 Day1.5%1.1%-1.0%
30 Day17.4%-2.1%-3.3%
90 Day15.4%5.4%0.4%
1 Year36.1%34.9%7.2%5.2%1.8%-0.4%
3 Year160.9%154.1%71.3%61.3%39.4%30.4%
5 Year176.7%162.9%107.1%86.2%54.2%37.1%

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

19.97x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Teradyne's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Teradyne's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Teradyne is good value based on earnings compared to the US Semiconductor industry average.

Teradyne is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Teradyne is poor value based on expected growth next year.


Price Based on Value of Assets

Teradyne is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

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

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Teradyne's revenue is expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

Teradyne's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).

Teradyne's revenue growth is expected to exceed the United States of America market average.

Teradyne's earnings growth is positive but not above the United States of America market average.

Teradyne's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Teradyne is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

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 (152.4% vs 27.9%)

Teradyne's earnings growth has exceeded the US Semiconductor industry average in the past year (152.4% vs -0.5%).


Return on Equity

Teradyne has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Teradyne used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Teradyne has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Teradyne's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Teradyne's level of debt (26.2%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Teradyne's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (152.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 334.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.2x debt.


Next Steps

Dividend

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

0.78%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Teradyne's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Teradyne's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).

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

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

No need to calculate the sustainability of Teradyne's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Mark Jagiela (58yo)

5.5yrs

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

Mark's remuneration is about average for companies of similar size in United States of America.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

56yo

Average Age

The tenure for the Teradyne management team is about average.


Board Age and Tenure

7.0yrs

Average Tenure

65.5yo

Average Age

The tenure for the Teradyne board of directors is about average.


Insider Trading

Teradyne individual 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
Shares17,115
Max PriceUS$57.37
SellUS$571,00029 Jul 19
Bradford Robbins
EntityIndividual
Role
President
Shares10,000
Max PriceUS$57.10
SellUS$1,513,26829 Jul 19
Roy Vallee
EntityIndividual
Role
Chairman of the Board
Shares26,516
Max PriceUS$57.07
SellUS$309,41329 Jul 19
Charles Gray
EntityIndividual
Role
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
Shares500
Max PriceUS$57.00
SellUS$1,324,04930 Apr 19
Michael Bradley
EntityIndividual
Role
Member of the Board of Directors
Shares27,049
Max PriceUS$48.95
SellUS$494,59630 Apr 19
Bradford Robbins
EntityIndividual
Role
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
President
Member of the Board of Directors
Shares36,529
Max PriceUS$39.20
SellUS$412,79605 Feb 19
Gregory Smith
EntityIndividual
Role
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
VP, General Counsel & Secretary
Shares23,584
Max PriceUS$36.69

Ownership Breakdown


Management Team

  • Charles Gray (57yo)

    VP, General Counsel & Secretary

    • Tenure: 10.3yrs
    • Compensation: $1.70m
  • Jürgen von Hollen

    President of Universal Robots

    • Tenure: 1.8yrs
  • Amy McAndrews (47yo)

    Vice President of Finance

  • Walter Vahey (54yo)

    Executive Vice President of Corporate Development

    • Tenure: 0.6yrs
    • Compensation: $1.34m
  • Michal Kimeldorfer-Rabinowitz

    Vice President of Human Resources

  • Brad Robbins (60yo)

    President

    • Tenure: 5.0yrs
    • Compensation: $1.32m
  • Mark Jagiela (58yo)

    President

    • Tenure: 5.5yrs
    • Compensation: $7.17m
  • Andy Blanchard

    Vice President of Corporate Relations

  • Sanjay Mehta

    CFO, VP & Treasurer

    • Tenure: 0.3yrs
  • Gregory Smith (55yo)

    President of Semiconductor Test

    • Tenure: 3.5yrs
    • Compensation: $1.81m

Board Members

  • Mercedes Johnson (65yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: $245.00k
  • Ed Gillis (70yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: $270.00k
  • Mike Bradley (70yo)

    Director

    • Tenure: 15.3yrs
    • Compensation: $245.00k
  • Paul Tufano (65yo)

    Director

    • Tenure: 14.4yrs
    • Compensation: $245.00k
  • Roy Vallee (66yo)

    Independent Chair of the Board

    • Tenure: 5.3yrs
    • Compensation: $300.00k
  • Tim Guertin (69yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: $265.00k
  • Mark Jagiela (58yo)

    President

    • Tenure: 5.5yrs
    • Compensation: $7.17m
  • Marilyn Matz (65yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: $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$8.999b
  • Shares outstanding: 169.95m
  • Website: Click here

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 Analysis2019/08/16 23:45
End of Day Share Price2019/08/16 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.