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Teradyne, Inc. (TER)

POSITIVE
TechnologySemiconductor Equipment & MaterialsUnited States

Price

$403.20

Market Cap

$63.12B

Fundamental

69

Technical

85

Composite

74

AI Analysis

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Overview

Teradyne, Inc. engages in the design, development, manufacture, and sale of automated test systems and robotics products in the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through Semiconductor Test, Robotics, and Other segments. The Semiconductor Test segment offers products and services for wafer level and device package testing, and system level testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; 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 semiconductor assembly and test providers. The Robotics segment provides collaborative robotic arms and autonomous mobile robots for manufacturing, logistics, and industrial customers. It also provides product test instruments which includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.

Balance Sheet & Liquidity

Revenue

$1.28B

Net Income

$399M

Free Cash Flow

$198M

Total Equity

$3.14B

Total Liabilities

$1.29B

Current Ratio

2.15

Interest Coverage

150.11

Debt/EBITDA

2.73

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Overvalued

Fair Value

$196.88

Current Price

$403.20

Margin of Safety

-104.8%

Fair Value Range

$127.97 - $265.79

Estimation Methods

Analyst Target:$374.82
DCF:$16.49
PE-based:$246.12
Graham Growth:$40.39
EPV:$35.03
Analyst Consensus:Buy (16B / 6H / 1S)
Last Earnings Surprise:+20.53%

Valuation Metrics

P/E Ratio

158.12

ROE

12.7%

P/B Ratio

20.08

P/FCF

319.05

Gross Margin

60.9%

ROIC

10.9%

Value Creation (Economic Moat)

ROIC

10.9%

WACC

14.1%

ROIC − WACC

-3.1 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • EPS CAGR 42.99%
  • Price CAGR 31.85%
  • ROIC 10.9%
  • Gross Margin 60.9%
  • Debt/Equity ratio
  • Operating Margin 36.9%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 29.7%
  • Analyst Consensus 70% Buy
  • Earnings Surprise avg 14.5%
  • Share Dilution -1.7%
  • Net Margin Trend 31.1% vs 17.4%
  • Piotroski F-Score 6/9

Failed (7)

  • P/FCF 319.05
  • P/B Ratio 20.08
  • CapEx intensity
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Revenue Growth 5Y 0.4%
  • Earnings Quality (OCF/NI) 0.66

Unavailable (2)

  • Dividend Payout NaN%
  • PEG Ratio (need PE > 0 and growth > 0)

Price Chart

Technical Indicators

RSI (14)

57.52

SMA 50

$364.54

SMA 200

$247.33

MACD

0.45

Volatility

3.9%

Momentum (12m)

369.3%

RSI 57.5, SMA trend bullish, momentum 369.3%.

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

0.66

Moderate: some gap between profits and cash

Share Dilution

-170.0%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Gregory Stephen SmithPresident, CEO & Director61
Ms. Michelle L. TurnerVP, CFO, Treasurer & Principal Accounting Officer51
Mr. Ryan E. DriscollVice President, General Counsel & Secretary47
Mr. Sanjay MehtaExecutive Advisor56
Mr. Shannon John PoulinPresident of Semiconductor Test Division54
Mr. Regan MillsPresident of Product Test Group55
Ms. Shannon GathVP & Chief Information Officer-
Mr. Jim MahonVP & Chief Human Resources Officer-
Mr. Jean-Pierre HathoutPresident of the Teradyne Robotics55
Mr. James DavidsonChief Artificial Intelligence Officer-

Audit Risk

4

Board Risk

2

Compensation Risk

4

Shareholder Rights Risk

1

Latest News

Recent headlines for TER, sourced from Markets Gazette.

  • 4/24/2026NEUTRAL
    Here's How Much $100 Invested In Teradyne 5 Years Ago Would Be Worth Today

    An investment of $100 in Teradyne Inc. five years ago would have grown to approximately $220 today, representing a compound annual growth rate of about 17%. This performance reflects the company's trajectory in the semiconductor test equipment market. While past performance is not indicative of future results, this historical return provides context for the stock's valuation and investor sentiment over the medium term. Investors should consider current market conditions and Teradyne's future growth prospects.

  • 4/10/2026NEUTRAL
    Here's How Much You Would Have Made Owning Teradyne Stock In The Last 5 Years

    An analysis of Teradyne Inc. stock performance over the past five years reveals a complex investment journey. While specific return figures are not detailed in the provided snippet, such historical performance reviews typically highlight periods of significant growth and potential drawdowns. Investors often use this data to gauge a company's resilience, growth trajectory, and management's effectiveness in navigating market cycles. The article likely aims to provide context for current investment decisions by illustrating past trends in revenue, profitability, and stock price movements, offering insights into the company's long-term value creation potential.

  • 3/9/2026POSITIVE
    If You Invested $100 In Teradyne Stock 5 Years Ago, You Would Have This Much Today

    An investment of $100 in Teradyne Inc. (TER) five years ago would have yielded a significant return, illustrating the company's strong performance and growth trajectory. While specific figures are not provided in the summary, the premise suggests substantial capital appreciation for shareholders. This performance likely stems from advancements in Teradyne's semiconductor test equipment and automation solutions, catering to growing demand in sectors like AI and high-performance computing. Investors considering Teradyne should evaluate its competitive positioning and future innovation pipeline.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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