(TER) Teradyne - Overview
Sector: Technology | Industry: Semiconductor Equipment & Materials | Exchange: NASDAQ (USA) | Market Cap: 57.395m USD | Total Return: 308.6% in 12m
Industry Rotation: -9.0
Avg Turnover: 1.34B
EPS Trend: 27.1%
Qual. Beats: 3
Rev. Trend: 40.9%
Qual. Beats: 3
Warnings
No concerns identified
Tailwinds
Leader, Confidence
Teradyne, Inc. designs and manufactures automated test equipment and robotics solutions for global markets. The company operates through distinct segments focused on semiconductor testing and industrial robotics. Its testing platforms, including the FLEX and Magnum systems, provide critical quality assurance for logic, RF, and memory chips used in automotive, consumer electronics, and cloud computing infrastructure.
The business model relies on high technical integration with integrated device manufacturers (IDMs) and fabless semiconductor firms. As chip architectures become more complex, the demand for sophisticated system-level testing increases to ensure yield and reliability. Teradyne’s robotics division expands its reach into industrial automation through collaborative robotic arms and autonomous mobile robots (AMRs), addressing labor shortages and efficiency in manufacturing and logistics.
The semiconductor equipment sector is characterized by high cyclicality and heavy R&D investment requirements to keep pace with Moores Law. For those analyzing long-term growth drivers, ValueRay provides deeper insights into the companys competitive positioning. Teradyne also maintains a presence in the defense and aerospace sectors through specialized circuit-board and wireless test instrumentation.
- High-end smartphone chip complexity drives demand for advanced semiconductor test platforms
- Global manufacturing labor shortages accelerate adoption of collaborative robotics and autonomous mobile robots
- Recovery in automotive and industrial semiconductor markets stabilizes core testing equipment revenue
- Geopolitical trade restrictions on advanced chip equipment impact sales to Chinese semiconductor manufacturers
| Net Income: 854.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -3.94 > 1.0 |
| NWC/Revenue: 30.66% < 20% (prev 38.08%; Δ -7.42% < -1%) |
| CFO/TA 0.18 > 3% & CFO 777.9m > Net Income 854.1m |
| Net Debt (-159.5m) to EBITDA (1.11b): -0.14 < 3 |
| Current Ratio: 2.15 > 1.5 & < 3 |
| Outstanding Shares: last quarter (157.6m) vs 12m ago -2.69% < -2% |
| Gross Margin: 58.79% > 18% (prev 0.59%; Δ 5.82k% > 0.5%) |
| Asset Turnover: 93.05% > 50% (prev 78.41%; Δ 14.64% > 0%) |
| Interest Coverage Ratio: 69.13 > 6 (EBITDA TTM 1.11b / Interest Expense TTM 14.6m) |
| A: 0.26 (Total Current Assets 2.17b - Total Current Liabilities 1.01b) / Total Assets 4.43b |
| B: 0.25 (Retained Earnings 1.12b / Total Assets 4.43b) |
| C: 0.25 (EBIT TTM 1.01b / Avg Total Assets 4.07b) |
| D: 0.87 (Book Value of Equity 1.12b / Total Liabilities 1.29b) |
| Altman-Z'' Score: 5.11 = AAA |
| DSRI: 1.85 (Receivables 1.11b/460.4m, Revenue 3.79b/2.91b) |
| GMI: 1.01 (GM 58.79% / 59.36%) |
| AQI: 0.99 (AQ_t 0.36 / AQ_t-1 0.36) |
| SGI: 1.30 (Revenue 3.79b / 2.91b) |
| TATA: 0.02 (NI 854.1m - CFO 777.9m) / TA 4.43b) |
| Beneish M-Score: -2.09 (Cap -4..+1) = BB |
Over the past week, the price has changed by -6.08%, over one month by -7.42%, over three months by +10.59% and over the past year by +308.64%.
- StrongBuy: 9
- Buy: 2
- Hold: 4
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 369.5 | 9.4% |
P/E Forward = 51.0204
P/S = 15.1563
P/B = 17.9143
P/EG = 1.4235
Revenue TTM = 3.79b USD
EBIT TTM = 1.01b USD
EBITDA TTM = 1.11b USD
Long Term Debt = 82.4m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 18.4m USD (from shortTermDebt, last quarter)
Debt = 82.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -159.5m USD (from netDebt column, last quarter)
Enterprise Value = 57.23b USD (57.39b + Debt 82.4m - CCE 245.6m)
Interest Coverage Ratio = 69.13 (Ebit TTM 1.01b / Interest Expense TTM 14.6m)
EV/FCF = 103.5x (Enterprise Value 57.23b / FCF TTM 553.2m)
FCF Yield = 0.97% (FCF TTM 553.2m / Enterprise Value 57.23b)
FCF Margin = 14.61% (FCF TTM 553.2m / Revenue TTM 3.79b)
Net Margin = 22.55% (Net Income TTM 854.1m / Revenue TTM 3.79b)
Gross Margin = 58.79% ((Revenue TTM 3.79b - Cost of Revenue TTM 1.56b) / Revenue TTM)
Gross Margin QoQ = 60.89% (prev 57.49%)
Tobins Q-Ratio = 12.91 (Enterprise Value 57.23b / Total Assets 4.43b)
Interest Expense / Debt = 8.89% (Interest Expense 7.33m / Debt 82.4m)
Taxrate = 13.35% (62.2m / 465.7m)
NOPAT = 871.8m (EBIT 1.01b * (1 - 13.35%))
Current Ratio = 2.15 (Total Current Assets 2.17b / Total Current Liabilities 1.01b)
Debt / Equity = 0.03 (Debt 82.4m / totalStockholderEquity, last quarter 3.14b)
Debt / EBITDA = -0.14 (Net Debt -159.5m / EBITDA 1.11b)
Debt / FCF = -0.29 (Net Debt -159.5m / FCF TTM 553.2m)
Total Stockholder Equity = 2.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 20.99% (Net Income 854.1m / Total Assets 4.43b)
RoE = 29.72% (Net Income TTM 854.1m / Total Stockholder Equity 2.87b)
RoCE = 34.04% (EBIT 1.01b / Capital Employed (Equity 2.87b + L.T.Debt 82.4m))
RoIC = 29.82% (NOPAT 871.8m / Invested Capital 2.92b)
WACC = 14.19% (E(57.39b)/V(57.48b) * Re(14.20%) + D(82.4m)/V(57.48b) * Rd(8.89%) * (1-Tc(0.13)))
Discount Rate = 14.20% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -64.44 | Cagr: -1.24%
[DCF] Terminal Value 59.48% ; FCFF base≈575.3m ; Y1≈586.3m ; Y5≈646.1m
[DCF] Fair Price = 33.91 (EV 5.15b - Net Debt -159.5m = Equity 5.31b / Shares 156.5m; r=14.19% [WACC]; 5y FCF grow 1.70% → 3.0% )
EPS Correlation: 27.11 | EPS CAGR: 22.12% | SUE: 3.34 | # QB: 3
Revenue Correlation: 40.93 | Revenue CAGR: 11.92% | SUE: 1.88 | # QB: 3
EPS current Quarter (2026-06-30): EPS=2.04 | Chg30d=+6.69% | Revisions=+41% | Analysts=16
EPS next Quarter (2026-09-30): EPS=1.38 | Chg30d=+16.88% | Revisions=+56% | Analysts=16
EPS current Year (2026-12-31): EPS=7.18 | Chg30d=+14.15% | Revisions=+78% | GrowthEPS=+81.3% | GrowthRev=+39.8%
EPS next Year (2027-12-31): EPS=9.51 | Chg30d=+15.16% | Revisions=+79% | GrowthEPS=+32.5% | GrowthRev=+22.3%
[Analyst] Revisions Ratio: +79%