Teradyne, Inc.
Instruments For Meas & Testing Of Electricity & Elec Signals
Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems, and wireless testing for devices.
It is a $63.0B technology company. Revenue grew 57.9% over the last year, it keeps 26¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 54.7× earnings — in the most expensive third of its own history.
- Website
- teradyne.com
- Location
- North Reading, MA
- Employees
- 6 600
- Sector
- Technology
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability, health and moat; Valuation and Growth lag behind.
Valuation10
- P/E vs own history86th pct · 0/25
- FCF yield1.3% · 5/25
- P/S14.1x · 5/25
- EV/EBITDA45.9x · 0/25
Growth25
- Revenue CAGR-3.7% · 0/25
- Net income CAGR-14.0% · 0/25
- EPS CAGR ~5Y-4.1% · 0/25
- Fwd implied growth49.1% · 25/25
Profitability95
- ROIC20.7% · 20/25
- ROE38.0% · 25/25
- Net margin25.8% · 25/25
- Operating margin30.2% · 25/25
Health75
- Altman Zn/a · 0/25
- Current ratio2.12 · 25/25
- Interest coverage135.7x · 25/25
- Net cash / debtNet cash · 25/25
Quality67
- Piotroski F5/9 · 15/25
- Beneish M-2.52 · 25/25
- FCF conversion70% · 15/25
- Margin stabilityσ 10.5% · 12/25
Moat80
- ROIC >12% years9/10 yrs · 25/25
- Median gross margin58.2% · 25/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst -2.5% · 5/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2021FinancialBest year on record$1.01B net income
- FY2017FinancialTurned profitable$258M net income after a loss year
- FY2016FinancialRevenue already above $1B$1.75B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2015AcquisitionTeradyne acquired Danish company Universal Robots in 2015
- 2011AcquisitionIt acquired LitePoint Corporation, a provider of test instruments for use with Wireless products, such as…
- 2000AcquisitionTeradyne Connection Systems acquired Herco Technologies and Synthane-Taylor
- 1987ProductThe company introduced the first analog VLSI test system, the A500
- 1961ProductD'Arbeloff and DeWolf sold their first product, a logic-controlled go/no-go diode tester, to Raytheon
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (59.2%)
- Strongly profitable — 25.8% net margin
- Revenue growing 57.9% year over year
- Strong cash conversion — FCF is 17.9% of revenue
- Net cash position after subtracting debt from cash
Watch-outs
- Loss-making in 1 of the recent years
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+57.9% YoY
- Profitable — makes more than it spends$1.15B TTM
- Profit growing — earnings are higher than last year-6.3% YoY
- Generates cash — cash left after running and investing$800M TTM
- Debt under control — could handle its obligationsmore cash than debt
- Established company — not a micro-cap — lower blow-up risk$63.0B market cap
- Not printing shares — share count not ballooning — you keep your slice-12.7% shares over ~5y
- Proven track record — years of profitability behind it9/10 profitable years
- Financially stable — balance sheet not near distresshealth score 50/100
- Pays a dividend — returns cash to shareholdersyield 0.12%
- Valuation not extreme — price not wildly above earningsP/E 54.7
Peer comparisonTeradyne, Inc. vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| TER this company | $63.0B | 54.7 | +57.9% | 25.8% | Mixed |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| MSFT Microsoft Corp | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
Head-to-head: TER vs NVDA · TER vs AAPL · TER vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/TER
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of TER on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $402.68 · market cap $63.0B.