Teradyne, Inc (TER)
Information Technology · Semiconductor Materials & Equipment · US stock · S&P 500 component
$308.75
▼ -36.74 (10.63%)
Fair valueFair
$288 −6.6% to fair value
$144fair band $245–$349$432
Day's range
$306.84 – $323.88
52-week range
$135.83 – $487.91
About Teradyne, Inc
Teradyne designs and manufactures automated test equipment, which chipmakers use to check semiconductors for defects before they are shipped. It also makes testing systems for electronics and storage devices, and it operates a robotics business that includes collaborative robots, which work alongside people, and mobile robots used in factories and warehouses. Its customers are semiconductor manufacturers, electronics makers and industrial companies.
Teradyne earns revenue from the supply of testing systems, robots and related support. Sales for the last twelve months came to $4.5 billion, and growth over the last three years was 0.4% a year. The operating margin is 30.2%, and the business earns a profit of 38% on the capital invested in it. It has net debt of -0.2 times EBITDA, meaning more cash than debt. A dividend is paid, with a yield of 0.2%. On the site's X-Ray Score it receives 47 out of 100.
Price chart
52-wk range $135.83 – $487.91Volume 5,871,064Daily, split-adjusted
Vitals
Market cap$48.7B
52-week range$135.83 – $487.91
Volume (last day)5,871,064
P/E (TTM)42.6
EBIT / EV yield2.8%
Free-cash-flow yield1.6%
Dividend yield0.2%
Revenue (TTM)$4.5B
Net income (TTM)$1.2B
Operating margin30.2%
Return on capital37.8%
Debt incl. leases$0
Cash & securities$350M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$288middle half of models $273 – $298
Fair
−6.6% to fair value
Average of the 10 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Low, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $309
Undervalued < $245Fair $245 – $349Overvalued > $349
P/E multiple
$298
P/B multiple
$230
P/S multiple
$261
EV/EBITDA multiple
$298
EV/EBIT multiple
$276
EV/revenue multiple
$272
10-year DCF, EBITDA exit
$297
5-year DCF, EBITDA exit
$336
10-year DCF, revenue exit
$290
5-year DCF, revenue exit
$324
10-year DCF, growth exit · not used
$113
5-year DCF, growth exit · not used
$106
Dividend discount, stable · not used
$20
Dividend discount, multi-stage · not used
$23
Earnings power value · not used
$110
Growth the price implies
32.5%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
39/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield2.8%
Free-cash-flow yield1.6%
Fair value vs price0.9×
Growth
Weak
28/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)0.4%
EPS growth (3y)-6.3%
Growth consistency80%
Profitability
Fair
55/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital37.8%
Operating margin30.2%
Gross profitability53.7%
Financial health
Strong
71/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA-0.2×
Interest coverNo interest cost
Dividends
Weak
37/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield0.2%
Dividends vs free cash flow10%
Dividend growth3.1%
Quarterly results: last 6 quarters
+14.3%
Mar '25
-10.7%
Jun '25
+4.3%
Sep '25
+43.9%
Dec '25
+87.0%
Mar '26
+103.9%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.3B, diluted EPS $2.38.
Compare with peers
LRCX Lam Research Corp58 KLAC Kla Corp50 AMAT Applied Materials Inc49 Q Qnity Electronics, Inc...41Other Semiconductor Materials & Equipment companies by X-Ray Score.
SWOT analysis: Teradyne, Inc
Strengthsinside the company
- Return on invested capital is 37.8%, against a median of 39.7% for industry peers.
- Cash exceeds debt (net debt is negative), which gives room to invest or ride out a downturn.
- Operating profit covers interest 119x, so debt costs are a small drag.
Weaknessesinside the company
- Earnings per share have declined 6.3% a year over three years.
Opportunitiesvaluation and setting
- Revenue growth picked up to 13.1% last year from 0.4% a year over three years.
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- The price trend is down on the daily and weekly signals.
- Earnings in Semiconductor Materials & Equipment follow the industry cycle, so margins and profits can swing from year to year.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare TER with peers and sector
Medians of 4 Semiconductor Materials & Equipment peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): AMAT 49, LRCX 58, KLAC 50, Q 41.
| Metric | TER | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 47 | 50 | 50 |
| Valuation | 38 | 34 | 52 |
| Growth | 28 | 36 | 54 |
| Profitability | 55 | 64 | 49 |
| Financial health | 71 | 69 | 49 |
| Dividends | 37 | 52 | 51 |
Sector leaders: highest X-Ray Score in Information Technology
TER ranks #47 of 75 in Information Technology and #4 of 5 in Semiconductor Materials & Equipment by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for TER
Each factor is rated by where TER stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 5 Average · 10 Bad of 23
Growth: 0 · 1 · 2
Profitability: 4 · 1 · 0
Financial strength: 3 · 1 · 0
Valuation: 0 · 2 · 3
Cash flow: 0 · 0 · 4
Efficiency: 1 · 0 · 1
| Factor | TER | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +0.4% | Bad beats 21% | +9.7% | – | – |
| Revenue growth, last year | +13.1% | Average beats 47% | +13.7% | +5.4% | ▲ Better |
| EPS growth, 3 years a year | −6.3% | Bad beats 20% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 59.2% | Average beats 54% | 57.8% | 58.5% | ≈ In line |
| Operating margin | 30.2% | Good beats 69% | 20.3% | 21.1% | ▲ Better |
| Net margin | 25.8% | Good beats 69% | 17.8% | 19.2% | ▲ Better |
| Return on invested capital | 37.8% | Good beats 74% | 19.4% | – | – |
| Return on equity | 33.5% | Good beats 68% | 21.0% | 19.8% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | -0.2x | Good beats 83% | 0.8x | – | – |
| Interest cover | 118.8x | Good beats 93% | 23.0x | 50.0x | ▲ Better |
| Current ratio | 2.12 | Good beats 67% | 1.57 | 3.03 | ▼ Worse |
| Piotroski F-score | 6 / 9 | Average beats 43% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 42.3x | Average beats 34% | 33.6x | 37.9x | ▼ Worse |
| Price / book | 14.2x | Bad beats 31% | 8.3x | 7.3x | ▼ Worse |
| Price / sales | 10.9x | Bad beats 30% | 6.9x | 7.3x | ▼ Worse |
| EV / EBITDA | 32.6x | Average beats 35% | 24.7x | – | – |
| Free cash flow yield | 1.6% | Bad beats 19% | 3.4% | 2.4% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 17.9% | Bad beats 30% | 22.3% | 15.9% | ▲ Better |
| Cash from operations / net income | 0.93 | Bad beats 16% | 1.39 | 1.22 | ▼ Worse |
| Free cash flow growth, 3 years a year | +2.8% | Bad beats 24% | +15.4% | – | – |
| Accruals (lower is better) | +1.7% | Bad beats 11% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 4.5x | Good beats 69% | 3.9x | 3.9x | ▲ Better |
| Days sales outstanding | 91 days | Bad beats 9% | 63 days | 58 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 7 Good · ● 3 Average · ● 6 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldBad
Risk models
Altman Z''Good
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Bad
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioGood
Net debt / EBITDAGood
Interest coverGood
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 49/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $3.7B | $3.2B | $2.7B | $2.8B | $3.2B |
| Operating income | $1.2B | $832M | $501M | $594M | $650M |
| Net income | $1.0B | $716M | $449M | $542M | $554M |
| Operating cash flow | $1.1B | $578M | $585M | $672M | $674M |
| Operating margin | 32.4% | 26.4% | 18.7% | 21.1% | 20.4% |
| Free cash flow | $966M | $415M | $426M | $474M | $450M |
| Diluted EPS | $5.53 | $4.22 | $2.73 | $3.32 | $3.47 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bearish
3 bullish · 1 neutral · 12 bearish
Weekly
Bearish
4 bullish · 1 neutral · 7 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 352.1 | Bearish |
| EMA 10 | 349.2 | Bearish |
| SMA 20 | 383.7 | Bearish |
| EMA 20 | 365.2 | Bearish |
| SMA 50 | 376.4 | Bearish |
| EMA 50 | 373.3 | Bearish |
| SMA 100 | 379.6 | Bearish |
| EMA 100 | 367.5 | Bearish |
| SMA 200 | 346.9 | Bearish |
| EMA 200 | 333.5 | Bearish |
Oscillators (daily)
| RSI (14) | 32.91 | Neutral |
| MACD (12, 26) | -14.98 | Bearish |
| Momentum (12) | -28.25 | Bearish |
| Stochastic %K (14) | 1.35 | Bullish |
| Williams %R (14) | -98.65 | Bullish |
| CCI (20) | -142.5 | Bullish |
Pivot points (classic, last session)
S3 285.4 | S2 296.1 | S1 302.4 | Pivot 313.2 | R1 319.5 | R2 330.2 | R3 336.5 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.51 USD
Yield on today's price
0.17%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.1300 | |
| 0.1300 | |
| 0.1300 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 | |
| 0.1200 | |
| 0.1100 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold TER
| ETF | Share of the fund |
|---|---|
| ARKX ARK Space Exploration & Innovation | 3.96% |
| SOXX iShares Semiconductor | 3.36% |
| PSI Invesco Dynamic Semiconductors | 3.02% |
| QTEC First Trust NASDAQ-100-Technology Sect... | 2.71% |
| CHPY YieldMax Semiconductor Portfolio Optio... | 2.54% |
| SOXL Direxion Daily Semiconductor Bull 3X | 2.24% |
| SOXQ Invesco PHLX Semiconductor | 2.15% |
| WTAI WisdomTree Artificial Intelligence and... | 2.09% |
The eight funds with the largest weight in TER among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
TER stock splits
TER has split its stock 2 times since 1995. The latest was a 2-for-1 split on 1 Sep 1999.
Full TER stock split history →TER SEC filings
8-KSEC EDGAR
Entered a material agreement
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
10-KSEC EDGAR
Annual report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.