Stock Analysis
Teradyne, Inc. Common StockTER
P/E 44.17×· 5Y range 15.50–123.58×· 75th percentile of history
Sector: Technology · Industry: Instruments For Meas & Testing Of Electricity & Elec Signals
AnalystsStrong Buy22 analystsP/E 44.2× sits at the 75th percentile of its 5.086926762491444-year history.
Cash covers 147% of debt · FY 2025.
PMP Verdict
High quality, fairly valued
Strengths
- Profitability100
- Financial Health93
Risks
- Growth20
Strong fundamentals at a reasonable valuation.
Market context
-5.3% today· Z 1.7σ
Bull Case
- ✓Altman Z 24.0 — safe-zone balance sheet
- ✓ROE 41.1% — efficient capital deployment
- ✓Interest coverage 148.9× — debt well covered
What's happening with TER
Profile
Strong profitability, financial health and moat; valuation and growth lag behind.
How is each axis scored?
- Valuation20/100 · Weak
- P/E vs own history (75th pct)5/25
- FCF yield (1.6%)5/25
- P/S (11.3x)5/25
- EV/EBIT (37.2x)5/25
- Growth20/100 · Weak
- Revenue CAGR (-3.7%)0/25
- Net income CAGR (-14.0%)0/25
- EPS CAGR 5Y (-11.0%)0/25
- Fwd implied growth (19.2%)20/25
- Profitability100/100 · Strong
- ROIC (39.5%)25/25
- ROE (41.1%)25/25
- Net margin (25.8%)25/25
- Operating margin (30.2%)25/25
- Financial Health93/100 · Strong
- Altman Z (24.00)25/25
- Current ratio (1.75)18/25
- Interest coverage (148.9x)25/25
- Net cash / debt (Net cash)25/25
- Quality67/100 · Moderate
- Piotroski F (5/9)15/25
- Beneish M (-2.52)25/25
- FCF conversion (70%)15/25
- Margin stability (σ 10.5%)12/25
- Moat80/100 · Strong
- ROIC >12% years (9/10 yrs)25/25
- Median gross margin (58.2%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst -2.5%)5/25
Risk Flags
- ⚠Revenue shrinking 3.7%/yr
About Teradyne, Inc. Common Stock
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. Show more
The firm entered the industrial automation market in 2015 and sells collaborative and autonomous robots for factory applications. Teradyne serves numerous end markets and geographies, directly and indirectly, through its products, but its most significant exposure is to semiconductor testing. Teradyne serves vertically integrated, fabless, and foundry chipmakers with its equipment.
Headquarters: NORTH READING, MA · Employees: 6,600 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
20EP/E (TTM)43.8xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 15.5x–123.6x · 75th pct
P/FCF67.0xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield1.6%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 0.7%–6.4% · 17th pct
P/S (TTM)11.28xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 3.7x–19.6x · 85th pct
EV/EBIT37.2xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 12.8x–107.1x · 75th pct
EV/Sales11.9xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E36.7xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio18.01xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.01B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield0.15%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio6.8%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
100A+ROIC39.5%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE41.1%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA26.3%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin25.8%A
Grade A: HighNet Income / Revenue
Operating Margin30.2%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin59.2%A
Grade A: PremiumGross Profit / Revenue
FCF Margin17.9%A
Grade A: HighFCF / Revenue
True FCF Margin16.3%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
20ERevenue CAGR-3.7%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR-14.0%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)-11.0%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth19.2%C
Grade C: MedAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-16.5%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income6.4%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue1.7%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
93A+Altman Z-Score24.00A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.75xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.34xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage148.9xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.07xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt1.47xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
67BPiotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.52A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion69.5%C
Grade C: AverageFCF / Net Income
Margin Stability10.5%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue5.9%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.02xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
JOHNSON MERCEDES Filed | JOHNSON MERCEDES | SellOpen market sale | -167 | |
Herweck Peter Filed | Herweck Peter | BuyJ | +4 | |
MADDOCK ERNEST E Filed | MADDOCK ERNEST E | BuyJ | +2 | |
TUFANO PAUL J Filed | TUFANO PAUL J | BuyJ | +19 | |
Henry Andrew Chisholm Filed | Henry Andrew Chisholm | Grant / award | +64 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Herweck Peter Filed | Herweck Peter | Grant / award | +77 | |
TUFANO PAUL J Filed | TUFANO PAUL J | Grant / award | +141 | |
MATZ MARILYN Filed | MATZ MARILYN | SellOpen market sale | -400 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
80AROIC >12% Years9/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)58.2%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-2.5%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$7.36
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$2.27
Cash & short-term investments per share (Finnhub)
Book Value / Share$21.98
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$200.00M
Total debt obligations (short + long term)
Cash & Equiv.$293.75M
Cash and short-term investments
Net Debt$-93.75MA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$2.80B
Shareholders' equity (book value)
Asset / Liability3.01xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$50.34B
Current Market Capitalization
Beta1.69C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Teradyne, Inc. Common Stock (TER)
TER is down 5.31% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for Teradyne, Inc. Common Stock. Altman Z-Score of 24.00 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.52 suggests a low likelihood of earnings manipulation. Revenue has been contracting (CAGR ≈ -4%), which weighs on the growth outlook.
- Teradyne, Inc. Common Stock converts about 18% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- Teradyne, Inc. Common Stock posted a net loss in 1 of 10 available completed fiscal years (2016–2025).
- At a valuation score of 20/100, TER trades at a premium to its historical multiples (P/E 43.8).
- Return on equity of 41.1% is well above the market average.
See how TER ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all TER moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 14 | After-hours | 349.66 | -8.05% | -2.68 |
| Oct 12 | After-hours | 381.00 | -5.38% | -2.14 |
Frequently Asked Questions about TER
What is the current Teradyne, Inc. Common Stock (TER) stock price?
TER is trading at $325.00 at the last market close, down 5.31% on the session. PreMarketPrice tracks TER pre-market, intraday and after-hours prices.
Is TER stock a buy right now?
PreMarketPrice's quantitative model rates Teradyne, Inc. Common Stock's financial health at 93/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is TER stock overvalued?
Teradyne, Inc. Common Stock trades at a trailing P/E of 43.8 and our valuation score rates it 20/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Teradyne, Inc. Common Stock report earnings?
No confirmed earnings date is currently scheduled for TER. The Earnings section lists recent reports and updates as dates are announced.
What sector does Teradyne, Inc. Common Stock operate in?
Teradyne, Inc. Common Stock operates in the Technology sector, within the Instruments For Meas & Testing Of Electricity & Elec Signals industry. The Related Stocks section lists sector peers for comparison.
What does Teradyne, Inc. Common Stock do?
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.
About Teradyne, Inc. Common Stock (TER) Stock
Teradyne, Inc. Common Stock (TER) is a US-listed stock operating in the Technology sector, specifically the Instruments For Meas & Testing Of Electricity & Elec Signals industry. As of the latest update, Teradyne, Inc. Common Stock is trading at $325.00, down 5.31% on the day with a market capitalization of $50.3 billion. The financial health score for TER is 93/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for TER stock.
TER Stock Analysis & Key Metrics
On PreMarketPrice, you can track Teradyne, Inc. Common Stock (TER) across multiple dimensions:
- Pre-market price & movement: Real-time TER stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for TER with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Teradyne, Inc. Common Stock across multiple reporting periods.
- Financial health score: A composite score of 93/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for TER.
- Sector peers: Compare TER against 5 other technology stocks on key financial metrics.
Is TER a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Teradyne, Inc. Common Stock (TER) as an investment. The financial health score of 93/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Teradyne, Inc. Common Stock (TER) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.