Teradyne, Inc.(TER)Fundamental Analysis & FinancialsNASDAQ
Valuation, growth, margins and balance sheet
Valuation Snapshot
What the multiples imply about expectations
Market value is $34.07B, which makes it a large-cap company (market value of $10B to $200B). The trailing P/E is 25.08, between 15 and 30. Price-to-book is 9.24, above 5. EV/EBITDA is 19.12, at or below 20. 1 of 3 of these measures is above the level often used to mark a high valuation (P/E 30, price-to-book 5, EV/EBITDA 20).
Valuation Metrics
Ratios and multiples
Financial Health
Liquidity and leverage
The company's financial health appears excellent. High ROE and strong ROA reflect highly efficient capital use. Debt is manageable within acceptable ranges.
Valuation Multiples
Current valuation metrics
Quarterly Earnings History
Recent quarterly financial performance and trends
| Quarter | Revenue | Net Income | Gross Profit | EPS (Basic) | EPS (Diluted) | Gross Margin | Net Margin |
|---|---|---|---|---|---|---|---|
| Jun 2026(Latest) | $1.33B | $374.53M | $794.62M | $2.39 | $2.38 | 59.8% | 28.2% |
| Mar 2026 | $1.28B | $398.91M | $780.95M | $2.55 | $2.53 | 60.9% | 31.1% |
| Dec 2025 | $1.08B | $257.22M | $619.69M | $1.64 | $1.63 | 57.2% | 23.7% |
| Sep 2025 | $769.21M | $119.56M | $449.31M | $0.75 | $0.75 | 58.4% | 15.5% |
| Jun 2025 | $651.80M | $78.37M | $373.01M | N/A | N/A | 57.2% | 12.0% |
Key Insights:
- Revenue increased by 3.6% from previous quarter
- Net margin of 28.2% indicates strong profitability
- EPS declined by 5.9% quarter-over-quarter
Financial Efficiency
Utilization and collections performance
Asset Turnover 1.20 indicates high efficiency. Receivables Turnover 6.35 and DSO 57.44 reflect good collections. Working Capital Turnover 6.00 means yearly revenue is 6.00 times working capital. ROIC 45.8% highlights strong capital returns.
Efficiency Metrics
Profitability & Growth
Margins and earnings power
Efficiency Performance Matrix
4-quadrant analysis of operational efficiency vs profitability
Efficiency vs Profitability Quadrants
High Margin
Low Margin
High Margin
Low Margin
Efficiency Analysis
Asset Turnover
Receivables Turnover
Working Capital
Overall Efficiency Score
Strong operational efficiency with balanced profitability
⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.
• Bubble size represents ROIC magnitude
• Green (Optimal): Excellent efficiency-profitability balance
• Blue (Efficiency-Driven): High turnover, room to improve margins
• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency
• Red (Weak Operations): Areas needing improvement on both dimensions
Market Data & Share Structure
Comprehensive valuation metrics and ownership breakdown
Market Data & Capitalization
Share Statistics & Ownership
Profitability Margin Pyramid
Hierarchical view of margin compression from revenue to net income
Margin Hierarchy by Profitability Level
Margin Analysis
Total Revenue
Gross Profit
EBITDA
Net Income
Margin Quality Assessment
Excellent margin structure with strong bottom-line profitability
• Larger circles represent higher dollar amounts
• Margin percentages show profitability at each level
• Blue: Revenue base
• Green: Gross profitability
• Yellow: Operating performance
• Red: Net profitability
Operating Cash & Liquidity
Core cash generation and short-term solvency
Cash Flow Analysis
Operating Cash Flow (TTM)
$1.33B
Cash from core operations
Free Cash Flow (TTM)
$1.02B
Available after capex
Financial Position & Liquidity
Current Ratio
2.08
Healthy
Quick Ratio
1.18
Strong
Net Cash
$329.47M
Net creditor
Total Cash
$466.59M
Balance sheet cash
Total Debt
$137.12M
Outstanding borrowings
Cash Conversion Cycle
Working capital efficiency measurement
Days Sales Outstanding
57.4
days to collect payment
Days Inventory Outstanding
104.0
days to turn inventory
Cash Conversion Cycle
87.7
net days of cycle
Extended cash conversion cycle may tie up working capital.
Ownership & Shareholder Sentiment
Insider, institutional, and short interest positions
Insider Ownership
0.20%
Minimal stake
Short % of Float
5.82%
Notable short
Short Ratio (Days)
3.1d
days to cover
Ownership structure shows limited insider stake and mixed institutional participation.
Dividends & Shareholder Returns
Policy stance and implications
The company maintains a very sustainable dividend policy with a payout ratio of 5.9% (FCF coverage: 12.9x). Free cash flow was 12.9 times the dividends paid.
Explore More Analysis for TER
Additional research, tools, and technical breakdowns
Stock Analyzer Report
Deep-dive automated research and stock rating report.
DCF Fair Value Calculator
Discounted cash flow model and intrinsic value projection.
AI Price Predictions
Multi-scenario price predictions and consensus targets.
Insider Activity Tracker
Track buying/selling behavior of corporate insiders.
Earnings Calendar
Track upcoming and historical corporate earnings reports.
Market Insights & Research
Read the latest analysis articles and expert research.
Latest TER analysis
Teradyne Stock Technical Analysis 2026: Reading the Chart After TER’s 19% Single-Day CrashBy Vishal Jadaun
Teradyne Stock in 2026: Is TER a Good Buy After Its 19% Earnings Crash?By Vishal Jadaun
Latest TickZen Insights
AbbVie (ABBV) Q3 2026 Earnings Preview: Will Skyrizi and Rinvoq be able to justify the 20x?By Vishal Jadaun
Alphabet (GOOG) Q3 2026 Earnings Preview: Will Cloud Overtake Capex?By Vishal Jadaun
HSBC Q3 2026 Earnings Preview: Is the $46bn NII Guide Too Low?By Vishal Jadaun