TERADYNE, INC (TER)
Instruments For Meas & Testing of Electricity & Elec Signals · Instruments For Meas & Testing of Electricity & Elec Signals · NASDAQ
$379.65
-6.09%
Investingg Score
48.5 / 100
Sell
Business overview
- Gross margin of 58.2%
- Operating margin of 20.4%
- FCF margin of 14.1%
These strong operating and gross margins indicate efficient core business profitability, though the overall business quality pillar score of 54 leaves room for uncertainty regarding future margin sustainability.
Financial health
- Balance Sheet pillar score of 55
- FCF margin of 14.1%
These figures indicate adequate underlying financial health and cash generation capabilities, though there is uncertainty given the limited granular debt data provided.
- Gross Margin
- 58.2%
- Operating Margin
- 20.4%
- Current Ratio
- 1.7x
- Debt / Equity
- Data unavailable
- Free Cash Flow (TTM)
- $0.5B
- Interest Coverage
- 95x
Valuation
- P/E ratio of 61.01
- Forward P/E of 35.3
- Price-to-sales ratio of 14.7
- FCF yield of 0.8%
These elevated valuation multiples and low free cash flow yield suggest that a high price is currently demanded for the company's earnings power, leading to a weak valuation pillar score of 29.
- P/E (TTM)
- 61.0x
- Forward P/E
- 35.3x
- Price / Sales
- 14.7x
- EV / EBITDA
- Data unavailable
- FCF Yield
- 0.8%
Key risks
- High P/E ratio of 61.01 creates valuation risk if earnings fail to accelerate.
- Low FCF yield of 0.8% limits cash returns relative to the current market cap.
- Slow EPS growth YoY of 4.5% compared to revenue growth of 13.1% indicates margin compression or rising expenses.
Market cap $59.3B · data as of 2026-08-20
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Analyze TER with Investingg AINot investment advice. Investingg AI summarizes public data and AI-generated analysis for informational purposes only.