Fundamental analysis · SEC EDGAR · TTM through 28/06/2026

Fundamental analysis of Teradyne, Inc

TER · Nasdaq · Utilities

Fundamental quality

ATTRACTIVE

80

out of 100

Teradyne, Inc runs like a cash machine: it converts about 17.9% of revenue into free cash flow and holds a 25.8% net margin, though it grows at a measured pace. On fundamental quality it scores 80 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +6.7%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Teradyne makes the machines that test chips before they leave the factory: every processor in a phone or a car passes through its equipment or its rival Advantest's. It also has a growing collaborative industrial robot business.

What will shape its future

  • The semiconductor cycle: more chips made means more testers needed.
  • The growing complexity of AI chips, demanding more expensive test equipment.
  • Its robotics arm (Universal Robots), a growth option outside the chip cycle.

Breakdown by area

I.Growth
55

EPS growth: 10.2% · Revenue growth: 6.7%

II.Profitability
93

Net margin: 25.8% · ROE: 33.5% · ROIC: 37.8%

III.Financial health
93

Net debt/EBITDA: -0.24x · FCF: 17.9%

Source: SEC EDGAR · TTM through 28/06/2026

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 24 Utilities companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 96%
ROEbeats 92%
Growthbeats 38%
Cash generationbeats 95%
Less debtbeats 95%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Teradyne, Inc strengths

  • Outstanding return on equity (ROE of 33.5%): it puts shareholder capital to good use.
  • High gross margin (59.2%), pointing to pricing power.
  • Strong free-cash-flow generation (FCF margin of 17.9%): profit turns into real cash.
  • Exceptional net margin (25.8%), high even for its sector: the business is clearly profitable.

Teradyne, Inc risks and weaknesses

  • Shrinking margins: net margin has fallen from 25% to 17% in recent years.

Teradyne, Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20203,121784684-914
20213,7031,015966-1,122
20223,155716415-855
20232,676449426-758
20242,820542474-553
20253,190554450-94

Between 2020 and 2025, revenue went from $3,121M to $3,190M (+2%) and net income went from $784M to $554M (-29%). Meanwhile, its margins have narrowed (from 25% to 17%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 28, 2026, versus the half-year ended June 29, 2025 (SEC filings):

  • Revenue+95.3%
  • Net income+336.3%

What changed with the June 28, 2026 results

Compared with the previous close (March 29, 2026), this is what moved in its accounts:

  • Quality score7480
  • Net margin22.6%25.8%
  • ROE27.2%33.5%
  • FCF margin14.6%17.9%
  • Revenue growth3.8%6.7%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.48

per share, yearly

13.8% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Teradyne, Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Teradyne, Inc a good company to invest in?

In terms of business quality, Teradyne, Inc scores 80 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Teradyne, Inc a profitable company?

Very. Teradyne, Inc shows a net margin of 25.8% and an ROE of 33.5%, typical of a highly profitable business.

Does Teradyne, Inc have a lot of debt?

No. Teradyne, Inc has a net cash position: more cash than debt.

Is Teradyne, Inc growing?

Its revenue has grown 6.7% annualized in recent years and its earnings per share 10.2%.

Does Teradyne, Inc generate cash?

Yes. It converts about 17.9% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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