Fundamental analysis · SEC EDGAR · TTM through 27/09/2026
TER · Nasdaq · Utilities
Fundamental quality
84
out of 100
Teradyne, Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 37.2%) with wide margins (net margin 27.5%) and a business that keeps growing (8.6% a year). On fundamental quality it scores 84 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +8.6%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
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.
EPS growth: 13.2% · Revenue growth: 8.6%
Net margin: 27.5% · ROE: 37.2% · ROIC: 43%
Net debt/EBITDA: -0.26x · FCF: 20.5%
Source: SEC EDGAR · TTM through 27/09/2026
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Percentile against the other 24 Utilities companies in our coverage: how far it beats them on each metric (100 = best in sector).
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
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 3,121 | 784 | 684 | -914 |
| 2021 | 3,703 | 1,015 | 966 | -1,122 |
| 2022 | 3,155 | 716 | 415 | -855 |
| 2023 | 2,676 | 449 | 426 | -758 |
| 2024 | 2,820 | 542 | 474 | -553 |
| 2025 | 3,190 | 554 | 450 | -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
Figures for the nine months ended September 27, 2026, versus the nine months ended September 28, 2025 (SEC filings):
Compared with the previous close (June 28, 2026), this is what moved in its accounts:
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.
$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 →Is Teradyne, Inc a good company to invest in?
In terms of business quality, Teradyne, Inc scores 84 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 27.5% and an ROE of 37.2%, 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 8.6% annualized in recent years and its earnings per share 13.2%.
Does Teradyne, Inc generate cash?
Yes. It converts about 20.5% 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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Who's behind the methodology and model · how the score is computed
Data: see Teradyne, Inc's filings on EDGAR
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