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Teradyne, Inc. (TER) 10-Year Financial Performance & Capital Metrics

TER • • Industrial / General
TechnologySemiconductorsSemiconductor Manufacturing EquipmentAssembly & Test Equipment
AboutTeradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The company operates through Semiconductor Test, System Test, Industrial Automation, and Wireless Test segments. The Semiconductor Test segment offers products and services for wafer level and device package testing in automotive, industrial, communications, consumer, smartphones, cloud computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems. The Industrial Automation segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and light industrial customers. The Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices and modules, smartphones, tablets, notebooks, laptops, peripherals, and Internet-of-Things devices under the LitePoint brand name. This segment also offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE, and 5G technologies; IQcell, a multi-device cellular signaling test solution; IQgig test solution; and turnkey test software for wireless chipsets. Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.Show more
  • Revenue $2.82B +5.4%
  • EBITDA $714M +16.6%
  • Net Income $542M +20.9%
  • EPS (Diluted) 3.32 +21.6%
  • Gross Margin 58.48% +1.8%
  • EBITDA Margin 25.3% +10.7%
  • Operating Margin 21.06% +12.5%
  • Net Margin 19.23% +14.7%
  • ROE 20.29% +12.5%
  • ROIC 21.24% +1.2%
  • Debt/Equity 0.03 -16.9%
  • Interest Coverage 165.54 +25.7%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Company is almost debt free
  • ✓Excellent 3Y average ROE of 22.3%
  • ✓Strong Piotroski F-Score: 7/9
  • ✓FCF machine: 16.8% free cash flow margin
  • ✓Momentum leader: RS Rating 94 (top 6%)
  • ✓High quality earnings: Operating CF exceeds net income

✗Weaknesses

  • ✗Expensive at 13.2x book value

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y5.52%
5Y4.21%
3Y-8.68%
TTM4.46%

Profit (Net Income) CAGR

10Y20.9%
5Y3.02%
3Y-18.84%
TTM-13.66%

EPS CAGR

10Y24.54%
5Y5.01%
3Y-15.64%
TTM-12.82%

ROCE

10Y Avg21.61%
5Y Avg28.59%
3Y Avg22.31%
Latest20.09%

Peer Comparison

Assembly & Test Equipment
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
KLICKulicke and Soffa Industries, Inc.3.1B59.179999-7.38%0.03%0.03%3.11%0.05
FORMFormFactor, Inc.5.84B75.2884.5815.16%5.23%3.93%1.36%0.04
TERTeradyne, Inc.35.66B227.7068.585.36%15.49%16.31%1.33%0.03
INTTinTEST Corporation108.86M8.7236.335.99%-1.93%-2.22%2.29%0.26
COHUCohu, Inc.1.36B29.14-19.56-36.86%-17.22%-8.8%0.02
AEHRAehr Test Systems812.54M26.53-204.08-10.95%-16.63%-6.77%0.09
TRTTrio-Tech International56.21M6.46-672.92-13.8%0.64%0.8%0.05

Profit & Loss

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+1.64B1.75B2.14B2.1B2.29B3.12B3.7B3.16B2.68B2.82B
Revenue Growth %-0.01%0.07%0.22%-0.02%0.09%0.36%0.19%-0.15%-0.15%0.05%
Cost of Goods Sold+723.93M794.64M915.15M880.41M955.14M1.34B1.5B1.29B1.14B1.17B
COGS % of Revenue0.44%0.45%0.43%0.42%0.42%0.43%0.4%0.41%0.43%0.42%
Gross Profit+915.64M958.61M1.22B1.22B1.34B1.79B2.21B1.87B1.54B1.65B
Gross Margin %0.56%0.55%0.57%0.58%0.58%0.57%0.6%0.59%0.57%0.58%
Gross Profit Growth %0.04%0.05%0.27%-0%0.1%0.33%0.24%-0.15%-0.18%0.07%
Operating Expenses+667.59M661.35M686.75M731.37M800.05M857.33M1.01B1.04B1.04B1.06B
OpEx % of Revenue0.41%0.38%0.32%0.35%0.35%0.27%0.27%0.33%0.39%0.37%
Selling, General & Admin306.31M316.54M348.91M390.67M437.08M464.77M547.56M558.1M577.32M617.05M
SG&A % of Revenue0.19%0.18%0.16%0.19%0.19%0.15%0.15%0.18%0.22%0.22%
Research & Development292.25M292.16M307.31M301.5M322.82M374.96M427.61M440.59M418.09M460.88M
R&D % of Revenue0.18%0.17%0.14%0.14%0.14%0.12%0.12%0.14%0.16%0.16%
Other Operating Expenses69.03M52.65M30.53M39.19M40.15M17.6M30.77M36.52M40.28M-22.78M
Operating Income+242.97M-62.97M525.34M473.8M553.65M928.41M1.2B831.94M501.07M593.79M
Operating Margin %0.15%-0.04%0.25%0.23%0.24%0.3%0.32%0.26%0.19%0.21%
Operating Income Growth %1.52%-1.26%9.34%-0.1%0.17%0.68%0.29%-0.31%-0.4%0.19%
EBITDA+383.74M57.04M633.42M587.02M674.31M1.06B1.33B942.61M611.95M713.53M
EBITDA Margin %0.23%0.03%0.3%0.28%0.29%0.34%0.36%0.3%0.23%0.25%
EBITDA Growth %0.54%-0.85%10.1%-0.07%0.15%0.56%0.26%-0.29%-0.35%0.17%
D&A (Non-Cash Add-back)140.77M120.01M108.08M113.22M120.66M126.74M125.48M110.67M110.89M119.74M
EBIT255M-51.42M546.08M489.58M548M925.2M1.18B844.1M529.38M612.67M
Net Interest Income+5.34M5.66M-3.86M-1.32M-5.23M-18.2M-15.19M2.66M23.54M21.18M
Interest Income7.21M9.3M17.8M20.46M16.99M5.98M2.63M6.38M27.35M24.77M
Interest Expense1.88M3.64M21.66M21.78M22.22M24.18M17.82M3.72M3.81M3.59M
Other Income/Expense10.15M7.91M-931K-6M-27.88M-27.39M-39.77M8.45M24.5M8.09M
Pretax Income+253.12M-55.06M524.41M467.8M525.77M901.01M1.16B840.38M525.57M601.88M
Pretax Margin %0.15%-0.03%0.25%0.22%0.23%0.29%0.31%0.27%0.2%0.21%
Income Tax+46.65M-11.64M266.72M16.02M58.3M116.87M146.37M124.88M76.82M59.5M
Effective Tax Rate %0.82%0.79%0.49%0.97%0.89%0.87%0.87%0.85%0.85%0.9%
Net Income+206.48M-43.42M257.69M451.78M467.47M784.15M1.01B715.5M448.75M542.37M
Net Margin %0.13%-0.02%0.12%0.22%0.2%0.25%0.27%0.23%0.17%0.19%
Net Income Growth %1.54%-1.21%6.93%0.75%0.03%0.68%0.29%-0.29%-0.37%0.21%
Net Income (Continuing)206.48M-43.42M257.69M451.78M467.47M784.15M1.01B715.5M448.75M542.37M
Discontinued Operations0000000000
Minority Interest0000000000
EPS (Diluted)+0.97-0.211.282.352.604.285.534.222.733.32
EPS Growth %1.62%-1.22%7.1%0.84%0.11%0.65%0.29%-0.24%-0.35%0.22%
EPS (Basic)0.98-0.211.302.412.744.726.154.522.913.41
Diluted Shares Outstanding213.32M202.58M201.64M192.6M179.46M183.04M183.63M169.73M164.3M163.31M
Basic Shares Outstanding211.54M202.58M198.07M187.67M170.43M166.12M164.96M158.43M154.31M159.08M
Dividend Payout Ratio0.25%-0.22%0.15%0.13%0.08%0.07%0.1%0.15%0.14%

Balance Sheet

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+1.26B1.62B2.27B1.73B1.66B2.42B2.58B2.26B2.16B1.82B
Cash & Short-Term Investments742.4M1.18B1.78B1.12B911.23M1.44B1.37B894.38M819.73M599.67M
Cash Only264.7M307.88M429.84M926.75M773.92M914.12M1.12B854.77M757.57M553.35M
Short-Term Investments477.7M871.02M1.35B190.1M137.3M522.28M244.23M39.61M62.15M46.31M
Accounts Receivable211.29M192.44M272.78M291.27M362.37M497.51M550.75M491.14M422.12M471.43M
Days Sales Outstanding47.0440.0646.650.6157.6358.1754.2956.8257.5761.02
Inventory153.59M212.97M190.03M285.18M340.08M434.48M607.81M816.12M812.23M664.37M
Days Inventory Outstanding77.4497.8375.79118.23129.96118.72148.27231.3260.16207.09
Other Current Assets127.45M8.04M4.03M8.31M11.9M9.25M9.45M14.4M61.24M17.73M
Total Non-Current Assets+1.29B1.14B839.26M974.12M1.13B1.24B1.23B1.24B1.32B1.89B
Property, Plant & Equipment273.41M253.82M268.45M279.82M377.75M449.37M456.05M492.42M518.91M578.36M
Fixed Asset Turnover6.00x6.91x7.96x7.51x6.08x6.95x8.12x6.41x5.16x4.88x
Goodwill488.41M223.34M252.01M381.85M416.43M453.86M426.02M403.19M415.65M395.37M
Intangible Assets239.83M100.4M79.09M125.48M125.48M100.94M75.64M53.48M35.4M15.93M
Long-Term Investments265.93M433.84M125.93M87.73M104.49M117.98M133.86M110.78M117.43M618.62M
Other Non-Current Assets13.72M19.88M29.77M28.39M28.79M26.85M39.21M40.69M61.62M61.61M
Total Assets+2.55B2.76B3.11B2.71B2.79B3.65B3.81B3.5B3.49B3.71B
Asset Turnover0.64x0.63x0.69x0.78x0.82x0.85x0.97x0.90x0.77x0.76x
Asset Growth %0%0.08%0.13%-0.13%0.03%0.31%0.04%-0.08%-0%0.06%
Total Current Liabilities+372.86M372.7M454.34M476.29M539.03M700.87M805.12M746.26M659.95M624.58M
Accounts Payable92.36M95.36M86.39M100.69M126.62M133.66M153.13M139.72M180.13M134.79M
Days Payables Outstanding46.5743.834.4641.7448.3936.5237.3639.657.742.02
Short-Term Debt000019.48M53.92M39.16M68.71M17.52M18.7M
Deferred Revenue (Current)1000K01000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities129.49M136.91M83.58M113.14M79.98M77.58M124.19M112.27M122.09M90.78M
Current Ratio3.38x4.36x5.00x3.64x3.08x3.45x3.20x3.03x3.28x2.91x
Quick Ratio2.97x3.79x4.58x3.04x2.45x2.83x2.44x1.93x2.05x1.84x
Cash Conversion Cycle77.9194.0987.93127.09139.21140.37165.21248.52260.03226.1
Total Non-Current Liabilities+210.03M561.14M701.56M707.96M767.83M740.67M440.35M303.69M300.98M264.84M
Long-Term Debt0352.67M365.99M379.98M394.69M376.77M89.24M000
Capital Lease Obligations000045.85M42.07M56.18M64.18M65.09M57.92M
Deferred Tax Liabilities26.66M12.14M6.72M20.66M14.07M10.82M6.33M3.27M183K1.04M
Other Non-Current Liabilities157.62M196.32M298.73M274.57M267.25M252.65M233.68M191.12M198.42M165.38M
Total Liabilities582.89M933.83M1.16B1.18B1.31B1.44B1.25B1.05B960.93M889.42M
Total Debt+0352.67M365.99M379.98M460.01M472.76M184.58M132.88M82.61M76.62M
Net Debt-264.7M44.78M-63.86M-546.77M-313.91M-441.36M-937.62M-721.89M-674.96M-476.73M
Debt / Equity-0.19x0.19x0.25x0.31x0.21x0.07x0.05x0.03x0.03x
Debt / EBITDA-6.18x0.58x0.65x0.68x0.45x0.14x0.14x0.14x0.11x
Net Debt / EBITDA-0.69x0.79x-0.10x-0.93x-0.47x-0.42x-0.71x-0.77x-1.10x-0.67x
Interest Coverage129.51x-17.31x24.25x21.75x24.91x38.39x67.38x223.70x131.65x165.54x
Total Equity+1.97B1.83B1.95B1.52B1.48B2.21B2.56B2.45B2.53B2.82B
Equity Growth %-0.05%-0.07%0.07%-0.22%-0.03%0.49%0.16%-0.04%0.03%0.12%
Book Value per Share9.229.039.697.908.2512.0813.9614.4415.3717.26
Total Shareholders' Equity1.97B1.83B1.95B1.52B1.48B2.21B2.56B2.45B2.53B2.82B
Common Stock25.45M24.9M24.44M21.94M20.8M24.55M21.79M19.47M19.09M20.21M
Retained Earnings467.83M230.29M272.01M-158.19M-241.92M387.41M736.57M725.73M706.51M970.76M
Treasury Stock0000000000
Accumulated OCI-8.14M-20.21M18.78M-13.04M-18.85M33.52M-5.95M-49.87M-26.98M-81.22M
Minority Interest0000000000

Cash Flow

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+410.59M445.8M626.5M476.88M578.75M868.93M1.1B577.92M585.23M672.18M
Operating CF Margin %0.25%0.25%0.29%0.23%0.25%0.28%0.3%0.18%0.22%0.24%
Operating CF Growth %-0.17%0.09%0.41%-0.24%0.21%0.5%0.26%-0.47%0.01%0.15%
Net Income206.48M-43.42M257.69M451.78M467.47M784.15M1.01B715.5M448.75M542.37M
Depreciation & Amortization140.77M120.01M108.08M113.22M120.66M110.92M112.53M110.1M111.12M119.74M
Stock-Based Compensation0000000000
Deferred Taxes-7.12M-62.94M37.1M28.34M-9.46M-15.69M-17.3M-38.69M-37.64M-46.36M
Other Non-Cash Items61.16M391.39M40.53M47.07M51.79M58.93M87.32M63.6M72.64M32.55M
Working Capital Changes9.3M40.76M183.09M-163.53M-51.71M-69.38M-98.77M-272.58M-9.64M23.88M
Change in Receivables-57.27M18.32M-80.58M-17.94M-70.44M-129.45M-57.78M50.63M70.98M-52.66M
Change in Inventory15.56M34.26M44.96M-29.5M-27.41M-8.44M6.5M-80.81M5.33M8.71M
Change in Payables48.21M-1.71M43.57M13.69M49.28M73.17M129.5M-60.51M46.78M-54.39M
Cash from Investing+-113.72M-640.46M-262.8M923.01M-156.66M-569.79M120.36M43.75M-179.65M-622.34M
Capital Expenditures-89.88M-85.27M-105.38M-114.38M-134.64M-184.98M-132.47M-163.25M-159.64M-198.09M
CapEx % of Revenue0.05%0.05%0.05%0.05%0.06%0.06%0.04%0.05%0.06%0.07%
Acquisitions----------
Investments----------
Other Investing1.1M5.05M5.06M1.13M2.91M546K00-4.54M873K
Cash from Financing+-326.42M237.84M-245.19M-903.42M-574.35M-158.29M-1.01B-892.99M-501.91M-251.77M
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-50.71M-48.62M-55.45M-67.32M-61.3M-66.48M-65.98M-69.71M-67.88M-76.42M
Share Repurchases----------
Other Financing4.71M-5.5M-1.05M-13.57M-27.61M-8.85M0000
Net Change in Cash----------
Free Cash Flow+320.71M360.53M521.12M362.5M444.11M683.96M965.89M414.67M425.59M474.08M
FCF Margin %0.2%0.21%0.24%0.17%0.19%0.22%0.26%0.13%0.16%0.17%
FCF Growth %-0.01%0.12%0.45%-0.3%0.23%0.54%0.41%-0.57%0.03%0.11%
FCF per Share1.501.782.581.882.473.745.262.442.592.90
FCF Conversion (FCF/Net Income)1.99x-10.27x2.43x1.06x1.24x1.11x1.08x0.81x1.30x1.24x
Interest Paid301K446K6.45M6.21M6M6.43M4.24M1.5M296K767K
Taxes Paid35.22M40.42M53.77M72.81M81.41M106.58M172.13M193.25M140.24M121.43M

Key Ratios

Metric2015201620172018201920202021202220232024
Return on Equity (ROE)10.21%-2.29%13.63%25.99%31.14%42.49%42.5%28.53%18.03%20.29%
Return on Invested Capital (ROIC)10.46%-2.64%20.94%24.8%38.77%47.44%53.04%37.19%20.99%21.24%
Gross Margin55.85%54.68%57.17%58.09%58.38%57.21%59.59%59.18%57.42%58.48%
Net Margin12.59%-2.48%12.06%21.51%20.37%25.12%27.4%22.68%16.77%19.23%
Debt / Equity-0.19x0.19x0.25x0.31x0.21x0.07x0.05x0.03x0.03x
Interest Coverage129.51x-17.31x24.25x21.75x24.91x38.39x67.38x223.70x131.65x165.54x
FCF Conversion1.99x-10.27x2.43x1.06x1.24x1.11x1.08x0.81x1.30x1.24x
Revenue Growth-0.5%6.93%21.87%-1.68%9.24%36.01%18.63%-14.79%-15.17%5.36%

Revenue by Segment

2015201620172018201920202021202220232024
Product---1.73B1.89B2.69B3.2B2.59B2.1B2.29B
Product Growth----9.14%42.55%18.79%-18.93%-19.11%9.48%
Service---371.18M407.29M430.56M506.31M563.47M580.01M524.95M
Service Growth----9.73%5.71%17.59%11.29%2.94%-9.49%
Industrial Automation43.46M99.03M170.06M-------
Industrial Automation Growth-127.87%71.72%-------
Semiconductor Test1.21B---------
Semiconductor Test Growth----------
Systems Test Group219.91M---------
Systems Test Group Growth----------
Wireless Test187.07M---------
Wireless Test Growth----------

Revenue by Geography

2015201620172018201920202021202220232024
KOREA, REPUBLIC OF120.22M147.88M206.82M163.22M239.5M391.57M502.17M544.82M394.69M695.67M
KOREA, REPUBLIC OF Growth-23.01%39.85%-21.08%46.73%63.49%28.24%8.49%-27.56%76.26%
TAIWAN, PROVINCE OF CHINA436.39M653.08M687.03M516.32M485.68M1.18B1.12B626.42M384.84M602M
TAIWAN, PROVINCE OF CHINA Growth-49.65%5.20%-24.85%-5.93%142.56%-5.11%-43.96%-38.57%56.43%
CHINA264.9M174.88M260.45M348.94M514.33M465.72M631.96M491.8M314.9M375.19M
CHINA Growth--33.98%48.93%33.98%47.40%-9.45%35.70%-22.18%-35.97%19.14%
UNITED STATES217.39M221.95M252.52M282.87M333.06M321.67M392.63M469.95M433.66M374.33M
UNITED STATES Growth-2.10%13.77%12.02%17.74%-3.42%22.06%19.69%-7.72%-13.68%
EMEA111.9M117.67M163.72M223.21M219.01M205.59M259.95M268.38M273.78M251.28M
EMEA Growth-5.15%39.13%36.34%-1.88%-6.13%26.44%3.24%2.01%-8.22%
JAPAN128.23M135.98M169.09M158.28M175.32M143.98M166.23M162.92M281.74M159.83M
JAPAN Growth-6.04%24.35%-6.39%10.77%-17.88%15.45%-1.99%72.93%-43.27%
World23.42M27.37M36.43M39.36M43.68M74.63M68.06M87.59M105.28M106.19M
World Growth-16.88%33.09%8.04%10.98%70.85%-8.81%28.69%20.20%0.87%
SINGAPORE105.22M73.17M101.08M108.62M84.11M76.46M121.58M99.5M116.97M90.11M
SINGAPORE Growth--30.46%38.15%7.45%-22.56%-9.10%59.01%-18.16%17.55%-22.96%
MALAYSIA76.71M103.47M124.05M122.8M58.2M56.1M136.77M142.2M89.2M62.38M
MALAYSIA Growth-34.89%19.89%-1.01%-52.60%-3.62%143.82%3.97%-37.27%-30.07%
PHILIPPINES96.1M54.7M105.85M78M54.56M68.89M166.84M124.11M189.42M53.64M
PHILIPPINES Growth--43.08%93.49%-26.31%-30.05%26.26%142.19%-25.61%52.63%-71.68%
THAILAND59.1M43.1M29.57M59.18M87.5M138.79M138.81M137.36M91.82M49.27M
THAILAND Growth--27.08%-31.40%100.18%47.85%58.61%0.02%-1.05%-33.15%-46.34%

Frequently Asked Questions

Valuation & Price

Teradyne, Inc. (TER) has a price-to-earnings (P/E) ratio of 68.6x. This suggests investors expect higher future growth.

Growth & Financials

Teradyne, Inc. (TER) reported $2.86B in revenue for fiscal year 2024. This represents a 100% increase from $1.43B in 2011.

Teradyne, Inc. (TER) grew revenue by 5.4% over the past year. This is steady growth.

Yes, Teradyne, Inc. (TER) is profitable, generating $443.1M in net income for fiscal year 2024 (19.2% net margin).

Dividend & Returns

Yes, Teradyne, Inc. (TER) pays a dividend with a yield of 0.21%. This makes it attractive for income-focused investors.

Teradyne, Inc. (TER) has a return on equity (ROE) of 20.3%. This is excellent, indicating efficient use of shareholder capital.

Teradyne, Inc. (TER) generated $456.8M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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