Teledyne Technologies Inc (TDY, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With a current share price of $422.08 and a modest daily gain of 0.12%, the company has shown a notable increase of 10.46% over the past three months. A detailed examination, anchored by the GF Score, positions Teledyne Technologies Inc as a prime candidate for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's financials. This system, which has been rigorously backtested from 2006 to 2021, suggests that stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Teledyne Technologies Inc boasts a GF Score of 93, signaling strong future performance potential across various metrics:
- Financial strength rank: 7/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Understanding Teledyne Technologies Inc's Business
Teledyne Technologies Inc, with a market cap of $20.02 billion and annual sales of $5.55 billion, operates primarily in industrial technology sectors. The company's diverse portfolio includes instrumentation, digital imaging, aerospace and defense electronics, and engineered systems. Notably, a significant portion of its revenue is derived from contracts with the U.S. government. The digital imaging segment, which is the largest revenue contributor, serves a wide array of industrial, government, and medical customers.
Financial Strength Breakdown
Teledyne Technologies Inc's financial robustness is evident in its Financial Strength rating. The company's Interest Coverage ratio stands at an impressive 16.46, highlighting its ability to comfortably meet interest obligations. Additionally, its strategic debt management is reflected in a Debt-to-Revenue ratio of 0.5, further underscoring its financial health.
Profitability and Growth Metrics
Teledyne Technologies Inc excels in profitability, with an Operating Margin that has consistently improved over the past five years, reaching 18.58% in 2023. The company's Gross Margin also reflects an upward trend, standing at 43.29% in 2023. These figures demonstrate Teledyne Technologies Inc's increasing efficiency in converting revenue into profit.
The company's growth is equally impressive, with a 3-Year Revenue Growth Rate of 13%, significantly outperforming the majority of its industry peers. This is complemented by strong EBITDA growth, further emphasizing the company's dynamic expansion capabilities.
Conclusion
Considering Teledyne Technologies Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
