Teradyne Inc (TER, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $131.13 and a daily gain of 2.29%, despite a three-month decline of -11.11%, Teradyne Inc stands out in the market. A detailed analysis, supported by the GF Score, indicates that Teradyne Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Teradyne Inc boasts a GF Score of 92, signaling strong future performance potential.
- Financial strength rank: 10/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 10/10
Understanding Teradyne Inc's Business
Teradyne Inc, with a market cap of $21.40 billion and annual sales of $2.70 billion, operates in the dynamic field of testing equipment. The company provides automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronic systems, as well as wireless testing for devices. Since entering the industrial automation market in 2015, Teradyne Inc has expanded its offerings to include collaborative and autonomous robots for factory applications. The company serves a diverse range of end markets and geographies, with significant exposure to semiconductor testing.
Financial Strength Breakdown
Teradyne Inc's financial robustness is evident in its Financial Strength rating. The company's Interest Coverage ratio stands at an impressive 130.68, highlighting its ability to comfortably meet interest obligations. Furthermore, with an Altman Z-Score of 15.91, Teradyne Inc demonstrates strong protection against financial distress. The company's strategic management of debt is reflected in its favorable Debt-to-Revenue ratio of 0.03.
Profitability and Growth Metrics
Teradyne Inc's Profitability Rank is impressive, indicating superior profit generation capabilities compared to its peers. Additionally, the company's Predictability Rank of 3.5 stars highlights consistent operational performance, enhancing investor confidence. Teradyne Inc's commitment to growth is underscored by its high Growth Rank.
Conclusion
Considering Teradyne Inc's strong financial strength, profitability, and 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 using 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.
