# Teradyne, Inc. Common Stock (TER) — Stock CV

Teradyne, Inc. is a $63.0B technology company. Revenue grew 57.9% over the last year, it keeps 26¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 54.7× earnings — in the most expensive third of its own history.

> Teradyne provides testing equipment, including automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronics systems, and wireless testing for devices.

## Identity

- **Ticker**: TER
- **Sector**: Technology
- **Industry**: Instruments For Meas & Testing Of Electricity & Elec Signals
- **Headquarters**: NORTH READING, MA
- **Employees**: 6 600
- **Website**: https://www.teradyne.com
- **Market cap**: $63.0B
- **Last price**: $402.68
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $4.46B
- **Net income**: $1.15B
- **Free cash flow**: $800M
- **Net cash**: $93.8M
- **P/E**: 54.7
- **Revenue growth (YoY)**: 57.9%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 10 |
| Growth | 25 |
| Profitability | 95 |
| Health | 75 |
| Quality | 67 |
| Moat | 80 |

## Qualifications (beginner checklist) — 8 of 11 passed

- [x] Revenue growing — +57.9% YoY
- [x] Profitable — $1.15B TTM
- [ ] Profit growing — -6.3% YoY
- [x] Generates cash — $800M TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $63.0B market cap
- [x] Not printing shares — -12.7% shares over ~5y
- [x] Proven track record — 9/10 profitable years
- [ ] Financially stable — health score 50/100
- [x] Pays a dividend — yield 0.12%
- [ ] Valuation not extreme — P/E 54.7

## Experience (career milestones)

- **FY2021** — Best year on record: $1.01B net income
- **FY2017** — Turned profitable: $258M net income after a loss year
- **FY2016** — Revenue already above $1B: $1.75B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2015** — Teradyne acquired Danish company Universal Robots in 2015
- **2011** — It acquired LitePoint Corporation, a provider of test instruments for use with Wireless products, such as…
- **2000** — Teradyne Connection Systems acquired Herco Technologies and Synthane-Taylor
- **1987** — The company introduced the first analog VLSI test system, the A500
- **1961** — D'Arbeloff and DeWolf sold their first product, a logic-controlled go/no-go diode tester, to Raytheon

## Strengths

- High gross margin (59.2%)
- Strongly profitable — 25.8% net margin
- Revenue growing 57.9% year over year
- Strong cash conversion — FCF is 17.9% of revenue
- Net cash position after subtracting debt from cash

## Watch-outs

- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $3.70B | $1.01B | $966M |
| FY2022 | $3.16B | $716M | $415M |
| FY2023 | $2.68B | $449M | $426M |
| FY2024 | $2.82B | $542M | $474M |
| FY2025 | $3.19B | $554M | $450M |

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Source: https://stockcv.com/TER — derived from company filings; may be delayed or incomplete. Information, not investment advice.