Teradyne Intrinsic Value – Teradyne, Struggles to Maintain Impressive Numbers
December 23, 2023
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Teradyne ($NASDAQ:TER), Inc. has been struggling to maintain its impressive numbers in the market. Despite having a history of strong performance and having achieved record highs in recent years, it is virtually impossible for the company to keep up with the current environment. The reasons behind this are multifaceted, but could include increased competition, supply chain disruptions, and the changing dynamics of the world economy. TERADYNE is a technology manufacturer and supplier of automation solutions for a variety of industries.
It operates in various regions around the world and specializes in providing its customers with innovative products, services, and solutions. TERADYNE’s stock price has been volatile in recent years, but has still managed to remain generally positive and above its long-term averages. Despite these challenges, investors have found the stock to be an attractive choice due to its potential for long-term growth.
Share Price
Friday was a good day for TERADYNE, Inc., as its stock opened at $107.0 and closed at $107.6, up by 1.0% from the prior closing price of $106.6. This is promising for the company, which has had to use numerous strategies in order to maintain its impressive numbers. TERADYNE has had to focus on cost-cutting measures and strategic investments, both of which have allowed them to remain competitive in the market. Despite the fact that the company has had to struggle to keep up with their competitors, they have managed to maintain their impressive numbers thus far. Teradyne_Struggles_to_Maintain_Impressive_Numbers”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Teradyne. More…
| Total Revenues | Net Income | Net Margin |
| 1.56k | 355.79 | 22.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Teradyne. More…
| Operations | Investing | Financing |
| 519.85 | -150.92 | -444.96 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Teradyne. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.37k | 929.36 | 15.97 |
Key Ratios Snapshot
Some of the financial key ratios for Teradyne are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -19.8% | -22.9% | 27.1% |
| FCF Margin | ROE | ROA |
| 23.7% | 10.8% | 7.8% |
Analysis – Teradyne Intrinsic Value
At GoodWhale, we have conducted an in-depth analysis of TERADYNE’s fundamentals. Based on this analysis, we have calculated the fair value of TERADYNE’s shares at approximately $111.2 using our proprietary Valuation Line. Currently, the TERADYNE stock is traded at a price of $107.6, indicating that it is undervalued by 3.2%. This is an excellent opportunity for investors to purchase the stock at a fair price. Teradyne_Struggles_to_Maintain_Impressive_Numbers”>More…
Peers
The competition between Teradyne Inc and its competitors is fierce. Lam Research Corp, Taiwan Semiconductor Manufacturing Co Ltd, and Apple Inc are all major players in the market. Teradyne Inc has been able to stay ahead of the competition by innovating and developing new products.
– Lam Research Corp ($NASDAQ:LRCX)
Lam Research Corporation is an American company that manufactures semiconductor processing equipment used in the fabrication of integrated circuits. The company was founded in 1980 and is headquartered in Fremont, California. Lam Research has a market capitalization of $51.81 billion as of March 2021 and a return on equity of 54.63%. The company’s products are used in a variety of applications, including memory chips, microprocessors, and graphics processors.
– Taiwan Semiconductor Manufacturing Co Ltd ($TWSE:2330)
With a market cap of 9.75T as of 2022, Taiwan Semiconductor Manufacturing Co Ltd is one of the largest companies in the world. The company’s return on equity is 22.34%, meaning that it generates a significant amount of profit for shareholders. Taiwan Semiconductor Manufacturing Co Ltd is a leading provider of semiconductor manufacturing services and one of the largest manufacturers of semiconductors in the world. The company’s products are used in a wide range of electronic devices, including computers, mobile phones, and consumer electronics.
– Apple Inc ($NASDAQ:AAPL)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. The company’s products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iCloud, and iTunes. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple was incorporated as Apple Computer, Inc., in 1977. The word “Computer” was removed from the company’s name in 2007, as its traditional focus on personal computers shifted towards consumer electronics.
Summary
Investment in Teradyne, Inc. is a potentially lucrative opportunity. The company has strong financials, with reported gross and operating profits of over $3 billion and $1 billion respectively in the last year. Its products span across multiple industries including automotive, industrial, defense, and semiconductors. Analysts expect the company to continue its strong performance in the coming years.
