A Holistic Look At Teradyne, Inc. (NASDAQ:TER)

Simply Wall St - finance.yahoo.com Posted 5 years ago
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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Teradyne, Inc. (NASDAQ:TER), it is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Teradyne here.

Outstanding track record with excellent balance sheet

TER delivered a bottom-line expansion of 75% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 30% return to shareholders, which is an optimistic signal for the future. TER’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that TER manages its cash and cost levels well, which is a crucial insight into the health of the company. TER’s has produced operating cash levels of 1.26x total debt over the past year, which implies that TER’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NasdaqGS:TER Income Statement, March 26th 2019
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Next Steps:

For Teradyne, I’ve compiled three relevant aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for TER’s future growth? Take a look at our free research report of analyst consensus for TER’s outlook.
  2. Valuation: What is TER worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TER is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TER? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.