Teradyne Inc (TER, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $131.59 and a notable daily gain of 3.52%, coupled with a three-month change of 28.51%, Teradyne Inc stands out as a robust investment opportunity. The GF Score further underscores its potential for significant growth, positioning it favorably for future success.
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: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. Teradyne Inc boasts a GF Score of 92, signaling strong future performance prospects.
- Financial strength rank: 10/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 8/10
Understanding Teradyne Inc's Business
Teradyne Inc, with a market cap of $20.54 billion and annual sales of $2.66 billion, operates at a healthy operating margin of 19.17%. The company is a leading provider of automated test equipment for semiconductors, system testing for hard disk drives, circuit boards, and electronic systems, as well as wireless testing for devices. Since venturing into industrial automation in 2015, Teradyne Inc has expanded its offerings to include collaborative and autonomous robots for factory applications, serving a diverse range of markets and geographies.
Financial Strength Breakdown
Teradyne Inc's financial robustness is reflected in its impressive Interest Coverage ratio of 146.41, significantly surpassing the benchmark set by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 16.06 indicates a strong buffer against financial distress, and a minimal Debt-to-Revenue ratio of 0.03 showcases prudent debt management.
Profitability and Growth Metrics
The company's high Profitability Rank and Predictability Rank of 3.5 stars reflect its ability to consistently generate profits and maintain operational efficiency. Teradyne Inc's commitment to growth is evident from its perfect score in the Growth Rank, indicating a strategic focus on expanding its market reach and enhancing its product offerings.
Conclusion
Considering Teradyne Inc's exceptional financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for robust investment opportunities may find Teradyne Inc an attractive option. For more insights into companies with strong GF Scores, visit our 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.
