$106.49
arrow_drop_up0.25%Is TER a Buy or Sell based on AI Analysis?
Fundamental Analysis
Based on the fundamental analysis of Teradyne Inc, several key indicators stand out. Firstly, the company's price-to-earnings (P/E) ratio of 38.77 suggests that investors are willing to pay $38.77 for every dollar of earnings generated by the company. This may indicate that the stock is currently overvalued compared to its earnings potential. Additionally, Teradyne's return on equity (ROE) of 18.03% reflects the company's ability to generate profit from shareholder equity. A higher ROE typically indicates efficient management and strong financial performance. Another important indicator is Teradyne's debt-to-equity ratio of 0.03, suggesting that the company has minimal debt relative to its equity. This indicates a strong financial position and lower financial risk. Furthermore, the company's dividend yield of 0.45% may not be particularly attractive for income investors, but it does offer a small return on investment. Lastly, Teradyne's net profit margin of 16.77% reflects the percentage of revenue that converts into profit after all expenses are accounted for. A higher net profit margin signifies efficient cost management and strong operational performance. Overall, these key fundamental indicators provide valuable insights into Teradyne's financial health and performance in the market.
Positive Development
The company is involved in the robotics sector which is currently experiencing a notable growth. The company's stock price has increased by 3.9% since the last earnings report, indicating a strong positive sentiment among investors. The company's gross margin, operating margin, and net margin are all above 0.1746, indicating strong profitability. The company's total debt to equity ratio is 0, indicating a low level of debt compared to equity.
Negative Development
The company's price-to-earnings ratio is 36.9702, which is considered high and may indicate overvaluation. The company's payout ratio is 0.1513, indicating that a significant portion of its profits are being used to pay dividends, which could potentially limit future growth. The company's inventory turnover is 3.5892, indicating a high level of inventory, which could lead to cash flow issues if not managed properly. The company's quick ratio is 1.9745, which is slightly below the industry average, indicating a potential liquidity issue.
Technical Analysis
Teradyne Inc (TER) has a neutral technical rating, indicating a balanced market sentiment. The stock price has shown a slight decrease of -0.05% compared to the previous close, with a delta price of -$0.05. The seven-day price change percent is 5.18%, reflecting a positive trend in the short term. The stock has a beta of 1.55, suggesting a higher volatility compared to the market average. The company's technical indicators for the month include one buy indicator (ATR), six hold indicators (RSI, MACD, CCI, ADX, WILLR, and ROC), and one sell indicator (STOCHRSI). This mix of signals suggests a cautious approach to trading Teradyne stock in the current market conditions. In terms of key financial ratios, Teradyne Inc has a price to sales ratio of 6.06, price to book ratio of 6.42, and price to cashflow ratio of 27.68. The company's free cashflow margin is 15.9% and return on equity is 18.03%, indicating efficient use of assets and strong profitability. The stock sector is Technology, and it has shown a significant 1-year change of 28.55%. The company's market cap is $16.2B, with shares outstanding at 153.08M. With a cumulative multiple of 16 and a history of dividends, Teradyne is considered a stable investment option. Overall, the technical analysis of Teradyne Inc suggests a cautious yet potentially rewarding opportunity for investors in the technology sector.
Conclusion and recommendation
Based on the data provided for Teradyne Inc, it is clear that the company is performing well in the stock market with a neutral technical rating and a positive trend in price change percentages over various time frames. With a market capitalization of $16.2 billion and strong financial metrics such as a PE ratio of 38.77 and a return on equity of 18.03%, Teradyne Inc appears to be a solid investment opportunity. Additionally, the company pays dividends, has a strong balance sheet with a current ratio of 3.28, and a history of consistent growth in revenue and net income. In conclusion, Teradyne Inc seems to be a promising investment option in the technology sector. The company's strong financial performance, consistent dividend payouts, and positive market outlook make it a favorable choice for investors looking for stable returns. However, it is important for investors to conduct further research and analysis before making any investment decisions, as market conditions can change rapidly. Overall, Teradyne Inc's solid financial standing and positive market indicators suggest that it could be a good addition to a diversified portfolio.