Analysis for TER

$343.21 -16.23 (-4.52%)

📈 Growth — 28/30
💰 Profitability — 19/20
🏦 Financial Health — 18/20
💵 Valuation — 12/20
⚠️ Risk — 7/10

Overall Score: 80/100

Summary:

📈 Growth & Financial Trajectory

Over the eight-quarter span, TERADYNE's top line grows from about $737.3M to about $1.329B, an approximate 80% rise. Net income climbs from about $145.6M to $374.9M, with volatility in early 2025 followed by a sharp upturn in early 2026. The end-to-start revenue and earnings growth reflects improving operating leverage despite mid-period setbacks (2025Q3–Q4). The late 2025 to mid-2026 cadence shows a durable uptrend in both revenues and profits.

💰 Margins & Cash Flow

Gross margin runs near 60%, with a 2025Q4 dip to about 48.5% and rebound above 59% in 2026.
Operating margin generally mid-20s, rising to ~37% in 2026Q1 and low-30s in 2026Q2, signaling strong leverage.
Net cash flow from operating activities is solid in most quarters (e.g., $469.1M in 2026Q1; $107.1M in 2026Q2), with more volatility tied to working capital shifts.

🛡️ Balance Sheet & Liquidity

Current assets ($2.37B) comfortably cover current liabilities ($1.11B), yielding a healthy current ratio (2.1x). Equity ($3.92B at 2026Q2) outweighs liabilities, and total assets remain robust, supporting resilience even with modest noncurrent liabilities.

⚠️ Key Drivers & Risks

Drivers: AI/Data Center demand; semiconductor equipment cycles.
Risks: Earnings visibility and margins can be cyclical; valuation sensitivity to exposure to capital equipment cycles.