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Is NASDAQ:TER suited for quality investing?

By Mill Chart

Last update: Sep 1, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TERADYNE INC (NASDAQ:TER) is suited for quality investing. Investors should of couse do their own research, but we spotted TERADYNE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of TERADYNE INC

  • TERADYNE INC has demonstrated significant revenue growth over the past 5 years, with a 8.11% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a robust ROIC excluding cash and goodwill at 35.32%, TERADYNE INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a Debt/Free Cash Flow Ratio of 0.07, TERADYNE INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • TERADYNE INC demonstrates consistent Profit Quality over the past 5 years, with a strong 83.13%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • TERADYNE INC has experienced impressive EBIT growth over the past 5 years, with 9.69% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • The EBIT 5-year growth of TERADYNE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

A complete fundamental analysis of NASDAQ:TER

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

TER gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. TER scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TER has a correct valuation and a medium growth rate. These ratings could make TER a good candidate for quality investing.

Check the latest full fundamental report of TER for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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