TDY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. TDY scores excellent on profitability, but there are some minor concerns on its financial health. TDY has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year TDY was profitable.
In the past year TDY had a positive cash flow from operations.
TDY had positive earnings in 4 of the past 5 years.
Of the past 5 years TDY 4 years had a positive operating cash flow.

1.2 Ratios

With a decent Return On Assets value of 5.32%, TDY is doing good in the industry, outperforming 72.58% of the companies in the same industry.
The Return On Equity of TDY (7.74%) is better than 66.13% of its industry peers.
TDY has a better Return On Invested Capital (7.36%) than 74.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TDY is in line with the industry average of 8.83%.
The 3 year average ROIC (7.12%) for TDY is below the current ROIC(7.36%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	5.32%
ROE	7.74%
ROIC	7.36%

ROA(3y)5.79%

ROA(5y)5.67%

ROE(3y)9.28%

ROE(5y)9.23%

ROIC(3y)7.12%

ROIC(5y)7.17%

1.3 Margins

TDY has a better Profit Margin (13.62%) than 90.32% of its industry peers.
In the last couple of years the Profit Margin of TDY has grown nicely.
Looking at the Operating Margin, with a value of 18.48%, TDY belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
In the last couple of years the Operating Margin of TDY has grown nicely.
TDY has a Gross Margin of 42.73%. This is in the better half of the industry: TDY outperforms 72.58% of its industry peers.
In the last couple of years the Gross Margin of TDY has grown nicely.

		Industry Rank	Sector Rank
OM	18.48%
PM (TTM)	13.62%
GM	42.73%

OM growth 3Y9.21%

OM growth 5Y3.4%

PM growth 3Y14.4%

PM growth 5Y2.59%

GM growth 3Y2.43%

GM growth 5Y1.79%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TDY is destroying value.
There is no outstanding debt for TDY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

TDY has an Altman-Z score of 5.01. This indicates that TDY is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.01, TDY is doing good in the industry, outperforming 70.97% of the companies in the same industry.
TDY has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as TDY would need 2.44 years to pay back of all of its debts.
TDY's Debt to FCF ratio of 2.44 is fine compared to the rest of the industry. TDY outperforms 72.58% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that TDY is not too dependend on debt financing.
The Debt to Equity ratio of TDY (0.20) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.2
Debt/FCF	2.44
Altman-Z	5.01

ROIC/WACC0.51

WACC14.57%

2.3 Liquidity

A Current Ratio of 1.79 indicates that TDY should not have too much problems paying its short term obligations.
The Current ratio of TDY (1.79) is worse than 65.32% of its industry peers.
TDY has a Quick Ratio of 1.20. This is a normal value and indicates that TDY is financially healthy and should not expect problems in meeting its short term obligations.
TDY's Quick ratio of 1.20 is on the low side compared to the rest of the industry. TDY is outperformed by 68.55% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.79
Quick Ratio	1.2

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.49% over the past year.
The Earnings Per Share has been growing by 15.72% on average over the past years. This is quite good.

EPS 1Y (TTM)11.49%

EPS 3Y6.6%

EPS 5Y15.72%

EPS Q2Q%14.13%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%7.32%

3.2 Future

Based on estimates for the next years, TDY will show a small growth in Earnings Per Share. The EPS will grow by 7.85% on average per year.
Based on estimates for the next years, TDY will show a small growth in Revenue. The Revenue will grow by 4.65% on average per year.

EPS Next Y8.36%

EPS Next 2Y7.85%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year4.74%

Revenue Next 2Y4.65%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.73, which means the current valuation is very expensive for TDY.
Based on the Price/Earnings ratio, TDY is valued a bit cheaper than 67.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, TDY is valued at the same level.
The Price/Forward Earnings ratio is 25.59, which means the current valuation is very expensive for TDY.
Based on the Price/Forward Earnings ratio, TDY is valued a bit cheaper than 62.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.26. TDY is around the same levels.

		Industry Rank	Sector Rank
PE	27.73
Fwd PE	25.59

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TDY indicates a somewhat cheap valuation: TDY is cheaper than 62.90% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDY indicates a somewhat cheap valuation: TDY is cheaper than 71.77% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	27.62
EV/EBITDA	21.68

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TDY does not grow enough to justify the current Price/Earnings ratio.
TDY has an outstanding profitability rating, which may justify a higher PE ratio.