We assign a fundamental rating of 5 out of 10 to TDY. TDY was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. While TDY has a great profitability rating, there are some minor concerns on its financial health. TDY has a valuation in line with the averages, but on the other hand it scores bad on growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

TDY had positive earnings in the past year.
TDY had a positive operating cash flow in the past year.
TDY had positive earnings in 4 of the past 5 years.
TDY had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

TDY has a better Return On Assets (5.32%) than 72.36% of its industry peers.
The Return On Equity of TDY (7.74%) is better than 65.85% of its industry peers.
The Return On Invested Capital of TDY (7.36%) is better than 73.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TDY is in line with the industry average of 8.87%.
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 Profit Margin of 13.62%. This is amongst the best in the industry. TDY outperforms 90.24% of its industry peers.
In the last couple of years the Profit Margin of TDY has grown nicely.
With an excellent Operating Margin value of 18.48%, TDY belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Operating Margin of TDY has grown nicely.
Looking at the Gross Margin, with a value of 42.73%, TDY is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
TDY's Gross Margin has improved in the last couple of years.

		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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TDY is destroying value.
TDY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 4.94 indicates that TDY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.94, TDY is doing good in the industry, outperforming 71.54% 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.
The Debt to FCF ratio of TDY (2.44) is better than 72.36% 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	4.94

ROIC/WACC0.89

WACC8.26%

2.3 Liquidity

A Current Ratio of 1.79 indicates that TDY should not have too much problems paying its short term obligations.
TDY has a worse Current ratio (1.79) than 65.85% 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 has a Quick ratio of 1.20. This is in the lower half of the industry: TDY underperforms 69.11% 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.
TDY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.

EPS Next Y8.36%

EPS Next 2Y7.85%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year5.22%

Revenue Next 2Y5.13%

Revenue Next 3Y5.1%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

TDY is valuated quite expensively with a Price/Earnings ratio of 27.73.
Based on the Price/Earnings ratio, TDY is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
TDY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.59 indicates a quite expensive valuation of TDY.
TDY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TDY is cheaper than 63.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. TDY is around the same levels.

		Industry Rank	Sector Rank
PE	27.73
Fwd PE	25.59

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TDY is valued a bit cheaper than the industry average as 61.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TDY is valued a bit cheaper than the industry average as 71.54% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	27.62
EV/EBITDA	21.32

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.