Overall TDY gets a fundamental rating of 5 out of 10. We evaluated TDY against 123 industry peers in the Electronic Equipment, Instruments & Components industry. TDY has an excellent profitability rating, but there are concerns on its financial health. TDY is not valued too expensively and it also shows a decent growth rate.

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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.
In the past year TDY had a positive cash flow from operations.
In the past 5 years TDY has always been profitable.
Each year in the past 5 years TDY had a positive operating cash flow.

1.2 Ratios

TDY has a better Return On Assets (5.85%) than 76.42% of its industry peers.
Looking at the Return On Equity, with a value of 8.51%, TDY is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
TDY has a Return On Invested Capital of 7.25%. This is in the better half of the industry: TDY outperforms 73.98% 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 8.87%.
The 3 year average ROIC (6.98%) for TDY is below the current ROIC(7.25%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	5.85%
ROE	8.51%
ROIC	7.25%

ROA(3y)5.91%

ROA(5y)5.26%

ROE(3y)8.9%

ROE(5y)8.44%

ROIC(3y)6.98%

ROIC(5y)6.32%

1.3 Margins

TDY has a better Profit Margin (14.63%) than 92.68% of its industry peers.
TDY's Profit Margin has improved in the last couple of years.
The Operating Margin of TDY (18.80%) is better than 95.12% of its industry peers.
In the last couple of years the Operating Margin of TDY has grown nicely.
Looking at the Gross Margin, with a value of 42.76%, TDY is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
In the last couple of years the Gross Margin of TDY has grown nicely.

		Industry Rank	Sector Rank
OM	18.8%
PM (TTM)	14.63%
GM	42.76%

OM growth 3Y1.83%

OM growth 5Y3.86%

PM growth 3Y0.43%

PM growth 5Y2.36%

GM growth 3Y0.05%

GM growth 5Y2.25%

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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.
The number of shares outstanding for TDY has been increased compared to 1 year ago.
The number of shares outstanding for TDY has been increased compared to 5 years ago.
Compared to 1 year ago, TDY has an improved debt to assets ratio.

2.2 Solvency

The Debt to FCF ratio of TDY is 2.30, which is a good value as it means it would take TDY, 2.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TDY (2.30) is better than 73.17% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that TDY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, TDY is in line with its industry, outperforming 46.34% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.19
Debt/FCF	2.3
Altman-Z	N/A

ROIC/WACC0.86

WACC8.48%

2.3 Liquidity

A Current Ratio of 1.64 indicates that TDY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, TDY is doing worse than 69.92% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that TDY should not have too much problems paying its short term obligations.
TDY's Quick ratio of 1.08 is on the low side compared to the rest of the industry. TDY is outperformed by 74.80% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.64
Quick Ratio	1.08

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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.
TDY shows a small growth in Revenue. In the last year, the Revenue has grown by 7.86%.
TDY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.66% yearly.

EPS 1Y (TTM)11.49%

EPS 3Y6.6%

EPS 5Y15.72%

EPS Q2Q%14.13%

Revenue 1Y (TTM)7.86%

Revenue growth 3Y3.86%

Revenue growth 5Y14.66%

Sales Q2Q%7.32%

3.2 Future

The Earnings Per Share is expected to grow by 7.85% on average over the next years.
Based on estimates for the next years, TDY will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.

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.
The Revenue 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

A Price/Earnings ratio of 27.98 indicates a quite expensive valuation of TDY.
68.29% of the companies in the same industry are more expensive than TDY, based on the Price/Earnings ratio.
TDY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.82, which means the current valuation is very expensive for TDY.
64.23% of the companies in the same industry are more expensive than TDY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.95. TDY is around the same levels.

		Industry Rank	Sector Rank
PE	27.98
Fwd PE	25.82

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TDY is valued a bit cheaper than 63.41% of the companies in the same industry.
71.54% of the companies in the same industry are more expensive than TDY, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	26.93
EV/EBITDA	20.89

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TDY has an outstanding profitability rating, which may justify a higher PE ratio.