TER

Teradyne Inc

Industrial/Transportation, TMT


Presented:05/29/2018
Price:$38.55
Cap:$7.84B
Current Price:$127.36
Cap:$20.78B

Presented

Date05/29/2018
Price$38.55
Market Cap$7.84B
Ent Value$8.17B
P/E Ratio30.12x
Book Value$9.83
Div Yield0.93%
Shares O/S203.48M
Ave Daily Vol3,278,763
Short Int4.01%

Current

Price$127.36
Market Cap$20.78B
Teradyne, Inc. engages in the supply of automation equipment for test and industrial applications. It operates through the following segments: Semiconductor Test, System Test, Wireless Test, and Industrial Automation. The Semiconductor Test segment designs, manufactures, sells, and supports semiconductor test products and services which are used both for wafer level and device package testing. The Systems Test segment comprises of defense and aerospace, storage test, and production board test business unit. The Wireless Test segment designs, develops, and supports advanced wireless test equipment for the manufacturing of wireless devices such as smart phones, tablets, notebooks, laptops, personal computer peripherals, and other Wi-Fi, bluetooth, near field communication and cellular enabled devices. The Industrial Automation segment supplies collaborative robots that work side by side with production workers . The company was founded by Alexander V. d'Arbeloff and Nicholas DeWolf on September 23, 1960 and is headquartered in North Reading, MA.

Publicly traded companies mentioned herein: ABB Ltd (ABB), Advantest Corporation (6875 JP), Apple Inc (AAPL), Fanuc Corporation (6954 JP), KUKA AG (KU2 GR), Teradyne Inc (TER)

Highlights

The presenter views the recent selloff in Teradyne stock (TER) as a buying opportunity. Shares performed very well over 2017, rising from $25 to ~$50; however, the stock fell back to the low $30s in early 2018 due to guidance being slashed, in part because of Apple cutting back spending on testing equipment this year (given a change in the mix of chips it is using in iPhones). While semiconductor testing equipment is ~85% of revenue, and shrinking, it has historically been a “good” business; and, TER is also a leader in the market for collaborative robots (aka cobots), which are used in industrial automation. With the latter segment expected to grow better than 50% YoY, and a major earnings reset behind the company, the presenter sees the potential for EPS to grow to $3 - $4 by 2020 - 2021. At 17x, the price target is $50+ in 12 - 24 months.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.