Teradyne to continue upswing in February
 | By Vlad Skutelnik | Macroaxis Story |
This firm current daily volatility is 1.57 percent, with beta of 0.3 and alpha of 0.2 over Russell 2000 . Teradyne has current Real Value of $68.18 per share. The regular price of the company is $67.93. At this time the company appears to be fairly valued. This module measures value of Teradyne from inspecting the company fundamentals such as Operating Margin of 28.44 , Return On Equity of 0.31 and Shares Outstanding of 167.58 M as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend to buy undervalued stocks and to dispose of overvalued stocks since at some point securities prices and their ongoing real values will draw towards each other.
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Reviewed by Michael Smolkin
The company has 456.14 M in debt with debt to equity (D/E) ratio of 30.7 . This implies that the organization may be unable to create cash to meet all of its financial commitments. Teradyne dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.18 per share. The company has Net Profit Margin of 0.23 % which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 28.44 % which entails that for every 100 dollars of revenue it generated 0.28 of operating income. Teradyne financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Teradyne, including all of Teradyne's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Teradyne assets, the company is considered highly leveraged. Understanding the composition and structure of overall Teradyne debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Teradyne Total Liabilities
Teradyne liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Teradyne has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Teradyne balance sheet include debt obligations and money owed to different Teradyne vendors, workers, and loan providers. Below is the chart of Teradyne short long-term liabilities accounts currently reported on its balance sheet. You can use Teradyne financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Teradyne's Liquidity
Teradyne financial leverage refers to using borrowed capital as a funding source to finance Teradyne ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Teradyne financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Teradyne's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Teradyne's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Teradyne's total debt and its cash.
What is driving Teradyne Investor Appetite?
The modest gains experienced by current holders of Teradyne has created some momentum for investors as it was traded today as low as 67.825 and as high as 68.88 per share. The company management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in December. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.57. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Teradyne preserves 5.29 of price to sales. Teradyne is selling for under 67.93. That is 0.48 percent decrease. Opened at 67.93. Teradyne Issuance Purchase of Equity Shares is relatively stable at the moment. Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The company was founded in 1960 and is headquartered in North Reading, Massachusetts. Teradyne operates under Semiconductor Equipment Materials classification in USA and is traded on BATS Exchange. It employs 5300 people.Taking everything into account, our analysis show that Teradyne Follows market closely. The enterprise is fairly valued and projects odds of financial turmoil very small for the next 2 years. Our present 'Buy vs. Hold vs. Sell' recommendation on the enterprise is Strong Hold.
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