Teradyne, Inc. logo TER - Teradyne, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 19
HOLD 12
SELL 0
STRONG
SELL
0
| PRICE TARGET: $461.50 DETAILS
HIGH: $550.00
LOW: $390.00
MEDIAN: $442.50
CONSENSUS: $461.50
UPSIDE: 27.31%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B+ 75.7 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 15%
B- 68.4
  • 5yr Avg ROIC 23.6% 98/100
  • Operating Margin Trend -2.67 pp/yr 0/100
Contributes 10.3 pts toward composite.

Capital Efficiency

Weight: 15%
A+ 98.1
  • 5yr Avg ROE 25.1% 100/100
  • 5yr Share-Count CAGR -2.9% 95/100
Contributes 14.7 pts toward composite.

Growth Quality

Weight: 10%
F 26.8
  • 5yr Revenue CAGR 0.4% 24/100
  • 5yr EPS CAGR -4.1% 12/100
  • Revenue-Growth Years (5) 3/5 60/100
Contributes 2.7 pts toward composite.

Cash Generation

Weight: 15%
A- 84.5
  • 5yr FCF Margin 17.2% 86/100
  • 5yr FCF/NI Conversion 0.83x 83/100
Contributes 12.7 pts toward composite.

Balance Sheet

Weight: 25%
A+ 97.6
  • Net Debt / EBITDA 0.03x 95/100
  • Interest Coverage (EBIT/Int) 93.69x 100/100
  • Altman Z-Score 26.50 100/100
Contributes 24.4 pts toward composite.

Stability

Weight: 20%
C 54.6
  • EPS Volatility (σ/μ) 0.45 36/100
  • Negative-Revenue Years (5) 2/5 60/100
  • Piotroski F-Score 7 78/100
Contributes 10.9 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Trimming

5 of 5 gurus held; 4 trimmed.

Holders
5
Avg Δ position
-41.4%
New buys
0
Full exits
0
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (20%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.