CluenexTeradyne Inc TER
Teradyne Inc scores good on business quality (7.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Teradyne Inc does
Teradyne builds automated test equipment that semiconductor manufacturers and electronics brands rely on to verify chips and complex hardware before shipping. Chipmakers pay them to ensure high-yield production and prevent costly field failures. The business is pushing deeper into automated test systems and advanced robotics to capture rising demand for AI-related semiconductor packaging.
- What it does best
Teradyne builds industry-leading semiconductor test equipment, delivering a gross margin of 59.2% that tops peers like LRCX at 50.5%. This edge relies on deep software integration and proprietary tester architectures that chip designers cannot easily swap out without risking yield loss.
- The main risk
The primary threat is cyclical exposure to semiconductor capital expenditure downturns, which can rapidly compress order volumes for automated test equipment. With revenue growth sitting at a modest 13.1%, any pause in customer fab upgrades directly hits top-line expansion.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin sits at 59.2% and FCF margin reaches 18.0%, supported by a strong ROE of 38.0%. Profitability is expanding as higher-value semiconductor test systems scale, proving the business extracts more margin as volume grows.
Teradyne holds a solid moat protecting its customer base of chipmakers through deep software and hardware integration. Operating margin ranks in the 80th percentile of its sector at 30.9%, reflecting pricing power that rivals struggle to replicate.
Revenue growth of 13.1% shows a moderate recovery, pulling ahead of recent historical troughs like the 2023 dip. The engine is fueled by semiconductor testing demand, though it remains middle of the pack in its sector at the 53rd percentile.
Debt-to-equity sits at a modest 0.1x with interest coverage at 121x, meaning debt costs are a non-issue. Free cash flow reached $800.0M, showing robust cash generation that is getting stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on TER
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Teradyne Inc scores good on the Cluenex quality check (7.0 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 27, 2026, after the close.
See TER today
- Today's verdict on TER, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Teradyne Inc (TER)”, https://cluenex.com/stocks/ter/, data as of Oct 10, 2026.