Moderate P/E Ratio
Strong Price-to-Sales Ratio
Strong Net Profit Margin
Solid Return on Equity
Strong Liquidity Ratios
Low Debt Levels
📈 Record Performance
🔒 Strong Market Position
💰 Prudent Capital Allocation
🚀 Growth in Defense Sector
🌟 Innovation Potential
High EV/EBITDA Ratio
Moderate Operating Profit Margin
Low Cash Ratio
⚠️ Cautious Outlook
🔄 Slow Recovery in Legacy Markets
💵 FX Headwinds
Teledyne exhibits a robust business model with strong performance metrics and a healthy market position, particularly in the defense sector. However, caution regarding future growth due to currency effects and slower recovery in certain legacy markets suggests a balanced outlook. Overall, the company's strategic acquisitions and innovation potential position it well for future growth, but challenges remain.
Analysis Date: January 22, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$675.26
Current Market Price: $437.79
IV/P Ratio: 1.54x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
35.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for TDY
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (24.89)
P/B ratio ≤ 1.5 (2.14)
Current ratio ≥ 2.0 (2.33x)
Long-term debt < Net current assets (1.57x)
Margin of safety (35.0%)
TDY does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The net profit margin of 14.45% indicates effective cost management and profitability, reflecting positively on the company's ability to convert revenue into actual profit.
With a return on equity (ROE) of 8.67%, the company demonstrates a decent ability to generate profit from shareholders' equity, indicating good profitability.
An operating profit margin of 17.43% is decent but suggests there may be room for improvement in operational efficiency.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
8.67%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.40%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
42.06%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
14.45%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
The current ratio of 2.33 and quick ratio of 1.61 indicate that the company has a strong ability to meet its short-term liabilities, reflecting healthy liquidity.
A debt-to-equity ratio of 0.28 and a debt-to-assets ratio of 0.19 indicate that the company is not heavily reliant on debt, suggesting strong financial health.
With a cash ratio of 0.52, the company may not have enough cash to cover its current liabilities, which could be a concern in times of financial distress.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.28x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.33x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Teledyne achieved multiple all-time records in Q4 2024, including record sales growth of 5.4% and non-GAAP earnings per share. Their operating margins also reached record levels, indicating strong operational efficiency.
Teledyne's focus on both commercial and defense markets positions them well, particularly in unmanned platforms where they maintain a competitive edge. Their defense businesses favor purchase orders, providing stability in revenue.
The company demonstrated flexibility in capital deployment, repurchasing stock when undervalued and pursuing strategic acquisitions, such as Micropac and Excelitas, to strengthen their portfolio.
Despite strong performance, the company has expressed caution regarding the 2025 outlook due to a strong US dollar and potential headwinds in short-cycle markets, which could impact growth.
The defense segment is expected to continue growing due to increased government spending and Teledyne's strong positioning in unmanned systems, which remain a priority for defense budgets.
Teledyne's focus on new product development, particularly in Digital Imaging, positions them well for future growth. They are optimistic about recovery in short-cycle businesses and have a healthy backlog.
The legacy Digital Imaging business has shown slower recovery than expected, which could dampen overall growth and market sentiment.
The strong US dollar is expected to create headwinds in revenue growth, impacting international sales and overall performance.