Teledyne Technologies (TDY) AI Stock Analysis

• Market Cap: $21.95B
• Dividend Yield: N/A
• Average Volume (3M): 308.61K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.76
• Revenue Growth: 0.53%
• EPS Growth: -7.18%
• Country: US
• Employees: 14,900
• Sector: Technology
• Sector Strength: 40
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 17.22
• Shares Outstanding: 46,837,300
• 10 Day Avg. Volume: 309,154
• 30 Day Avg. Volume: 308,610
• PEG Ratio: 1.24
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.15
• Price to Cash Flow (P/CF): 17.70
• P/FCF Ratio: 15.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $574.00
• Price Target Upside: 22.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Teledyne Technologies demonstrates strong financial performance with robust revenue growth and cash flow management. The stock's technical indicators are mixed, suggesting cautious optimism. Its current valuation is relatively high, which may limit potential upside. The earnings call provided a positive outlook, emphasizing strategic acquisitions and growth, though noted challenges such as currency headwinds. Overall, the company's solid financial health and strategic positioning support a healthy stock score, despite valuation concerns.

Positive Factors

Defense Sector Growth

Teledyne's defense segment is on solid footing with broad growth drivers, supported by global demand for its products.

European Market Expansion

The Excelitas carve out enhances Teledyne's European presence and strengthens its existing programs, particularly in the defense sector.

Market Positioning

Teledyne's conservative product development strategy positions the company in the right areas for growth.

Negative Factors

Factory Automation Market

General factory automation pockets remain soft/stable, with Automotive being very weak.

Growth Potential Challenges

Teledyne's short cycle businesses have stabilized but show no real recovery, which may impact overall growth potential.

Short Cycle Business Stability

Teledyne's short cycle businesses have stabilized but show no real recovery, which may impact overall growth potential.

Teledyne Technologies Business Overview & Revenue Model

Company Description

Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets in the United States, Canada, the United Kingdom, Belgium, the Netherlands, and internationally. The company's Instrumentation segment offers monitoring and control instruments for marine, environmental, industrial, and other applications, as well as electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. Its Digital Imaging segment provides visible spectrum sensors and digital cameras for industrial machine vision and automated quality control, as well as for medical, research, and scientific applications; and infrared and X-ray spectra for use in industrial, government, and medical applications, as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, as well as communications products, such as defense electronics, environment interconnects, data acquisition and communications equipment for aircraft, components and subsystems for wireless and satellite communications, and general aviation batteries. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company markets and sells its products and services through a direct internal sales force, as well as third-party sales representatives and distributors. Teledyne Technologies Incorporated was founded in 1960 and is headquartered in Thousand Oaks, California.

How the Company Makes Money

Teledyne Technologies generates revenue through the sale of its diverse range of products and services primarily to government agencies, commercial customers, and industrial clients. The company's key revenue streams include sales of high-performance sensors and digital imaging products, aerospace and defense electronics, and engineered systems for critical applications. Teledyne often engages in long-term contracts with government and defense organizations, providing a stable revenue base. Additionally, the company benefits from strategic partnerships and collaborations that enhance its technological capabilities and expand its market reach, contributing to its earnings growth.

Teledyne Technologies Financial Statement Overview

Summary

Teledyne Technologies has shown strong financial performance with significant revenue growth, robust profitability margins, and effective cash flow management. The company's balance sheet reflects a stable capital structure with low leverage, though there are minor declines in certain profitability metrics that warrant attention.

Income Statement

Teledyne Technologies has shown a consistent increase in revenue, with a revenue growth rate from 2022 to 2023 of around 22.1%, and a slight increase from 2023 to 2024. The gross profit margin for 2024 is approximately 42.9%, indicating strong profitability. However, the net profit margin has slightly decreased from 15.7% in 2023 to 14.5% in 2024. The EBIT margin is 17.4% for 2024, reflecting strong operational efficiency, but there is a slight decline in EBITDA margin from 24.1% in 2023 to 17.4% in 2024. Overall, the company demonstrates strong revenue growth and profitability, though there are marginal dips in some profitability margins.

Balance Sheet

The company maintains a solid equity base with a debt-to-equity ratio of 0.28 in 2024, showing low leverage, which is a positive sign for financial stability. The return on equity is strong at 8.6% for 2024, indicating efficient use of shareholder funds. The equity ratio is around 67.3% for 2024, suggesting a strong capital structure. However, the total assets have slightly decreased, and there is a continued reliance on debt, though it's declining, which could pose a risk if not managed carefully.

Cash Flow

Teledyne Technologies has demonstrated strong cash flow management with a free cash flow growth rate of approximately 53.7% from 2023 to 2024. The operating cash flow to net income ratio is 1.45, indicating robust cash generation relative to net earnings. The free cash flow to net income ratio is 1.35 for 2024, showing efficient conversion of profits into cash. The company's cash flow position is strong, supporting its operational and investment activities effectively.

Breakdown
Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
5.67B	5.64B	5.46B	4.61B	3.09B
	Gross Profit
2.43B	2.44B	2.33B	1.84B	1.18B
	EBIT
989.10M	1.05B	972.00M	624.30M	368.80M
	EBITDA
989.10M	1.36B	1.34B	982.00M	604.10M
	Net Income Common Stockholders
819.20M	885.70M	788.60M	445.30M	401.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
649.80M	648.30M	638.10M	474.70M	673.10M
	Total Assets
14.20B	14.53B	14.35B	14.45B	5.07B
	Total Debt
2.65B	3.24B	3.92B	4.10B	778.50M
	Net Debt
2.00B	2.60B	3.28B	3.62B	105.40M
	Total Liabilities
4.65B	5.30B	6.20B	6.82B	1.84B
	Stockholders Equity
9.55B	9.22B	8.16B	7.62B	3.23B
Cash Flow		Free Cash Flow
1.11B	721.20M	394.20M	723.00M	547.50M
	Operating Cash Flow
1.19B	836.10M	486.80M	824.60M	618.90M
	Investing Cash Flow
-207.20M	-190.30M	-175.40M	-3.82B	-99.40M
	Financing Cash Flow
-945.80M	-651.50M	-110.00M	2.81B	-61.80M

Teledyne Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 468.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDY, the sentiment is Negative. The current price of 468.69 is below the 20-day moving average (MA) of 486.27, below the 50-day MA of 494.90, and above the 200-day MA of 456.44, indicating a neutral trend. The MACD of 1.45 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 24.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TDY.

Teledyne Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDY	76 Outperform	$21.95B	27.21	8.73%	―	0.53%	-7.18%
FTV	73 Outperform	$23.06B	28.70	8.12%	0.51%	2.75%	-2.90%
TRMB	70 Outperform	$15.11B	10.08	29.37%	―	-3.04%	388.42%
KEYS	66 Neutral	$24.63B	40.81	12.22%	―	-6.07%	-35.80%
GLW	63 Neutral	$33.94B	68.02	4.55%	2.86%	4.21%	-13.56%
Sector *	57 Neutral	$20.31B	10.03	-14.49%	2.79%	5.15%	-23.76%
COHR	53 Neutral	$8.19B	―	0.88%	―	14.61%	85.44%

Teledyne Technologies Corporate Events

Teledyne Technologies Reports Record Sales and Strategic Acquisitions

Teledyne Technologies announced record sales of $1,502.3 million for the fourth quarter of 2024, a 5.4% increase from the previous year, despite a decrease in net income. The company also completed the acquisition of Micropac Industries and plans further acquisitions, positioning itself for growth while managing capital deployment and maintaining a low leverage ratio.