Teledyne Technologies (TDY) AI Stock Analysis

• Market Cap: $21.77B
• Dividend Yield: N/A
• Average Volume (3M): 312.62K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.78
• Revenue Growth: 2.98%
• EPS Growth: -5.64%
• Country: US
• Employees: 14,900
• Sector: Technology
• Sector Strength: 65
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 5.52
• Shares Outstanding: 46,837,300
• 10 Day Avg. Volume: 338,818
• 30 Day Avg. Volume: 312,620
• PEG Ratio: N/A
• 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: 1.12
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.04
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $558.00
• Price Target Upside: 19.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Teledyne Technologies exhibits strong financial performance and a positive outlook from the latest earnings call, driving the stock's appeal. However, some caution is warranted due to mixed technical indicators and potential market uncertainties. The stock is fairly valued, offering potential growth opportunities but requires careful monitoring of market conditions.

Positive Factors

Acquisitions

The acquisition of the defense electronic business 'Qioptic' is seen as a positive due to increased exposure to defense markets, especially in Europe.

Financial Performance

Teledyne reaffirmed its full-year EPS and revenue guidance.

Leadership

The appointment of George Bobb III as CEO is viewed positively due to his prior experience and tenure at Teledyne.

Negative Factors

Growth Potential

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

Tariffs

Headwinds from tariffs appear to be manageable, with exposure to China being around 5% of revenues.

Teledyne Technologies Business Overview & Revenue Model

Company Description

Teledyne Technologies Incorporated is a diversified industrial conglomerate primarily engaged in providing advanced instrumentation, digital imaging products, aerospace and defense electronics, and engineered systems. The company operates across various sectors including aerospace, defense, marine, environmental, and industrial markets. Teledyne's core products and services include sophisticated sensors, cameras, monitoring and control instrumentation, and specialized systems for mission-critical applications.

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 demonstrates strong financial performance with robust profitability, solid operational efficiency, and minimal debt reliance. The company has a strong income statement with increasing revenue and solid margins. The balance sheet is healthy with a high equity ratio, and cash flow management is commendable, although there is room for improvement in liquidity and capital allocation.

Income Statement

Teledyne Technologies has shown a strong income statement performance with increasing total revenue and consistent growth in gross profit. The TTM (Trailing-Twelve-Months) gross profit margin stands at 42.9%, and the net profit margin is 14.4%, indicating strong profitability. Revenue growth is positive, with a 2% increase from the previous year, showcasing a steady upward trend. The EBIT margin of 17.6% and EBITDA margin of 21.7% reflect solid operational efficiency. Despite the positive trajectory, net income slightly decreased from the previous year, which could hint at potential challenges in maintaining net income growth.

Balance Sheet

The balance sheet of Teledyne Technologies is strong, with a high equity ratio of 65.9%, indicating that a significant portion of the company's assets is financed by equity. The debt-to-equity ratio is exceptionally low at 0.00002, showing minimal reliance on debt financing. Return on Equity (ROE) is robust at 8.4%, reflecting effective use of shareholders' capital to generate profits. However, the decline in cash and short-term investments might suggest a need for improved liquidity management.

Cash Flow

Teledyne Technologies demonstrates strong cash flow management, with a healthy operating cash flow to net income ratio of 1.38 in TTM (Trailing-Twelve-Months), indicating that the company generates substantial cash from its operations relative to its net income. The free cash flow has grown positively, reflecting efficient capital expenditure management. However, there is a decline in free cash flow from the previous year, signaling potential areas for improvement in capital allocation.

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: Positive
• Last Price: 466.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDY, the sentiment is Positive. The current price of 466.26 is above the 20-day moving average (MA) of 458.56, below the 50-day MA of 482.08, and above the 200-day MA of 461.67, indicating a neutral trend. The MACD of -5.60 indicates Negative momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 86.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDY.

Teledyne Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDY	77 Outperform	$21.77B	26.98	8.61%	―	2.98%	-5.64%
KEYS	71 Outperform	$25.13B	41.64	12.22%	―	-6.07%	-35.80%
FTV	71 Outperform	$22.70B	28.29	8.12%	0.46%	2.75%	-2.90%
TRMB	67 Neutral	$14.83B	10.18	29.37%	―	-3.04%	388.42%
GLW	66 Neutral	$38.02B	85.13	4.14%	2.52%	9.77%	-26.50%
Sector *	59 Neutral	$10.75B	10.37	-6.64%	3.00%	7.30%	-12.02%
COHR	51 Neutral	$10.72B	―	0.88%	―	14.61%	85.44%

Teledyne Technologies Corporate Events

Teledyne Technologies Adopts Majority Voting Provisions

At the 2025 Annual Meeting of Stockholders held on April 23, 2025, Teledyne Technologies approved amendments to its Restated Certificate of Incorporation to adopt majority voting provisions, replacing the previous supermajority requirements. This change signifies a shift towards more streamlined governance, potentially impacting shareholder influence and decision-making processes. Additionally, the meeting saw the election of Class II directors, the ratification of Deloitte & Touche LLP as the independent auditor, and the approval of executive compensation and shareholder rights to call special meetings.

Spark’s Take on TDY Stock

According to Spark, TipRanks’ AI Analyst, TDY is a Outperform.

Teledyne Technologies shows strong financial fundamentals and a positive strategic outlook with projected growth and successful acquisitions. However, technical analysis indicates potential short-term pressure, and the valuation suggests moderate pricing. The earnings call supports a positive long-term view despite acknowledging certain challenges. Overall, Teledyne is well-positioned with robust financial health but faces some near-term market pressures.

To see Spark’s full report on TDY stock, click here.