Teledyne Technologies (TDY) AI Stock Analysis

• Market Cap: $23.30B
• Dividend Yield: N/A
• Average Volume (3M): 345.62K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.74
• Revenue Growth: 2.98%
• EPS Growth: -5.64%
• Country: US
• Employees: 14,900
• Sector: Technology
• Sector Strength: 89
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 4.95
• Shares Outstanding: 46,859,344
• 10 Day Avg. Volume: 420,745
• 30 Day Avg. Volume: 345,616
• PEG Ratio: 18.43
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.56
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 10.23
• Enterprise Value/Ebitda: 4.76
• 1Y Price Target: $576.20
• Price Target Upside: 13.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $550.00 ▲(8.55%Upside)

Teledyne Technologies' strong financial performance and positive earnings call are the most significant factors driving the overall score. Despite valuation concerns and mixed technical indicators, the company's operational efficiency, robust order intake, and strategic acquisitions position it well for future growth.

Positive Factors

Financial Guidance

Teledyne reaffirmed its full-year EPS and revenue guidance.

Leadership Stability

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

Mergers and Acquisitions

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

Negative Factors

Growth Potential

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

Macroeconomic Challenges

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 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 makes money through its diverse portfolio of products and services spread across multiple sectors. The company generates revenue primarily from the sale of advanced instrumentation and communication products used in aerospace and defense, environmental monitoring, and marine exploration. Key revenue streams include contracts with government agencies for defense-related projects, sales of environmental monitoring equipment, and digital imaging technologies. In addition, the company benefits from long-term strategic partnerships and collaborations with industry leaders, which enhance its market reach and technological capabilities. Teledyne's ability to innovate and adapt to emerging technologies allows it to maintain a competitive edge and sustain its revenue growth.

Teledyne Technologies Financial Statement Overview

Summary

Teledyne Technologies shows robust financial performance with strong profitability and operational efficiency. The company has solid margins and revenue growth, supported by a high equity ratio and low debt reliance. Cash flow management is sound, though 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	TTM	Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.77B	5.67B	5.64B	5.46B	4.61B	3.09B
Gross Profit	2.47B	2.43B	2.44B	2.33B	1.84B	1.18B
EBITDA	1.33B	1.29B	1.36B	1.34B	982.00M	604.10M
Net Income	829.30M	819.20M	885.70M	788.60M	445.30M	401.90M
Balance Sheet
Total Assets	15.05B	14.20B	14.53B	14.35B	14.45B	5.07B
Cash, Cash Equivalents and Short-Term Investments	461.50M	649.80M	648.30M	638.10M	474.70M	673.10M
Total Debt	2.96B	2.65B	3.24B	3.92B	4.10B	778.50M
Total Liabilities	5.12B	4.65B	5.30B	6.20B	6.82B	1.84B
Stockholders Equity	9.93B	9.55B	9.22B	8.16B	7.62B	3.23B
Cash Flow
Free Cash Flow	1.06B	1.11B	721.20M	394.20M	723.00M	547.50M
Operating Cash Flow	1.14B	1.19B	836.10M	486.80M	824.60M	618.90M
Investing Cash Flow	-966.30M	-207.20M	-190.30M	-175.40M	-3.82B	-99.40M
Financing Cash Flow	-612.30M	-945.80M	-651.50M	-110.00M	2.81B	-61.80M

Teledyne Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 506.67
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 506.67 is above the 20-day moving average (MA) of 495.95, above the 50-day MA of 485.05, and above the 200-day MA of 476.46, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 64.00 is Neutral, neither overbought nor oversold. The STOCH value of 76.21 is Neutral, 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
KEYS	78 Outperform	$28.25B	38.55	14.30%	―	-1.16%	-7.04%
TRMB	77 Outperform	$17.68B	12.07	31.00%	―	-6.93%	537.94%
TDY	76 Outperform	$23.30B	28.96	8.61%	―	2.98%	-5.64%
FTV	74 Outperform	$23.82B	31.03	7.70%	0.46%	0.85%	-10.01%
Sector *	69 Neutral	¥228.25B	14.58	7.64%	2.72%	9.09%	8.36%
COHR	69 Neutral	$13.31B	―	1.25%	―	21.68%	92.07%
GLW	64 Neutral	$44.01B	98.39	4.14%	2.18%	9.77%	-26.50%

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.