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Teledyne Technologies (TDY)
NYSE:TDY
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Teledyne Technologies
(NYSE:TDY)78Outperform
Positive Factors
Acquisition Impact
The completion of the acquisition of select A&D electronics businesses from Excelitas Technologies is expected to generate annualized revenues of ~$200MM.
Market Positioning
TDY is well positioned in key markets like space and defense, offering growth and potential thematic re-rating as priorities align with national interests.
Negative Factors
Sector Challenges
General factory automation pockets remain soft/stable, with Automotive being very weak.
Teledyne Technologies (TDY) vs. S&P 500 (SPY)
Market Cap
$23.28B
Dividend YieldN/A
Average Volume (3M)258.67K
Price to Earnings (P/E)28.5
Beta (1Y)0.67
Revenue Growth0.53%
EPS Growth-7.18%
CountryUS
Employees14,900
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)17.22
Shares Outstanding46,837,300
10 Day Avg. Volume290,440
30 Day Avg. Volume258,666
Financial Highlights & Ratios
PEG Ratio1.24
Price to Book (P/B)N/A
Price to Sales (P/S)4.11
Price to Cash Flow (P/CF)17.50
P/FCF Ratio15.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$564.00Price Target Upside16.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Teledyne Technologies Business Overview & Revenue Model
Company DescriptionTeledyne 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 MoneyTeledyne 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 exhibits strong financial performance with significant revenue growth, robust profitability margins, and effective cash flow management. The balance sheet is stable with low leverage, though minor declines in certain profitability metrics warrant monitoring.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.85
Very Positive
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.78
Positive
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.88
Very Positive
| 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
Neutral
482.94
Price Trends
490.96
Negative
480.18
Positive
445.47
Positive
Market Momentum
-0.56
Positive
40.48
Neutral
16.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDY, the sentiment is Neutral. The current price of 482.94 is below the 20-day moving average (MA) of 500.40, below the 50-day MA of 490.96, and above the 200-day MA of 445.47, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 40.48 is Neutral, neither overbought nor oversold. The STOCH value of 16.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TDY.
Teledyne Technologies Risk Analysis
Teledyne Technologies disclosed 42 risk factors in its most recent earnings report. Teledyne Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Teledyne Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $68.79B | 16.77 | 27.75% | 1.69% | 4.44% | 110.33% | |
78 Outperform | $23.28B | 28.52 | 8.73% | ― | 0.53% | -7.18% | |
73 Outperform | $7.61B | 13.89 | 12.56% | 2.73% | 0.71% | -18.39% | |
71 Outperform | $40.26B | 27.14 | 7.85% | 2.17% | 9.82% | 22.33% | |
68 Neutral | $75.42B | 47.33 | -29.16% | ― | 16.89% | 20.33% | |
64 Neutral | $13.33B | 16.95 | 11.63% | 0.11% | 0.14% | -5.38% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
TDY
Teledyne Technologies
482.94
58.04
13.66%
LHX
L3Harris Technologies
220.10
8.65
4.09%
HII
Huntington Ingalls
195.97
-85.61
-30.40%
NOC
Northrop Grumman
486.52
35.04
7.76%
TXT
Textron
75.42
-16.30
-17.77%
TDG
Transdigm Group
1,341.59
250.72
22.98%
Teledyne Technologies Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: 0.53% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The call presented a generally positive outlook with significant achievements in financial performance, strategic acquisitions, and segment growth. However, challenges such as declines in certain market segments, cost issues, and currency headwinds were acknowledged, leading to a cautious but optimistic outlook for 2025.Highlights
Record-Breaking Financial Performance
Fourth quarter and full year 2024 saw record non-GAAP earnings per share and operating margins. Annual free cash flow was over $1.1 billion, with a very low leverage despite $1.1 billion of capital deployment.
Micropac Acquisition and Excelitas Expansion
Successfully closed the Micropac acquisition and expect Excelitas carve-out to be completed in Q1 2025, indicating strategic growth in business portfolio.
Growth in Instrumentation Segment
Fourth quarter sales in the Instrumentation segment increased by 10.1%, with marine instruments growing 21.1% and environmental instruments by 1.7%.
Positive Book-to-Bill Ratio
Overall company book-to-bill ratio was 1.04, with particularly strong numbers in the marine business at 1.23.
Strong Free Cash Flow and Financial Flexibility
Free cash flow for 2024 was $1.11 billion, with a healthy M&A pipeline and high balance sheet capacity.
Lowlights
Decline in Industrial Machine Vision Markets
Sales to industrial machine vision markets declined year-over-year, despite overall growth in the Digital Imaging segment.
Challenges in Engineered Systems Segment
Despite an 11% revenue increase, the Engineered Systems segment saw a decrease in operating profit due to higher costs on certain programs.
Headwinds from Strong U.S. Dollar
The strong U.S. dollar presented a 1.3% headwind for 2025, affecting revenue growth projections.
Cautious Outlook on Short-Cycle Commercial Businesses
Short-cycle commercial businesses are expected to grow modestly, with concerns about foreign exchange and conservative inventory builds.
Company Guidance
In the Teledyne's Q4 2024 earnings call, the company conveyed a cautiously optimistic outlook for 2025, projecting a 4% sales growth with a 3.2% organic increase and an additional 1% from acquisitions, including Micropac and segments of Valeport and Adimec. The guidance anticipates an 8% rise in non-GAAP earnings at the center of the range. The Digital Imaging segment, which constitutes 54% of the portfolio, is expected to grow by 3.6%, bolstered by a 3.9% rise in FLIR. The Instrumentation segment demonstrated a robust 10.1% sales increase, and its operating margin improved to a record 29.1% on a non-GAAP basis. With a significant free cash flow of $1.11 billion in 2024 and a low leverage position, Teledyne aims to maintain disciplined capital deployment while anticipating more acquisitions. The company remains cautious due to foreign exchange headwinds projected at 1.3% and a strong U.S. dollar, which have been factored into its 2025 guidance.Teledyne Technologies Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Teledyne Technologies Reports Record Sales and Strategic Acquisitions
Positive
Jan 22, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.