Teledyne Technologies Inc (TDY) stock analysis

P/E above its 5-year median

Teledyne Technologies's P/E of 29.6 is above its own 5-year median of 27.8.

P/E below the industry

Teledyne Technologies's P/E of 29.6 is below the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 30.0.

EV/EBITDA above its 5-year median

Teledyne Technologies's EV/EBITDA of 19.0 is above its 5-year median of 18.6.

P/B below the industry

Teledyne Technologies's price-to-book of 2.68 is below the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 3.29.

Trading above fair value

The share price of $647.57 is above our fair value estimate of $571.26.

Margin of safety under 20%

The price is 13.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 4.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 25.6% over the last twelve months, against a 5-year average of 17.4% a year.

Growing slower than the industry

Revenue grew 8.6% over the last twelve months; the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median is 8.6%.

Guidance raised

Teledyne Technologies raised its full year 2026 GAAP diluted earnings per share outlook on Jul 22, 2026.

Gross margin improving

Gross margin was 43.6% over the last twelve months, against 42.7% a year earlier.

Return on equity under 15%

Return on equity was 9.5% over the last twelve months and averaged 9.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 8.4%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Teledyne Technologies's return on equity of 9.5% is below the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 9.5%.

Earnings grew over 5 years

Net income grew 17.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 15.8% over the last twelve months, against a 5-year average of 13.8%.

Net margin above the industry

Teledyne Technologies's net margin of 15.8% is above the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 9.4%.

Low debt

Debt is 18.2% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 24.1% five years ago to 18.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 63.2% of total debt.

Interest well covered

Operating income covers interest expense 26.9 times.

Short-term assets cover short-term debts

Current assets are 2.31 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.60; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Teledyne Technologies has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.