One-glance verdict
Within fair range
$595.53 our estimate vs market $598.51
Wall Street consensus: $757.25 (27.2% higher than our fair-value estimate)
1% above our estimate
Fundamentals snapshot
Teledyne Technologies Incorporated
TDY · NYQ · Technology · Scientific & Technical Instruments
Current price
$598.51
52-week range
$483.02 - $697.67
Market cap
$27.74B
Balance sheet
Healthy
19.29x Strong cushion
Net debt $1.69B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.2% last year.
- Reward Returns 9.2% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 12.9% above its 5-year average P/E.
What this company does
Teledyne Technologies Incorporated
Teledyne Technologies makes highly specialized digital cameras, sensors, and electronics for industries like defense, aerospace, and medical imaging. The company earns its money selling this unique equipment to governments and other businesses for critical tasks, which can create stable, long-term customer relationships and less direct competition.
How the company got here
Founded in 1960, Teledyne began by acquiring companies to build a major firm focused on microelectronics and control systems. Over the years, it grew into a large conglomerate by purchasing over 150 different businesses in areas from aerospace to consumer products. A major shift happened in 1999 when the company was split into separate, more focused public companies, creating the Teledyne Technologies we know today. Since then, it has concentrated on specialized industrial technology, making key acquisitions like FLIR Systems in 2021 to become a leader in digital imaging and sensors.
What it actually does
Teledyne makes highly specialized sensors, cameras, and electronics that work in extreme environments where precision and reliability are critical. Think of them as providing the high-tech 'eyes and ears' for industrial, scientific, and defense applications. For example, their products are used in deep-sea exploration, space missions, factory automation, and environmental monitoring to capture data and images that others can't. You wouldn't find their products in a retail store, as they are sold to other businesses and governments for use in larger systems, like aircraft, medical equipment, or underwater vehicles.
Digital Imaging
This is Teledyne's largest business segment, making up the biggest piece of its sales. It creates advanced cameras and sensors that can 'see' in different light spectrums, like infrared (heat), X-ray, and ultraviolet, not just visible light. Customers in industrial automation use these to inspect products on an assembly line, while defense and public safety agencies use them for surveillance and threat detection. This segment also produces tiny mechanical systems (called MEMS) used in a variety of electronics.
Instrumentation
This division builds sophisticated tools that monitor and measure things in the environment and for industrial processes. For example, they make devices that check for water and air pollution, as well as instruments that help scientists study the ocean. Another part of this business creates electronic test equipment, like oscilloscopes (devices that show electrical signals), which engineers use to design and test new electronics. Customers include government environmental agencies, scientific researchers, and companies that need to precisely control their manufacturing processes.
Aerospace and Defense Electronics
This segment provides the rugged and reliable electronic brains and communication systems for airplanes, satellites, and military equipment. They make everything from data recorders and wireless systems for commercial aircraft to specialized components for radar and missile systems. Because these products are used in harsh environments like outer space or inside a jet engine, customers like aerospace manufacturers and defense agencies pay for their extreme reliability. This part of the company ensures that critical systems function correctly under intense conditions.
Engineered Systems
This is a more project-based part of Teledyne that provides complex engineering and manufacturing services for unique challenges in defense, space, and energy. Instead of selling a standard product, this group might design and build a custom system for a government agency or a specialized piece of equipment for an energy company. For example, they develop technology for space missions and create energy systems like hydrogen generators. This segment is smaller than the others and its revenue (income from sales) can be less predictable because it depends on winning specific, large-scale projects.
What management is betting on now
The company's strategy focuses on growing in its core high-tech markets where there are high barriers to entry (it's difficult for new competitors to join). A key part of this is continuing to make strategic acquisitions (buying other companies) that add new, complementary technologies to their portfolio. Management is also focused on operational excellence (running the business efficiently to improve profits) and developing new products internally. They see major opportunities in areas like defense modernization, industrial automation, and ocean science, where demand for advanced sensing and data is growing.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$228.70M
FY2024 Q4
$303.40M
FY2025 Q1
$224.60M
FY2025 Q2
$196.30M
FY2025 Q3
$313.90M
FY2025 Q4
$339.20M
FY2026 Q1
$204.30M
FY2026 Q2
$284.70M
Revenue
$1.66B
Net income
$251.70M
Diluted EPS
5.37
Operating cash flow
$315.20M
Free cash flow
$284.70M
Fetching…
Sources
Revenue
$1.56B
Net income
$226.80M
Diluted EPS
4.85
Operating cash flow
$234.00M
Free cash flow
$204.30M
Fetching…
Sources
Revenue
$1.61B
Net income
$275.60M
Diluted EPS
5.81
Operating cash flow
$379.00M
Free cash flow
$339.20M
Fetching…
Sources
Revenue
$1.54B
Net income
$220.70M
Diluted EPS
4.65
Operating cash flow
$343.10M
Free cash flow
$313.90M
Fetching…
Sources
Revenue
$1.51B
Net income
$209.90M
Diluted EPS
4.43
Operating cash flow
$226.60M
Free cash flow
$196.30M
Fetching…
Sources
Revenue
$1.45B
Net income
$188.60M
Diluted EPS
3.99
Operating cash flow
$242.60M
Free cash flow
$224.60M
Fetching…
Sources
Revenue
$1.50B
Net income
$198.50M
Diluted EPS
4.18
Operating cash flow
$332.40M
Free cash flow
$303.40M
Fetching…
Sources
Revenue
$1.44B
Net income
$262.00M
Diluted EPS
5.54
Operating cash flow
$249.80M
Free cash flow
$228.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $595.53 vs current price $598.51
Wall Street consensus is the average analyst price target: $757.25 (27.2% higher than our fair-value estimate).
Our most-likely fair value is $595.53 a share — about 0.5% away from today's price of $598.51, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $1.7B. Interest coverage 19.3x.
Net debt
$1.69B
Interest coverage
19.29x
Teledyne Technologies Incorporated's profit covers its interest bill about 19.3 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
TDY
BASELINE
Teledyne Technologies Incorporated
Total debt $2.03B Interest coverage 19.29x This is the baseline the peer rows are being compared against.
Total debt $2.31B Interest coverage 23.51x +22% vs TDY Carries about 1.2x more debt cushion than TDY.
Total debt $2.77B Interest coverage 9.12x -53% vs TDY Carries about 2.1x less debt cushion than TDY.
Total debt $11.32B Interest coverage 6.88x -64% vs TDY Carries about 2.8x less debt cushion than TDY.
Total debt $4.15B Interest coverage 13.21x -32% vs TDY Carries about 1.5x less debt cushion than TDY.
Total debt $5.48B Interest coverage 11.54x -40% vs TDY Carries about 1.7x less debt cushion than TDY.
What you should know
The case for and against TDY
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.2% last year.
-
Returns 9.2% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 12.9% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.90x
Forward P/E
22.36x
P/B
2.54x
P/S
4.35x
EV/EBITDA
18.48x
PEG ratio
1.40x
Profitability
How much profit each dollar creates
Gross margin
43.3%
Operating margin
20.2%
Net margin
15.3%
ROE
9.2%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.19x
Current ratio
2.18x
Quick ratio
1.16x
Total debt
$2.03B
Total cash
$340.10M
Growth
How the business has been compounding
Revenue TTM
$6.37B
Revenue 5Y CAGR
7.3%
EPS TTM
20.71
EPS 5Y CAGR
4.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.27B
Free CF TTM
$1.07B
FCF margin
16.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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