Teledyne Technologies is revolutionizing how industries operate, shaping everything from environmental monitoring to advanced aerospace solutions. With a robust portfolio that includes cutting-edge instrumentation and digital imaging technologies, the company stands at the forefront of innovation within the Hardware, Equipment & Parts sector. Recognized for its commitment to quality and excellence, Teledyne is not just a player; it’s a game-changer. As we delve into this analysis, I invite you to consider whether Teledyne’s fundamentals still align with its current market valuation and growth trajectory.
Table of contents
Company Description
Teledyne Technologies Incorporated, founded in 1960 and headquartered in Thousand Oaks, California, operates at the forefront of the hardware, equipment, and parts industry. With a market capitalization of approximately 24.5B, Teledyne specializes in enabling technologies across various industrial growth markets, including aerospace, defense, and environmental applications. Their diverse product range includes monitoring instruments, digital imaging systems, and advanced electronic components. Teledyne serves key markets in North America and Europe, leveraging a robust internal sales force alongside third-party distributors. The company’s strategic focus on innovation and integrated solutions positions it as a leader in shaping technological advancements within its sector.
Fundamental Analysis
In this section, I will analyze Teledyne Technologies Incorporated’s income statement, financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
The following table presents the Income Statement for Teledyne Technologies Incorporated (TDY) over the last five fiscal years, highlighting key financial metrics.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 3.09B | 4.61B | 5.46B | 5.64B | 5.67B |
| Cost of Revenue | 1.91B | 2.77B | 3.13B | 3.20B | 3.24B |
| Operating Expenses | 0.70B | 1.22B | 1.36B | 1.41B | 1.45B |
| Gross Profit | 1.18B | 1.84B | 2.33B | 2.44B | 2.43B |
| EBITDA | 0.60B | 0.99B | 1.33B | 1.35B | 1.31B |
| EBIT | 0.49B | 0.62B | 0.99B | 1.04B | 1.00B |
| Interest Expense | 0.015B | 0.09B | 0.09B | 0.08B | 0.06B |
| Net Income | 0.40B | 0.45B | 0.79B | 0.89B | 0.82B |
| EPS | 10.95 | 10.31 | 16.85 | 18.71 | 17.43 |
| Filing Date | – | 2022-02-25 | 2023-02-24 | 2023-12-31 | 2025-02-21 |
Interpretation of Income Statement
Over the past five years, Teledyne Technologies has shown steady revenue growth from 3.09B in 2020 to 5.67B in 2024. Notably, net income also increased significantly, peaking at 0.89B in 2023 before slightly declining to 0.82B in 2024. The gross profit margin remained relatively stable, indicating effective cost management despite rising operating expenses. While the most recent year saw a slight decrease in net income and EPS, overall performance suggests a healthy, growing company with consistent operational efficiency and resilience against market fluctuations.
Financial Ratios
Here is the summary of the financial ratios for Teledyne Technologies Incorporated (TDY) across the available fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Net Margin | 9.65% | 14.45% | 15.72% | 14.45% |
| ROE | 5.84% | 9.65% | 9.61% | 8.58% |
| ROIC | 4.03% | 6.43% | 7.16% | 6.67% |
| P/E | 42.38 | 23.73 | 23.85 | 26.53 |
| P/B | 2.48 | 2.29 | 2.29 | 2.28 |
| Current Ratio | 1.62 | 1.85 | 1.69 | 2.33 |
| Quick Ratio | 1.12 | 1.27 | 1.17 | 1.61 |
| D/E | 0.54 | 0.48 | 0.35 | 0.29 |
| Debt-to-Assets | 28.38% | 27.31% | 22.34% | 19.64% |
| Interest Coverage | 6.88 | 10.88 | 13.38 | 17.08 |
| Asset Turnover | 0.32 | 0.38 | 0.39 | 0.40 |
| Fixed Asset Turnover | 5.58 | 7.09 | 7.25 | 7.61 |
| Dividend Yield | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Teledyne Technologies Incorporated (TDY) shows robust liquidity with a current ratio of 2.33 and a quick ratio of 1.61, indicating strong short-term financial health. Its solvency ratio stands at 0.24, suggesting moderate leverage, while the debt-to-equity ratio of 0.29 reflects a conservative capital structure. Profitability is solid, with a net profit margin of 14.4% and an EBITDA margin of 22.5%. However, the price-to-earnings ratio (26.5) may indicate overvaluation, especially given the negative price-to-earnings growth ratio. Investors should be cautious about the company’s reliance on debt, as evidenced by a financial leverage ratio of 1.49 and a debt service coverage ratio of 20.42, which, while high, requires ongoing scrutiny.
Evolution of Financial Ratios
Over the past five years, TDY’s financial ratios have generally improved, particularly in profitability and liquidity. The current ratio has increased from 1.62 in 2021 to 2.33, indicating enhanced short-term financial stability, while the net profit margin has also shown a positive trend, enhancing investor confidence.
Distribution Policy
Teledyne Technologies Incorporated (TDY) does not currently pay dividends, reflecting a strategic focus on reinvestment to fuel growth and innovation. The company’s negative dividend payout ratio indicates that profits are being redirected towards research and development and potential acquisitions. Additionally, TDY engages in share buybacks, which can enhance shareholder value by reducing the number of outstanding shares. This approach, while risky, may align with sustainable long-term value creation if managed prudently.
Sector Analysis
Teledyne Technologies Incorporated operates in the Hardware, Equipment & Parts industry, specializing in advanced instrumentation and electronic systems for diverse markets. Its competitive advantages include a broad product portfolio and strong market presence, while challenges stem from market competition and technological advancements.
Strategic Positioning
Teledyne Technologies Incorporated (TDY) holds a notable position within the hardware, equipment, and parts sector, with a market cap of approximately $24.5B. The company has been steadily growing its market share, particularly in its Instrumentation and Aerospace segments, where it faces competitive pressure from established players and emerging technological disruptions. Benchmarking against peers reveals that TDY is adept at leveraging innovation in digital imaging and defense electronics, helping to mitigate risks associated with market volatility and technological advancements. However, the landscape remains competitive, necessitating continuous adaptation and investment in R&D to maintain its edge.
Revenue by Segment
The pie chart below illustrates Teledyne Technologies Incorporated’s revenue distribution across its key business segments for the fiscal year 2024.
In FY 2024, Teledyne’s revenue was primarily driven by Digital Imaging, contributing 3.07B, followed by Instrumentation at 1.38B, Aerospace and Defense Electronics at 776.8M, and Engineered Systems at 439.8M. The Digital Imaging segment has shown resilience, maintaining its lead despite slight fluctuations from previous years. Notably, the Aerospace and Defense Electronics segment has seen slower growth compared to the prior year, which may raise concerns about market saturation and margin risks. Overall, the diversification across segments appears solid, yet attention to emerging trends in defense spending is advisable.
Key Products
Teledyne Technologies Incorporated offers a diverse range of products across various segments that support industrial growth and technological advancement. Below is a table summarizing some of their key products:
| Product | Description |
|---|---|
| Marine Monitoring Systems | Instruments designed for environmental monitoring and control in marine applications, ensuring safety and compliance. |
| Digital Cameras | High-resolution sensors and cameras used in industrial machine vision and automated quality control processes. |
| Thermal Imaging Systems | Advanced imaging systems used for detecting heat signatures in various applications, including security and diagnostics. |
| Defense Electronics | Electronic components and systems designed for use in military applications, enhancing communications and data acquisition. |
| Electrochemical Energy Systems | Innovative energy solutions for military and aerospace applications, focusing on efficiency and reliability. |
| Infrared Spectroscopy Equipment | Instruments for analyzing materials across industrial and medical fields, providing critical data for research and quality assurance. |
These products reflect Teledyne’s commitment to providing cutting-edge technologies that meet the needs of various industries.
Main Competitors
The competitive landscape for Teledyne Technologies Incorporated (TDY) includes several established players in the hardware, equipment, and parts industry. Below is a summary of the main competitors, sorted by market capitalization:
| Company | Market Cap |
|---|---|
| Coherent, Inc. | 28.25B |
| Broadridge Financial Solutions, Inc. | 27.18B |
| HP Inc. | 24.22B |
| Leidos Holdings, Inc. | 23.89B |
| Jabil Inc. | 23.51B |
| NetApp, Inc. | 23.41B |
| VeriSign, Inc. | 23.13B |
| Flex Ltd. | 23.08B |
| Teledyne Technologies Incorporated | 24.52B |
| Trimble Inc. | 19.87B |
| Fortive Corporation | 18.23B |
In summary, Teledyne Technologies operates in a competitive market alongside significant players like Coherent, Broadridge, and HP. This landscape primarily encompasses the North American and global markets.
Competitive Advantages
Teledyne Technologies Incorporated (TDY) boasts several competitive advantages that position it favorably in the market. The company operates across diverse segments, including instrumentation, digital imaging, and aerospace and defense electronics, which allows it to leverage synergies and cross-market products. Looking ahead, Teledyne is expected to introduce new technologies focused on environmental monitoring and advanced imaging, tapping into growing markets in renewable energy and autonomous systems. This strategic focus on innovation, combined with its strong market presence, provides significant opportunities for expansion and revenue growth.
SWOT Analysis
The following SWOT analysis evaluates Teledyne Technologies Incorporated’s current strategic position in the market.
Strengths
- Strong market position
- Diverse product offerings
- Established brand reputation
Weaknesses
- No regular dividend
- High reliance on government contracts
- Limited international presence
Opportunities
- Growth in industrial automation
- Expansion in defense and aerospace markets
- Increasing demand for digital imaging technology
Threats
- Intense competition
- Economic downturn impacts
- Regulatory changes in defense spending
Overall, the SWOT assessment highlights Teledyne’s robust position and growth potential, but it also underscores vulnerabilities tied to market dynamics and customer dependency. To navigate these challenges, the company should leverage its strengths while strategically addressing weaknesses and threats.
Stock Analysis
Teledyne Technologies Incorporated (TDY) has experienced notable price movements over the past year, culminating in a current bullish trend as indicated by an 18.58% increase in stock price.
Trend Analysis
Over the past year, TDY’s stock price has increased by 18.58%. This clearly indicates a bullish trend. However, more recently, from September 21, 2025, to December 7, 2025, the stock experienced a decline of 7.62%. The highest price recorded during this period was 587.62, while the lowest was 374.64. Despite the recent downturn, the overall trend shows signs of deceleration, with a standard deviation of 53.65 indicating some volatility.
Volume Analysis
In the last three months, the total trading volume for TDY reached approximately 160M shares, with 52.76% of that volume driven by buyers. Notably, trading volume has been increasing, suggesting a heightened interest in the stock. However, in the recent period from September 21 to December 7, buyer activity dropped to 36.68%, indicating a seller-dominant market. This shift in volume dynamics may reflect caution among investors, potentially impacting future price movements.
Analyst Opinions
Recent recommendations for Teledyne Technologies Incorporated (TDY) show a consensus leaning towards a “buy” rating. Analysts highlight the company’s strong discounted cash flow score (4) and robust return metrics, with a return on equity score of 3 and return on assets score of 4. However, concerns regarding its debt-to-equity ratio (2) and price-to-earnings score (2) temper the enthusiasm. Notably, analysts have emphasized TDY’s solid fundamentals and growth potential, making it a favorable choice for investors in 2025.
Stock Grades
Teledyne Technologies Incorporated (TDY) has received consistent grades from several reputable grading companies, reflecting a stable outlook for the stock.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Buy | 2025-10-23 |
| Barclays | Maintain | Equal Weight | 2025-10-23 |
| Stifel | Maintain | Buy | 2025-10-23 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-15 |
| UBS | Maintain | Buy | 2025-07-24 |
| Needham | Maintain | Buy | 2025-07-23 |
| Morgan Stanley | Maintain | Equal Weight | 2025-07-17 |
| Needham | Maintain | Buy | 2025-04-24 |
| TD Securities | Maintain | Buy | 2025-04-24 |
| B of A Securities | Maintain | Buy | 2025-03-17 |
Overall, the trend shows a strong preference for “Buy” ratings, indicating positive sentiment among analysts regarding Teledyne Technologies, while a couple of firms maintain an “Equal Weight” rating, suggesting a more cautious outlook.
Target Prices
The consensus target prices for Teledyne Technologies Incorporated (TDY) indicate a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 645 | 584 | 616 |
Overall, analysts expect TDY to reach a consensus target price of 616, suggesting confidence in the company’s future performance.
Consumer Opinions
Consumer sentiment regarding Teledyne Technologies Incorporated (TDY) reflects a blend of appreciation and concern, showcasing both the strengths and weaknesses of the company’s offerings.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative technology solutions that drive efficiency.” | “Customer service response times are slow.” |
| “High-quality products with reliable performance.” | “Pricing can be on the higher side.” |
| “Strong focus on R&D, leading to cutting-edge developments.” | “Some products have a steep learning curve.” |
Overall, consumer feedback highlights Teledyne’s commitment to innovation and product quality as significant strengths, while concerns about customer service and pricing persist as common weaknesses.
Risk Analysis
In assessing the investment in Teledyne Technologies Incorporated (TDY), it’s crucial to understand the potential risks that could affect performance. Below is a summary of key risks associated with the company:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for technology solutions. | High | High |
| Regulatory Risk | Changes in government regulations affecting operations. | Medium | High |
| Supply Chain Risk | Disruptions in global supply chains. | High | Medium |
| Competition Risk | Increased competition in technology sectors. | Medium | Medium |
| Cybersecurity Risk | Potential data breaches impacting operations. | High | High |
The most significant risks for TDY currently involve market fluctuations and cybersecurity threats, both of which can severely impact financial outcomes. Recent industry trends indicate growing competition and regulatory scrutiny, underscoring the need for cautious investment strategies.
Should You Buy Teledyne Technologies Incorporated?
Teledyne Technologies Incorporated (TDY) reported a net income of 819.2M for the fiscal year 2024, indicating strong profitability with a net profit margin of 14.45%. The company’s return on invested capital (ROIC) stands at 6.67%, which is below the weighted average cost of capital (WACC) of 8.05%, suggesting value destruction. Moreover, with total debt at 2.79B and a debt-to-equity ratio of 0.112, the company’s leverage appears manageable. The overall rating for TDY is B+, which reflects a stable performance but may imply caution for potential investors.
Favorable signals
Teledyne Technologies Incorporated demonstrates several favorable elements in its financial evaluation. The company has a positive net margin of 14.45%, indicating effective profitability. Additionally, the gross margin stands at 42.94%, suggesting strong pricing power and cost management. The EBIT margin of 17.56% further underscores operational efficiency, while a current ratio of 2.33 and a quick ratio of 1.61 indicate good liquidity. Furthermore, the debt-to-equity ratio of 0.29 and an interest coverage ratio of 17.2 suggest sound financial leverage and debt management.
Unfavorable signals
Despite some positives, there are several unfavorable elements that should be noted. Revenue growth is at 0.61%, which is unfavorable, while gross profit growth has decreased by 0.19%. The EBIT growth of -3.9% and a net margin growth of -8.07% further indicate declining profitability trends. Additionally, the return on equity stands at 8.58%, which is unfavorable, and the price-to-earnings ratio of 26.53 suggests potential overvaluation.
Conclusion
Given the mixed signals, with a favorable global ratios opinion but an unfavorable global income statement opinion, I might interpret this situation as a cautious one. The recent seller volume exceeds buyer volume, suggesting that it could be prudent to wait for buyers to return before making any decisions regarding investment.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Teledyne Technologies Incorporated $TDY Shares Sold by Panagora Asset Management Inc. – MarketBeat (Dec 06, 2025)
- Teledyne (TDY): Assessing Valuation After Launch of Xtium3 PCIe Gen4 Industrial Imaging Series – Yahoo Finance (Dec 04, 2025)
- Teledyne to Participate in the Goldman Sachs Industrials Conference – Business Wire (Dec 03, 2025)
- Teledyne (TDY) Secures $42.5M Contract from U.S. Marine Corps – GuruFocus (Dec 05, 2025)
- 1,497,740 Shares in Teledyne Technologies Incorporated $TDY Bought by Dodge & Cox – MarketBeat (Dec 05, 2025)
For more information about Teledyne Technologies Incorporated, please visit the official website: teledyne.com
