Teradyne, Inc. (TER) Margin Analysis - Discounting Cash Flows

Teradyne, Inc.

TER (NASDAQ)

(%)

Models
Teradyne, Inc. Margin Analysis

# --- Years and Quarters
assumptions.set({
    "timeseries": "annual",
    "data": {
        "#years": """
            4
        """,
        "#quarters": """
            8
        """,
    },
    "titles": {
        "#years": "Years",
        "#quarters": "Quarters",
    },
    "properties": {
        "width": "responsive",
        "title": "Years and Quarters",
        "id": "component-1",
        "bindTo": None
    },
    "descriptions": {
        "#years": r"""
The number of historical years used to render the annual chart and tables.
        """,
        "#quarters": r"""
The number of historical quarters used to render the quarterly chart and tables.
        """,
    }
})

# Render description block
model.render_description({
    "data": r"""
## Margin Analysis Report

Margins refer to the ratio between a financial report item and the revenue (example: Net Income Margin = Net Income / Revenue).

This analysis provides annual and quarterly sections for reporting key financial margins.
""",
    "properties": {
        "width": "responsive"
    }
})

# Render description block
model.render_description({
    "data": r"""
## Annual Section

The annual section uses annual data to calculate margins and growth rates.
""",
    "properties": {
        "width": "full"
    }
})

# --- Income Statement Margins
data.compute({
    "user:%revenueGrowthRate": """
        ( income:revenue / income:revenue:-1 ) - 1
    """,
    "user:%grossMargin": """
        income:grossProfit / income:revenue
    """,
    "user:%operatingMargin": """
        income:operatingIncome / income:revenue
    """,
    "user:%netMargin": """
        income:netIncome / income:revenue
    """,
}, forecast=0, timeseries="annual")

model.render_table({
    "timeseries": "annual",
    "data": {
        "income:revenue": "Revenue",
        "user:%revenueGrowthRate": "Revenue Growth Rate",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "user:%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "user:%operatingMargin": "Operating Margin",
        "income:netIncome": "Net Income",
        "user:%netMargin": "Net Margin",
    },
    "start": data.get("""
        -assumption:#years
    """),
    "end": 0,
    "properties": {
        "title": "Income Statement Margins",
        "order": "descending",
        "number_format": "M",
        "include_ltm": True,
        "display_averages": False,
        "width": "responsive"
    }
})

# --- Cash Flow Statement Margins
data.compute({
    "user:%cashFromOperatingActivitiesMargin": """
        flow:netCashProvidedByOperatingActivities / income:revenue
    """,
    "user:%freeCashFlowMargin": """
        flow:freeCashFlow / income:revenue
    """,
    "user:%depreciationAndAmortizationMargin": """
        flow:depreciationAndAmortization / income:revenue
    """,
    "user:%capitalExpenditureMargin": """
        flow:capitalExpenditure / income:revenue
    """,
}, forecast=0, timeseries="annual")

model.render_table({
    "timeseries": "annual",
    "data": {
        "income:revenue": "Revenue",
        "flow:netCashProvidedByOperatingActivities": "Cash from Operating Activities",
        "user:%cashFromOperatingActivitiesMargin": "Cash from Operating Activities Margin",
        "flow:freeCashFlow": "Free Cash Flow",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
        "flow:depreciationAndAmortization": "Depreciation and Amortization",
        "user:%depreciationAndAmortizationMargin": "Depreciation and Amortization Margin",
        "flow:capitalExpenditure": "Capital Expenditure",
        "user:%capitalExpenditureMargin": "Capital Expenditure Margin",
    },
    "start": data.get("""
        -assumption:#years
    """),
    "end": 0,
    "properties": {
        "title": "Cash Flow Statement Margins",
        "order": "descending",
        "number_format": "M",
        "include_ltm": True,
        "display_averages": False,
        "width": "responsive"
    }
})

model.render_chart({
    "timeseries": "annual",
    "data": {
        "user:%grossMargin": "Gross Margin",
        "user:%operatingMargin": "Operating Margin",
        "user:%netMargin": "Net Margin",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
    },
    "start": data.get("""
        -assumption:#years
    """),
    "end": 0,
    "properties": {
        "title": "Annual Chart",
        "include_ltm": False,
        "set_editable": [],
        "hidden_keys": [],
        "bar_keys": ["user:%grossMargin", "user:%operatingMargin", "user:%netMargin", "user:%freeCashFlowMargin"],
        "width": "full"
    }
})

# Render description block
model.render_description({
    "data": r"""
## Quarterly Section

The quarterly section uses quarterly data to calculate margins and growth rates.
""",
    "properties": {
        "width": "full"
    }
})

model.render_table({
    "timeseries": "quarterly",
    "data": {
        "income:revenue": "Revenue",
        "user:%revenueGrowthRate": "Revenue Growth Rate",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "user:%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "user:%operatingMargin": "Operating Margin",
        "income:netIncome": "Net Income",
        "user:%netMargin": "Net Margin",
    },
    "start": data.get("""
        -assumption:#quarters
    """),
    "end": 0,
    "properties": {
        "title": "Income Statement Margins",
        "order": "descending",
        "number_format": "M",
        "display_averages": False,
        "width": "responsive"
    }
})

model.render_table({
    "timeseries": "quarterly",
    "data": {
        "income:revenue": "Revenue",
        "flow:netCashProvidedByOperatingActivities": "Cash from Operating Activities",
        "user:%cashFromOperatingActivitiesMargin": "Cash from Operating Activities Margin",
        "flow:freeCashFlow": "Free Cash Flow",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
        "flow:depreciationAndAmortization": "Depreciation and Amortization",
        "user:%depreciationAndAmortizationMargin": "Depreciation and Amortization Margin",
        "flow:capitalExpenditure": "Capital Expenditure",
        "user:%capitalExpenditureMargin": "Capital Expenditure Margin",
    },
    "start": data.get("""
        -assumption:#quarters
    """),
    "end": 0,
    "properties": {
        "title": "Cash Flow Statement Margins",
        "order": "descending",
        "number_format": "M",
        "display_averages": False,
        "width": "responsive"
    }
})

model.render_chart({
    "timeseries": "quarterly",
    "data": {
        "user:%grossMargin": "Gross Margin",
        "user:%operatingMargin": "Operating Margin",
        "user:%netMargin": "Net Margin",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
    },
    "start": data.get("""
        -assumption:#quarters
    """),
    "end": 0,
    "properties": {
        "title": "Quarterly Chart",
        "set_editable": [],
        "hidden_keys": [],
        "bar_keys": ["user:%grossMargin", "user:%operatingMargin", "user:%netMargin", "user:%freeCashFlowMargin"],
        "width": "full"
    }
})

Years and Quarters

Years Years The number of historical years used to render the annual chart and tables.	#
Quarters Quarters The number of historical quarters used to render the quarterly chart and tables.	#

Margin Analysis Report

Margins refer to the ratio between a financial report item and the revenue (example: Net Income Margin = Net Income / Revenue).

This analysis provides annual and quarterly sections for reporting key financial margins.

Annual Section

The annual section uses annual data to calculate margins and growth rates.

Income Statement Margins

Monetary values in USD amounts except #	LTM Mar 15	2025 Dec 31	2024 Dec 31	2023 Dec 31	2022 Dec 31
Revenue	3,190	3,190	2,820	2,676	3,155
Revenue Growth Rate	0%	13.13%	5.37%	-15.17%	-14.79%
Cost of Revenue	1,330	1,322	1,171	1,140	1,288
Gross Profit	1,860	1,868	1,649	1,537	1,867
Gross Margin	58.32%	58.55%	58.48%	57.42%	59.18%
Operating Income	667	693.4	593.8	501.1	831.9
Operating Margin	20.91%	21.74%	21.06%	18.72%	26.37%
Net Income	554	554	542.4	448.8	715.5
Net Margin	17.37%	17.37%	19.23%	16.77%	22.68%

Cash Flow Statement Margins

Monetary values in USD amounts except #	LTM Mar 15	2025 Dec 31	2024 Dec 31	2023 Dec 31	2022 Dec 31
Revenue	3,190	3,190	2,820	2,676	3,155
Cash from Operating Activities	674.4	674.4	672.2	585.2	577.9
Cash from Operating Activities Margin	21.14%	21.14%	23.84%	21.87%	18.32%
Free Cash Flow	450.4	450.4	474.1	425.6	414.7
Free Cash Flow Margin	14.12%	14.12%	16.81%	15.9%	13.14%
Depreciation and Amortization	127.1	126.7	119.7	111.1	110.1
Depreciation and Amortization Margin	3.98%	3.97%	4.25%	4.15%	3.49%
Capital Expenditure	-224	-224	-198.1	-159.6	-163.2
Capital Expenditure Margin	-7.02%	-7.02%	-7.03%	-5.96%	-5.17%

Annual Chart

Monetary values in USD

{"sectionId": "section-chart-1", "sectionType": "chart", "title": "Annual Chart", "timeseries": "annual", "series": [{"label": "Gross Margin", "mappingKey": "user:%grossMargin", "data": [{"l": "2022", "x": "2022-12-31", "y": 59.18}, {"l": "2023", "x": "2023-12-31", "y": 57.42}, {"l": "2024", "x": "2024-12-31", "y": 58.48}, {"l": "2025", "x": "2025-12-31", "y": 58.55}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}, {"label": "Operating Margin", "mappingKey": "user:%operatingMargin", "data": [{"l": "2022", "x": "2022-12-31", "y": 26.37}, {"l": "2023", "x": "2023-12-31", "y": 18.72}, {"l": "2024", "x": "2024-12-31", "y": 21.06}, {"l": "2025", "x": "2025-12-31", "y": 21.74}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}, {"label": "Net Margin", "mappingKey": "user:%netMargin", "data": [{"l": "2022", "x": "2022-12-31", "y": 22.68}, {"l": "2023", "x": "2023-12-31", "y": 16.77}, {"l": "2024", "x": "2024-12-31", "y": 19.23}, {"l": "2025", "x": "2025-12-31", "y": 17.37}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}, {"label": "Free Cash Flow Margin", "mappingKey": "user:%freeCashFlowMargin", "data": [{"l": "2022", "x": "2022-12-31", "y": 13.14}, {"l": "2023", "x": "2023-12-31", "y": 15.9}, {"l": "2024", "x": "2024-12-31", "y": 16.81}, {"l": "2025", "x": "2025-12-31", "y": 14.12}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}], "editableDates": {}, "properties": {"display_table": false}, "width": "full"}

Quarterly Section

The quarterly section uses quarterly data to calculate margins and growth rates.

Income Statement Margins

Monetary values in USD amounts except #	2025 (Q4) Dec 31	2025 (Q3) Sep 28	2025 (Q2) Jun 29	2025 (Q1) Mar 30	2024 (Q4) Dec 31	2024 (Q3) Sep 29
Revenue	1,083	769.2	651.8	685.7	752.9	737.3
Revenue Growth Rate	40.84%	18.01%	-4.94%	-8.93%	2.11%
Cost of Revenue	460.5	319.9	278.8	270.3	305.6	300.8
Gross Profit	622.8	449.3	373	415.3	447.3	436.5
Gross Margin	57.49%	58.41%	57.23%	60.57%	59.41%	59.2%
Operating Income	310.2	145.3	90.74	120.8	153.6	152.1
Operating Margin	28.63%	18.89%	13.92%	17.62%	20.4%	20.62%
Net Income	257.2	119.6	78.37	98.9	146.3	145.6
Net Margin	23.74%	15.54%	12.02%	14.42%	19.43%	19.75%

Cash Flow Statement Margins

Monetary values in USD amounts except #	2025 (Q4) Dec 31	2025 (Q3) Sep 28	2025 (Q2) Jun 29	2025 (Q1) Mar 30	2024 (Q4) Dec 31	2024 (Q3) Sep 29
Revenue	1,083	769.2	651.8	685.7	752.9	737.3
Cash from Operating Activities	281.6	49.05	182.1	161.6	282.6	166.3
Cash from Operating Activities Margin	26%	6.38%	27.94%	23.57%	37.53%	22.55%
Free Cash Flow	218.7	2.36	131.7	97.62	225.2	114.4
Free Cash Flow Margin	20.19%	0.307%	20.2%	14.24%	29.91%	15.52%
Depreciation and Amortization	35.77	30.16	31.05	30.1	31.15	30.3
Depreciation and Amortization Margin	3.3%	3.92%	4.76%	4.39%	4.14%	4.11%
Capital Expenditure	-62.89	-46.69	-50.41	-64.02	-57.38	-51.84
Capital Expenditure Margin	-5.8%	-6.07%	-7.73%	-9.34%	-7.62%	-7.03%

Quarterly Chart

Monetary values in USD

{"sectionId": "section-chart-2", "sectionType": "chart", "title": "Quarterly Chart", "timeseries": "quarterly", "series": [{"label": "Gross Margin", "mappingKey": "user:%grossMargin", "data": [{"l": "2024 (Q3)", "x": "2024-09-29", "y": 59.2}, {"l": "2024 (Q4)", "x": "2024-12-31", "y": 59.41}, {"l": "2025 (Q1)", "x": "2025-03-30", "y": 60.57}, {"l": "2025 (Q2)", "x": "2025-06-29", "y": 57.23}, {"l": "2025 (Q3)", "x": "2025-09-28", "y": 58.41}, {"l": "2025 (Q4)", "x": "2025-12-31", "y": 57.49}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}, {"label": "Operating Margin", "mappingKey": "user:%operatingMargin", "data": [{"l": "2024 (Q3)", "x": "2024-09-29", "y": 20.62}, {"l": "2024 (Q4)", "x": "2024-12-31", "y": 20.4}, {"l": "2025 (Q1)", "x": "2025-03-30", "y": 17.62}, {"l": "2025 (Q2)", "x": "2025-06-29", "y": 13.92}, {"l": "2025 (Q3)", "x": "2025-09-28", "y": 18.89}, {"l": "2025 (Q4)", "x": "2025-12-31", "y": 28.63}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}, {"label": "Net Margin", "mappingKey": "user:%netMargin", "data": [{"l": "2024 (Q3)", "x": "2024-09-29", "y": 19.75}, {"l": "2024 (Q4)", "x": "2024-12-31", "y": 19.43}, {"l": "2025 (Q1)", "x": "2025-03-30", "y": 14.42}, {"l": "2025 (Q2)", "x": "2025-06-29", "y": 12.02}, {"l": "2025 (Q3)", "x": "2025-09-28", "y": 15.54}, {"l": "2025 (Q4)", "x": "2025-12-31", "y": 23.74}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}, {"label": "Free Cash Flow Margin", "mappingKey": "user:%freeCashFlowMargin", "data": [{"l": "2024 (Q3)", "x": "2024-09-29", "y": 15.52}, {"l": "2024 (Q4)", "x": "2024-12-31", "y": 29.91}, {"l": "2025 (Q1)", "x": "2025-03-30", "y": 14.24}, {"l": "2025 (Q2)", "x": "2025-06-29", "y": 20.2}, {"l": "2025 (Q3)", "x": "2025-09-28", "y": 0.307}, {"l": "2025 (Q4)", "x": "2025-12-31", "y": 20.19}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}], "editableDates": {}, "properties": {"display_table": false}, "width": "full"}