Investment Thesis
Teledyne demonstrates robust operational performance with strong revenue growth of 7.9% YoY and exceptional operating margins of 18.8%, indicating effective operational leverage and pricing power. The company maintains solid financial health with conservative leverage (0.24x debt/equity), strong interest coverage (19.3x), and generates substantial free cash flow of $1.1B, providing flexibility for growth investments and shareholder returns.
TDY Strengths
- Strong revenue growth of 7.9% YoY with $6.1B in revenues demonstrates solid top-line expansion
- Exceptional operating margin of 18.8% and net margin of 14.6% indicate efficient operations and profitability
- Robust free cash flow generation of $1.1B (17.6% FCF margin) exceeds net income, reflecting quality earnings
- Conservative balance sheet with low leverage (0.24x debt/equity) and strong interest coverage (19.3x)
- Healthy liquidity position with current ratio of 1.64x and quick ratio of 1.08x
TDY Risks
- Gross margin of only 3.6% is concerningly low and suggests potential supply chain or pricing pressures in the underlying business
- Weak return on equity (8.5%) and ROA (5.9%) indicate modest efficiency in deploying capital despite strong profitability margins
- Net income growth stalled (-0.1% YoY) while revenue grew 7.9%, suggesting margin compression or operational headwinds
- Capital intensity remains moderate at $117.3M capex, but free cash flow conversion needs monitoring given margin pressure
Key Metrics to Watch
- Gross profit growth and gross margin trend - critical given the extremely low 3.6% reading
- Operating income growth rate and sustainability of 18.8% operating margins
- Free cash flow growth and cash conversion cycle efficiency
- Revenue growth acceleration and segment performance breakdown
TDY Financial Metrics
TDY Profitability Ratios
TDY Balance Sheet & Liquidity
TDY 5-Year Financial Trend
5-Year Trend Summary: TELEDYNE TECHNOLOGIES INC's revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $18.49 reflects profitable operations.
TDY Growth Metrics (YoY)
TDY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.4B | $178.5M | $4.65 |
| Q2 2025 | $1.4B | $178.5M | $3.77 |
| Q1 2025 | $1.4B | $178.5M | $3.72 |
| Q3 2024 | $1.4B | $178.5M | $4.15 |
| Q2 2024 | $1.4B | $178.5M | $3.77 |
| Q1 2024 | $1.4B | $178.5M | $3.72 |
| Q3 2023 | $1.4B | $171.3M | $3.74 |
| Q2 2023 | $1.4B | $171.3M | $3.59 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
TDY Capital Allocation
TDY SEC Filings
Access official SEC EDGAR filings for TELEDYNE TECHNOLOGIES INC (CIK: 0001094285)