Teledyne Technologies Incorporated
TDY
$0.00
+0.83%
Teledyne Technologies Incorporated is a technology company providing enabling technologies for sensing, analyzing, and distributing information in industrial growth markets. It is a leader in high-reliability hardware and equipment, with core advantages in advanced digital imaging, instrumentation, and aerospace and defense electronics.…
TDY
Teledyne Technologies Incorporated
$0.00
Investment Opinion: Should I buy TDY Today?
Based on a synthesis of the data, the objective assessment for Teledyne (TDY) is a Hold. The company exhibits strong fundamentals, including revenue growth, improving margins, and a robust balance sheet. However, its current valuation appears full, with a high P/E and PEG ratio, and the stock is undergoing a significant technical correction after a strong rally. Investors already holding the stock may find reasons to maintain their position, but new money may want to wait for a better entry point or clearer signs that the growth premium is justified.
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TDY 12-Month Price Forecast
The data supports a neutral stance. The company's quality is not in question, but its stock price appears to have run ahead of fundamentals, leading to a recent correction. The path of least resistance seems to be consolidation within a range, with the base case being the most probable outcome.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Teledyne Technologies Incorporated's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
6 analysts
Implied Upside
—
vs. current price
Analyst Count
6
covering this stock
Price Range
$0 - $0
Analyst target range
Wall Street analyst coverage for Teledyne is limited, with only 6 analysts providing estimates. The provided data includes consensus estimates for EPS and revenue but does not include a consensus target price or a breakdown of ratings (e.g., Buy, Hold, Sell). Recent institutional ratings from firms like Jefferies, Stifel, and Needham show 'Buy' actions, while Barclays, Morgan Stanley, and Citigroup have issued 'Equal Weight' or 'Neutral' ratings. Without a consolidated target price or sufficient breadth of coverage details, a definitive analyst consensus summary is not available from the provided data.
Bulls vs Bears: TDY Investment Factors
Teledyne presents a mixed picture with strong fundamentals and a solid market position offset by a high valuation and recent technical weakness. The company's financial health and growth trajectory are positive, but the stock's recent pullback from highs warrants caution.
Bullish
- Strong Financial Position: Low debt-to-equity of 0.25 and robust free cash flow of $1.07B TTM.
- Solid Revenue & Profit Growth: Q4 revenue grew 7.32% YoY, with net margin improving to 17.09%.
- Premium Market Positioning: Leader in high-reliability hardware for industrial growth markets.
- Positive Long-Term Technical Trend: Stock up 18.46% over 3 months, significantly outperforming the S&P 500.
Bearish
- Elevated Valuation Multiples: P/E of 27.35 and PEG of 3.29 suggest a premium price.
- Recent Sharp Price Correction: Down 11.17% over the past month, indicating potential profit-taking.
- Limited Analyst Coverage: Only 6 analysts provide estimates, reducing consensus clarity.
- High Volatility & Market Sensitivity: Beta near 1.0 and recent drawdown of -18.39% show volatility.
TDY Technical Analysis
The stock has demonstrated significant volatility over the past six months, with a strong recovery from a low near $484 in late November 2025 to a recent high above $688 in early March 2026. The overall trend is positive, with the stock up 3.92% over six months and 18.46% over three months, significantly outperforming the broader market. However, the stock has pulled back from its recent highs, declining 11.17% over the past month, which is a steeper drop than the S&P 500's 5.25% decline.
Short-term performance shows a sharp rally from January through February 2026, followed by a correction in March. The 1-month decline of 11.17% contrasts with the strong 3-month gain of 18.46%, indicating recent profit-taking or a shift in sentiment. The stock's relative strength versus the S&P 500 is positive over the 3-month and 6-month periods, but negative over the past month.
As of April 1, 2026, the current price of $605.01 sits approximately 12.7% below its 52-week high of $693.38 and 44.4% above its 52-week low of $419.00. This places the stock in the upper half of its yearly range, though well off its recent peak. No RSI data was provided for a more granular assessment of overbought or oversold conditions.
Beta
1.01
1.01x market volatility
Max Drawdown
-18.4%
Largest decline past year
52-Week Range
$419-$693
Price range past year
Annual Return
+24.7%
Cumulative gain past year
| Period | TDY Return | S&P 500 |
|---|---|---|
| 1m | -9.2% | -4.3% |
| 3m | +20.1% | -4.0% |
| 6m | +6.0% | -2.0% |
| 1y | +24.7% | +22.2% |
| ytd | +20.1% | -3.8% |
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TDY Fundamental Analysis
Revenue growth has been steady, with Q4 2025 revenue of $1.61 billion representing a 7.32% year-over-year increase from the same quarter in 2024. Quarterly sequential revenue also grew from Q3's $1.54 billion. Profitability metrics show a net margin of 14.63% (TTM), with the Q4 2025 net income margin at 17.09%, an improvement from 13.21% in Q4 2024. Operating margin stands at a healthy 18.80%.
The company maintains a strong financial position with a low debt-to-equity ratio of 0.25, indicating a conservative capital structure. The current ratio of 1.64 suggests sufficient liquidity to cover short-term obligations. Free cash flow generation is robust, with TTM free cash flow reported at $1.07 billion, supporting operational flexibility and potential shareholder returns.
Operational efficiency is solid, with a Return on Equity (ROE) of 8.51% and a Return on Assets (ROA) of 4.92%. The company's asset turnover and other operational metrics indicate efficient use of its capital base to generate sales and profits, supporting its position in high-technology, high-margin industrial markets.
Quarterly Revenue
$1.6B
2025-12
Revenue YoY Growth
+0.07%
YoY Comparison
Gross Margin
+0.29%
Latest Quarter
Free Cash Flow
$1.1B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is TDY Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. Teledyne's trailing P/E ratio is 27.35, while its forward P/E is 23.54, suggesting the market expects future earnings growth. The PEG ratio of 3.29, based on trailing earnings, indicates the stock may be trading at a premium relative to its expected growth rate.
Other valuation multiples include a Price-to-Sales (P/S) ratio of 4.00 and an Enterprise Value-to-Sales (EV/Sales) ratio of 4.96. The Price-to-Book (P/B) ratio is 2.33. No industry average comparison data was provided in the valuation inputs, so a direct peer comparison cannot be made. The valuation appears to reflect the company's premium positioning in its niche technology markets.
PE
27.3x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 16x~76x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
18.0x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risks for Teledyne stem from its valuation and market sensitivity. With a trailing P/E of 27.35 and a PEG ratio of 3.29, the stock is priced for significant growth, making it vulnerable to earnings disappointments or a sector-wide de-rating. Its beta of 0.975 indicates it moves nearly in line with the broader market, exposing it to macroeconomic headwinds and potential defense/aerospace spending shifts. The recent 11.17% one-month decline, steeper than the S&P 500's drop, highlights its volatility and susceptibility to profit-taking after strong rallies. Furthermore, limited analyst coverage (only 6 firms) can lead to less efficient price discovery and higher volatility around earnings events. While the company's low debt and strong cash flow mitigate financial risk, its premium valuation in a potentially slowing economic environment remains a key concern.
FAQ
The key risks include valuation compression, market volatility, and sector-specific headwinds. The high P/E and PEG ratios make the stock sensitive to any earnings disappointment or shift in investor sentiment toward growth stocks. With a beta near 1.0, it is exposed to broad market downturns. Additionally, as a supplier to aerospace and defense, its performance can be influenced by government budget cycles and geopolitical factors.
The 12-month outlook presents a range of scenarios. The base case (60% probability) sees the stock trading between $580 and $690, as steady execution supports its current forward P/E of ~23.5x. The bull case (25%) could see a re-test and breakout above the 52-week high of $693 toward $760. The bear case (15%) involves a pullback to the $485-$550 range if growth falters or the market corrects.
TDY appears to be fully valued or slightly overvalued based on traditional metrics. Its trailing P/E ratio of 27.35 and forward P/E of 23.54 are elevated. The PEG ratio of 3.29, which compares the P/E to the earnings growth rate, is particularly high and suggests the market is pricing in very optimistic future growth. While the company's premium positioning in niche markets justifies some multiple expansion, current levels leave little margin for error.
TDY is a high-quality stock, but its attractiveness as a new buy is currently limited. The company has strong fundamentals, including a 7.32% revenue growth rate and a low debt-to-equity ratio of 0.25. However, with a trailing P/E of 27.35 and a PEG ratio of 3.29, the valuation is demanding. Given the recent 11.17% price correction, investors may consider waiting for a more compelling entry point or signs of valuation stabilization.
TDY is more suitable for a long-term investment horizon. The company's competitive advantages in sensing and imaging technology, coupled with its financial strength, support a durable growth story. However, its high valuation and recent volatility make it a challenging short-term trade. Long-term investors can better weather the price fluctuations and benefit from the company's underlying business growth, while short-term traders face significant risk from the current technical correction and rich multiples.