Price to Operating Profit (P/OP)
since 2005
Calculation
Teradyne Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income (loss) from operations1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2024 | 31.31 | = | 102.48 | ÷ | 3.27 | 3.27 | = | 501,068 | ÷ | 153,080,607 | |
| Feb 22, 2023 | 18.90 | = | 100.77 | ÷ | 5.33 | 5.33 | = | 831,939 | ÷ | 156,047,868 | |
| Feb 23, 2022 | 15.08 | = | 111.52 | ÷ | 7.39 | 7.39 | = | 1,200,720 | ÷ | 162,417,046 | |
| Feb 22, 2021 | 23.77 | = | 132.39 | ÷ | 5.57 | 5.57 | = | 928,407 | ÷ | 166,694,772 | |
| Mar 2, 2020 | 18.22 | = | 60.49 | ÷ | 3.32 | 3.32 | = | 553,654 | ÷ | 166,784,497 | |
| Mar 1, 2019 | 15.03 | = | 41.00 | ÷ | 2.73 | 2.73 | = | 473,797 | ÷ | 173,629,283 | |
| Mar 1, 2018 | 16.55 | = | 44.90 | ÷ | 2.71 | 2.71 | = | 530,028 | ÷ | 195,422,673 | |
| Mar 1, 2017 | — | = | 29.07 | ÷ | -0.30 | -0.30 | = | -60,015 | ÷ | 200,302,178 | |
| Feb 29, 2016 | 16.05 | = | 19.08 | ÷ | 1.19 | 1.19 | = | 242,969 | ÷ | 204,336,493 | |
| Feb 27, 2015 | 43.64 | = | 19.32 | ÷ | 0.44 | 0.44 | = | 96,423 | ÷ | 217,783,809 | |
| Feb 28, 2014 | 20.63 | = | 20.28 | ÷ | 0.98 | 0.98 | = | 190,659 | ÷ | 193,977,544 | |
| Mar 1, 2013 | 11.01 | = | 16.62 | ÷ | 1.51 | 1.51 | = | 287,368 | ÷ | 190,315,020 | |
| Feb 29, 2012 | 12.99 | = | 16.42 | ÷ | 1.26 | 1.26 | = | 235,714 | ÷ | 186,457,258 | |
| Mar 1, 2011 | 8.15 | = | 18.19 | ÷ | 2.23 | 2.23 | = | 413,468 | ÷ | 185,346,619 | |
| Mar 1, 2010 | — | = | 10.39 | ÷ | -0.69 | -0.69 | = | -122,421 | ÷ | 177,237,096 | |
| Mar 2, 2009 | — | = | 3.93 | ÷ | -2.23 | -2.23 | = | -384,347 | ÷ | 172,696,518 | |
| Feb 28, 2008 | 50.64 | = | 12.26 | ÷ | 0.24 | 0.24 | = | 42,207 | ÷ | 174,344,112 | |
| Mar 1, 2007 | 15.44 | = | 16.01 | ÷ | 1.04 | 1.04 | = | 196,831 | ÷ | 189,763,454 | |
| Mar 14, 2006 | — | = | 15.88 | ÷ | -0.41 | -0.41 | = | -81,698 | ÷ | 198,096,049 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Teradyne Inc. Annual Report.
The financial trajectory from 2006 to 2024 reveals a highly cyclical relationship between market valuation and operational profitability. A general long-term increase in share price is evident, though this growth has been punctuated by significant volatility in operating performance.
- Share Price Evolution
- The share price experienced a severe decline reaching a low of 3.93 USD in 2009. Following this trough, a sustained recovery occurred, accelerating sharply between 2020 and 2021 to a peak of 132.39 USD. In the subsequent three years, the price stabilized, consolidating in the range of 100.77 USD to 111.52 USD.
- Operating Profit Performance
- Operating profit per share has exhibited substantial instability, with negative values recorded in 2006, 2009, 2010, and 2017. Profitability peaked in 2022 at 7.39 USD per share. However, a recent contraction is observed, with profit per share declining to 3.27 USD by February 2024.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio demonstrates extreme fluctuations, often reflecting periods of profit compression relative to market price. Valuation spikes are prominent in 2008 (50.64) and 2015 (43.64), indicating the market maintained high price expectations despite low operating returns. Between 2018 and 2023, the ratio remained relatively contained, fluctuating between 15.03 and 23.77. A recent upward shift to 31.31 in 2024 suggests a widening gap between the share price and current operating efficiency.
The correlation between the P/OP ratio and operating profit indicates that the valuation often expands when profits dip, provided the share price remains resilient. The most recent data points suggest a valuation expansion driven by a decrease in operating profit rather than an increase in share price.
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Comparison to Competitors
Teradyne Inc., P/OP, long-term trends, comparison to competitors
| Teradyne Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2024 | 31.31 | 675.69 | 23.53 | 17.58 | 31.96 | 1,984.43 | 16.79 | 147.29 | — | 136.19 | 15.85 | 19.75 |
| Feb 22, 2023 | 18.90 | 100.42 | 26.16 | 11.35 | 16.33 | 49.91 | 11.79 | — | 5.93 | 66.12 | 7.95 | 16.29 |
| Feb 23, 2022 | 15.08 | 39.48 | 56.12 | 18.85 | 30.78 | 10.82 | 18.34 | — | 12.48 | 75.08 | 15.84 | 17.67 |
| Feb 22, 2021 | 23.77 | 75.77 | 33.76 | 18.50 | 44.04 | 9.72 | 20.40 | — | 19.51 | 66.40 | 23.32 | 26.53 |
| Mar 2, 2020 | 18.22 | 91.66 | 24.74 | 16.36 | 36.85 | 13.29 | 12.13 | 295.81 | 6.83 | 24.79 | 12.60 | 21.46 |
| Mar 1, 2019 | 15.03 | 51.38 | 17.62 | 6.74 | 19.42 | 9.40 | 8.67 | 24.26 | 3.20 | 45.61 | 103.26 | 15.00 |
| Mar 1, 2018 | 16.55 | 59.52 | 30.97 | 14.35 | 44.92 | 11.86 | 13.68 | 78.88 | 7.98 | 31.31 | 30.15 | 16.81 |
| Mar 1, 2017 | — | — | 21.85 | 16.54 | — | 13.40 | 13.46 | — | 106.63 | 23.80 | 15.26 | 16.07 |
| Feb 29, 2016 | 16.05 | — | 22.69 | 12.92 | 23.80 | 9.66 | 14.45 | 18.85 | 6.04 | 16.52 | 15.68 | 12.34 |
| Feb 27, 2015 | 43.64 | — | 23.01 | 19.66 | 59.05 | 10.60 | 16.98 | 27.46 | 11.23 | 19.66 | 17.00 | 15.64 |
| Feb 28, 2014 | 20.63 | 26.08 | 20.62 | 46.30 | 23.31 | 10.02 | 64.12 | 18.01 | 74.52 | 12.16 | 16.30 | 17.02 |
| Mar 1, 2013 | 11.01 | — | 14.67 | 31.47 | 13.51 | 7.13 | 26.84 | 15.14 | — | 14.06 | 17.43 | 19.14 |
| Feb 29, 2012 | 12.99 | 14.16 | 9.26 | 6.04 | 12.05 | 7.62 | 5.54 | 11.35 | 7.18 | 40.70 | 17.45 | 12.75 |
| Mar 1, 2011 | 8.15 | 7.42 | 11.93 | 12.82 | 13.69 | 7.79 | 10.92 | 39.12 | 4.84 | — | 22.51 | 9.25 |
| Mar 1, 2010 | — | 8.03 | 30.48 | — | 81.90 | 20.19 | — | 35.44 | — | — | 32.90 | 15.16 |
| Mar 2, 2009 | — | — | 7.90 | 10.25 | — | 7.50 | 9.41 | — | — | 13.27 | 14.67 | 8.01 |
| Feb 28, 2008 | 50.64 | — | 16.49 | 10.36 | — | 14.36 | 6.12 | 10,050.76 | — | 22.39 | 22.57 | 11.81 |
| Mar 1, 2007 | 15.44 | — | 20.89 | 12.54 | — | 21.27 | 14.39 | 46.71 | 30.18 | 24.63 | 22.34 | 13.27 |
| Mar 14, 2006 | — | 84.32 | 26.80 | 21.07 | — | 9.99 | 10.23 | 59.44 | 39.55 | 37.70 | 27.83 | 17.12 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-30), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).