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1. Company Snapshot

1.a. Company Description

Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets in the United States, Canada, the United Kingdom, Belgium, the Netherlands, and internationally.The company's Instrumentation segment offers monitoring and control instruments for marine, environmental, industrial, and other applications, as well as electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks.Its Digital Imaging segment provides visible spectrum sensors and digital cameras for industrial machine vision and automated quality control, as well as for medical, research, and scientific applications; and infrared and X-ray spectra for use in industrial, government, and medical applications, as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters.


This segment also offers thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions.The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, as well as communications products, such as defense electronics, environment interconnects, data acquisition and communications equipment for aircraft, components and subsystems for wireless and satellite communications, and general aviation batteries.Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications.


The company markets and sells its products and services through a direct internal sales force, as well as third-party sales representatives and distributors.Teledyne Technologies Incorporated was founded in 1960 and is headquartered in Thousand Oaks, California.

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1.b. Last Insights on TDY

Teledyne Technologies' recent performance was negatively impacted by concerns over international revenue trends and their effects on Wall Street's forecasts. Despite beating earnings estimates with Q3 earnings of $5.57 per share, the company's growth prospects are being examined. The company's strong defense electronics segment drove year-over-year growth, but mature markets may limit organic growth. CEO George C. Bobb III's sale of 6,735 shares worth $3.7 million may have raised some eyebrows. Analysts are revising their forecasts, and the company's valuation is being reassessed.

1.c. Company Highlights

2. Teledyne's Q3 Earnings: A Strong Performance Driven by Defense-Related Businesses

Teledyne's third-quarter sales reached a record $6.07 billion, a 6.7% increase from last year, driven by growth in its defense-related businesses. Non-GAAP earnings per share rose 9.2% to $5.57, beating estimates of $5.5, and free cash flow hit a record $314 million. The company's strong financial performance was largely driven by its Aerospace and Defense Electronics segment, which jumped 37.6% primarily due to acquisitions and organic growth in defense electronics.

Publication Date: Oct -25

📋 Highlights
  • Record Q3 Sales:: Teledyne's third-quarter sales reached $6.07 billion, a 6.7% increase YoY, driven by defense-related businesses.
  • Non-GAAP Earnings Growth:: Non-GAAP EPS rose 9.2%, with free cash flow hitting a record $314 million.
  • Defense Segment Surge:: Aerospace and Defense Electronics sales jumped 37.6% YoY, fueled by acquisitions and organic growth.
  • Full-Year Outlook Raised:: Sales guidance increased to $6.06 billion, with defense acquisitions and geopolitical demand supporting growth.
  • 2025 Earnings Guidance:: Full-year non-GAAP EPS forecasted between $21.45 and $21.60, reflecting margin improvements and defense/unmanned systems growth.

Segmental Performance

The Digital Imaging segment saw a 2.2% sales increase, with Teledyne FLIR's growth offsetting weakness in X-ray detectors. The Instrumentation segment grew 3.9%, driven by marine instruments and environmental instruments. The Aerospace and Defense Electronics segment was the standout performer, with a significant increase in sales. The Engineered Systems segment also saw a strong book-to-bill ratio of over 2x.

Growth Prospects

Teledyne expects its defense business to grow, driven by geopolitical tensions and increased defense spending in Europe. The company has a strong presence in Europe, with 5,100 employees, and expects to increase its revenue in the region. Its unmanned systems business, including drones, is also growing, with a current revenue run rate of $500 million, expected to increase over the next few years. The company is also investing in R&D, particularly in areas such as sensors, infrared systems, and protocol analyzers.

Valuation and Outlook

Teledyne's valuation metrics indicate a relatively high P/E Ratio of 29.05, suggesting that the market has already priced in some of the company's growth prospects. However, the company's ROE of 8.5% and ROIC of 6.76% indicate a strong ability to generate returns on equity and invested capital. With a Free Cash Flow Yield of 3.82%, Teledyne's shares may offer an attractive return for investors. Analysts estimate next year's revenue growth at 5.2%, which could provide further momentum for the stock.

3. NewsRoom

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Teledyne to Participate in the Goldman Sachs Industrials Conference

Dec -03

Source: businesswire.com

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Head-To-Head Review: Teledyne Technologies (NYSE:TDY) versus Rolls-Royce Holdings PLC (OTCMKTS:RYCEY)

Dec -02

Source: defenseworld.net

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Teledyne MEMS Welcomes Strategic Investment in C2MI

Dec -01

Source: businesswire.com

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Teledyne Technologies Incorporated $TDY Stock Position Lifted by Advisors Asset Management Inc.

Nov -28

Source: defenseworld.net

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AXQ Capital LP Takes $245,000 Position in Teledyne Technologies Incorporated $TDY

Nov -25

Source: defenseworld.net

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Teledyne Technologies Incorporated (NYSE:TDY) Receives Average Rating of “Moderate Buy” from Analysts

Nov -25

Source: defenseworld.net

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Avantax Advisory Services Inc. Has $1.99 Million Stock Position in Teledyne Technologies Incorporated $TDY

Nov -22

Source: defenseworld.net

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Bank Julius Baer & Co. Ltd Zurich Trims Holdings in Teledyne Technologies Incorporated $TDY

Nov -22

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.94%)

6. Segments

Digital Imaging

Expected Growth: 3%

Teledyne Technologies' Digital Imaging segment growth is driven by increasing demand for high-performance cameras in industrial automation, machine vision, and medical imaging. Additionally, growing adoption of AI and computer vision in various industries fuels demand for Teledyne's advanced imaging solutions, contributing to a growth rate of 3.

Instrumentation

Expected Growth: 5%

Teledyne Technologies' instrumentation segment growth is driven by increasing demand for marine and environmental sensors, expansion in oil and gas exploration, and growing adoption of autonomous underwater vehicles. Additionally, the company's focus on innovation, strategic acquisitions, and strong relationships with government and commercial customers contribute to its growth.

Aerospace and Defense Electronics

Expected Growth: 6%

Teledyne Technologies' Aerospace and Defense Electronics segment growth is driven by increasing demand for advanced electronic systems in military and space applications, rising adoption of unmanned aerial vehicles (UAVs), and growing need for cybersecurity solutions. Additionally, the company's focus on research and development, strategic acquisitions, and expanding presence in emerging markets contribute to its 6% growth.

Engineered Systems

Expected Growth: 4%

Teledyne Technologies' Engineered Systems segment growth is driven by increasing demand for advanced electronic components in aerospace and defense, rising adoption of unmanned underwater vehicles, and growing need for sophisticated sensors and subsea systems in the oil and gas industry, as well as expanding presence in emerging markets.

7. Detailed Products

Marine Instrumentation

Teledyne Marine provides a range of marine instrumentation products, including acoustic Doppler current profilers, acoustic releases, and underwater gliders.

Electronic Test and Instrumentation

Teledyne LeCroy offers a range of electronic test and instrumentation products, including oscilloscopes, protocol analyzers, and signal generators.

Aerospace and Defense Electronics

Teledyne e2v provides a range of aerospace and defense electronics products, including semiconductors, microwave devices, and radiation-hardened components.

Digital Imaging

Teledyne DALSA and Teledyne Princeton Instruments provide a range of digital imaging products, including cameras, sensors, and software.

Environmental Monitoring

Teledyne ISCO and Teledyne YSI provide a range of environmental monitoring products, including water and wastewater samplers, and environmental monitoring systems.

8. Teledyne Technologies Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Teledyne Technologies Incorporated operates in a niche market with high barriers to entry, reducing the threat of substitutes.

Bargaining Power Of Customers

Teledyne Technologies Incorporated has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

Teledyne Technologies Incorporated has a moderate level of dependence on its suppliers, but has implemented strategies to mitigate supply chain risks.

Threat Of New Entrants

Teledyne Technologies Incorporated operates in a highly regulated industry with high barriers to entry, reducing the threat of new entrants.

Intensity Of Rivalry

Teledyne Technologies Incorporated operates in a highly competitive industry with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.21%
Debt Cost 3.95%
Equity Weight 73.79%
Equity Cost 9.09%
WACC 7.74%
Leverage 35.52%

11. Quality Control: Teledyne Technologies Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Teledyne Technologies

A-Score: 5.7/10

Value: 2.8

Growth: 6.3

Quality: 6.9

Yield: 0.0

Momentum: 8.0

Volatility: 10.0

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ESCO Technologies

A-Score: 5.1/10

Value: 1.6

Growth: 6.1

Quality: 5.9

Yield: 0.0

Momentum: 9.5

Volatility: 7.7

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Vontier

A-Score: 5.0/10

Value: 4.9

Growth: 3.8

Quality: 6.3

Yield: 0.0

Momentum: 7.5

Volatility: 7.3

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Sanmina

A-Score: 4.7/10

Value: 4.2

Growth: 5.0

Quality: 5.6

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

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Plexus

A-Score: 4.4/10

Value: 3.6

Growth: 4.7

Quality: 5.6

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

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Littelfuse

A-Score: 4.2/10

Value: 2.7

Growth: 4.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

522.3$

Current Price

522.3$

Potential

-0.00%

Expected Cash-Flows