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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
8.4%
Sector: -1.4%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, TELEDYNE TECHNOLOGIES INC (TDY) receives a "Hold" rating with a composite score of 50.8/100, ranked #1288 out of 4446 stocks. Key factor scores: Quality 50/100, Value 56/100, Momentum 59/100. This is quantitative analysis only — not investment advice.
TELEDYNE TECHNOLOGIES INC (TDY) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does TELEDYNE TECHNOLOGIES INC Do?
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. TELEDYNE TECHNOLOGIES INC (TDY) is classified as a large-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Robert Mehrabian and employs approximately 14,700 people, headquartered in Dover, California. With a market capitalization of $28.6B, TDY is one of the prominent companies in the Technology sector.
TELEDYNE TECHNOLOGIES INC (TDY) Stock Rating — Hold (April 2026)
As of April 2026, TELEDYNE TECHNOLOGIES INC receives a Hold rating with a composite score of 50.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.TDY ranks #1,288 out of 4,446 stocks in our coverage universe. Within the Technology sector, TELEDYNE TECHNOLOGIES INC ranks #139 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
TDY Stock Price and 52-Week Range
TELEDYNE TECHNOLOGIES INC (TDY) currently trades at $645.74. The stock lost $9.24 (1.4%) in the most recent trading session. The 52-week high for TDY is $693.38, which means the stock is currently trading -6.9% from its annual peak. The 52-week low is $419.00, putting the stock 54.1% above its annual trough. Recent trading volume was 295K shares, suggesting relatively thin trading activity.
Is TDY Overvalued or Undervalued? — Valuation Analysis
TELEDYNE TECHNOLOGIES INC (TDY) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 33.34x, compared to the Technology sector average of 45.27x — a discount of 26%. The price-to-book ratio stands at 2.80x, versus the sector average of 3.16x. The price-to-sales ratio is 4.95x, compared to 1.06x for the average Technology stock. On an enterprise value basis, TDY trades at 22.46x EV/EBITDA, versus 12.79x for the sector.
Overall, TDY's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
TELEDYNE TECHNOLOGIES INC Profitability — ROE, Margins, and Quality Score
TELEDYNE TECHNOLOGIES INC (TDY) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 8.4%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 5.8% versus the sector average of -1.0%.
On a margin basis, TELEDYNE TECHNOLOGIES INC reports gross margins of 42.8%, compared to 50.9% for the sector. The operating margin is 18.3% (sector: -0.5%). Net profit margin stands at 14.9%, versus -1.5% for the average Technology stock. Revenue growth is running at 12.0% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
TDY Debt, Balance Sheet, and Financial Health
TELEDYNE TECHNOLOGIES INC has a debt-to-equity ratio of 24.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.64x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2.48B. Cash and equivalents stand at $529M.
TDY has a beta of 0.85, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for TELEDYNE TECHNOLOGIES INC is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
TELEDYNE TECHNOLOGIES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, TELEDYNE TECHNOLOGIES INC reported revenue of $5.95B and earnings per share (EPS) of $19.12. Net income for the quarter was $882M. Gross margin was 42.8%. Operating income came in at $1.09B.
In FY 2025, TELEDYNE TECHNOLOGIES INC reported revenue of $6.12B and earnings per share (EPS) of $19.12. Net income for the quarter was $896M. Gross margin was 42.8%. Revenue grew 7.9% year-over-year compared to FY 2024. Operating income came in at $1.15B.
In Q3 2025, TELEDYNE TECHNOLOGIES INC reported revenue of $1.54B and earnings per share (EPS) of $4.71. Net income for the quarter was $221M. Gross margin was 42.8%. Revenue grew 6.7% year-over-year compared to Q3 2024. Operating income came in at $283M.
In Q2 2025, TELEDYNE TECHNOLOGIES INC reported revenue of $1.51B and earnings per share (EPS) of $4.48. Net income for the quarter was $210M. Gross margin was 42.6%. Revenue grew 10.2% year-over-year compared to Q2 2024. Operating income came in at $278M.
Over the past 8 quarters, TELEDYNE TECHNOLOGIES INC has demonstrated a growth trajectory, with revenue expanding from $1.37B to $5.95B. Investors analyzing TDY stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
TDY Dividend Yield and Income Analysis
TELEDYNE TECHNOLOGIES INC (TDY) does not currently pay a dividend. This is common among growth-oriented companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
TDY Momentum and Technical Analysis Profile
TELEDYNE TECHNOLOGIES INC (TDY) has a momentum factor score of 59/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
TDY vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, TELEDYNE TECHNOLOGIES INC (TDY) ranks #139 out of 584 stocks based on the Blank Capital composite score. This places TDY in the top quartile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing TDY against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full TDY vs S&P 500 (SPY) comparison to assess how TELEDYNE TECHNOLOGIES INC stacks up against the broader market across all factor dimensions.
TDY Next Earnings Date
No upcoming earnings date has been announced for TELEDYNE TECHNOLOGIES INC (TDY) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy TDY? — Investment Thesis Summary
TELEDYNE TECHNOLOGIES INC presents a balanced picture with arguments on both sides. Low volatility (stability score 80/100) reduces downside risk.
In summary, TELEDYNE TECHNOLOGIES INC (TDY) earns a Hold rating with a composite score of 50.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on TDY stock.
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Institutional Research Dossier
TELEDYNE TECHNOLOGIES INC (TDY) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Teledyne Technologies (TDY). While the company exhibits strong profitability and stability, its high valuation and negative free cash flow raise concerns. The company's diverse portfolio of enabling technologies and consistent operating margins are positives, but these are offset by a high price-to-earnings ratio relative to the sector and a significant outflow of free cash.
Teledyne's strategic focus on industrial growth markets and its history of successful acquisitions have contributed to its growth. However, the current valuation appears to already reflect these strengths, leaving limited upside potential. The company's ability to generate positive free cash flow in the future will be a key factor in determining its long-term investment appeal.
Business Strategy & Overview
Teledyne Technologies operates as a diversified industrial conglomerate, providing enabling technologies for various end markets, including aerospace and defense, digital imaging, instrumentation, and engineered systems. The company's strategy revolves around acquiring and integrating businesses with complementary technologies and strong market positions. This approach allows Teledyne to expand its product offerings, enter new markets, and achieve economies of scale.
The company's four main segments are strategically aligned to capitalize on long-term growth trends. The Instrumentation segment focuses on monitoring and control instruments, benefiting from increasing demand for environmental monitoring and industrial automation. The Digital Imaging segment provides sensors and cameras for various applications, including machine vision, medical imaging, and scientific research. The Aerospace and Defense Electronics segment supplies electronic components and subsystems for aircraft and communication systems, driven by defense spending and advancements in wireless technology. The Engineered Systems segment offers systems engineering and manufacturing solutions for defense, space, and energy applications, benefiting from government contracts and investments in renewable energy.
Teledyne's business model relies on a combination of organic growth and acquisitions. The company invests in research and development to innovate new products and improve existing ones. It also actively seeks out acquisition targets that can enhance its technological capabilities and market presence. The company's decentralized organizational structure allows its individual business units to operate independently while still benefiting from the resources and expertise of the larger organization.
A key element of Teledyne's strategy is its focus on high-margin, niche markets. By targeting specialized applications and industries, the company can differentiate itself from competitors and command premium pricing. This approach has contributed to Teledyne's consistently high operating margins, which are significantly above the sector average. The company's ability to maintain its profitability in a competitive environment is a testament to its strong market position and technological expertise.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
12.0%
Sector: 14.2%
-15% VS SCTR
Economic Moat Analysis
Teledyne possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's intangible assets include proprietary technologies, patents, and brand reputation in specific niche markets. These assets provide a degree of competitive advantage by making it difficult for new entrants to replicate Teledyne's products and services. For example, its expertise in advanced imaging technologies and defense electronics creates barriers to entry for competitors lacking similar capabilities.
Switching costs also contribute to Teledyne's moat, particularly in its Aerospace and Defense Electronics and Engineered Systems segments. Customers in these industries often rely on Teledyne's products and services for critical applications, and the cost of switching to a different supplier can be significant. This is due to the need for extensive testing, validation, and integration with existing systems. The high switching costs provide Teledyne with a degree of pricing power and customer loyalty.
However, Teledyne's moat is not wide due to the presence of strong competitors in many of its markets. The company faces competition from larger, more diversified companies with greater resources, as well as smaller, more specialized firms with innovative technologies. The rapid pace of technological change also poses a threat to Teledyne's competitive advantage, as new technologies can quickly render existing products obsolete.
Furthermore, the company's reliance on government contracts in its Aerospace and Defense Electronics and Engineered Systems segments exposes it to political and regulatory risks. Changes in government spending priorities or regulations could negatively impact Teledyne's revenue and profitability. While the company has a strong track record of securing government contracts, there is no guarantee that it will continue to do so in the future.
The Quality score of 50/100 suggests that while Teledyne is profitable, its returns on capital are not exceptional compared to its peers. This further supports the assessment of a narrow moat, as a wide-moat company would typically exhibit higher and more consistent returns on invested capital.
Financial Health & Profitability
Teledyne's financial health presents a mixed picture. The company has demonstrated consistent revenue growth, with revenue increasing from $5.64 billion in FY2023 to $6.12 billion in FY2025. This growth is attributable to a combination of organic expansion and acquisitions. The company's gross margin has remained relatively stable at around 43%, while its operating margin has consistently been above 17%, indicating efficient cost management.
However, Teledyne's free cash flow generation is a concern. While FY2024 saw a healthy $1.13 billion in free cash flow, the latest TTM figure shows a significant outflow of -$500.74 million. This discrepancy warrants further investigation to determine the underlying causes and whether it is a temporary issue or a sign of a more fundamental problem. The lack of FCF data for several quarters makes it difficult to assess the trend accurately.
The company's balance sheet appears to be in reasonable shape. Teledyne has a current ratio of 1.64, indicating sufficient liquidity to meet its short-term obligations. The company's total debt of $2.48 billion is manageable, and its debt-to-equity ratio of 24.00 is lower than the sector average of 43.00. However, the company's cash balance of $528.60 million is relatively low compared to its debt load.
Compared to the sector, Teledyne exhibits superior profitability. Its ROE of 8.4% is significantly higher than the sector average of -1.5%, and its net margin of 14.9% is also much higher than the sector average of -1.5%. These figures suggest that Teledyne is a more efficient and profitable company than its peers. However, its revenue growth of 12.0% is slightly below the sector average of 14.0%, indicating that it is not growing as rapidly as some of its competitors.
The Investment score of 28/100 is concerning, suggesting that Teledyne's capital allocation and growth prospects are weak relative to its peers. This could be due to the company's recent acquisition activity, which may have temporarily depressed its returns on capital. The company's ability to improve its capital allocation and generate sustainable growth will be crucial for its long-term success.
Valuation Assessment
Teledyne's valuation appears stretched based on several metrics. The company's price-to-earnings (P/E) ratio of 32.2x is lower than the sector average of 45.3x, but this does not necessarily indicate undervaluation. Given the company's relatively modest revenue growth and negative free cash flow, a lower P/E ratio may be justified. The EV/EBITDA ratio of 5.2x is significantly lower than the sector average of 13.0x, which might suggest undervaluation. However, this metric should be viewed with caution, given the company's negative free cash flow.
The company's negative free cash flow yield is a significant concern. A positive free cash flow yield is generally considered a sign of a healthy and undervalued company, while a negative yield suggests that the company is not generating enough cash to cover its investments and debt obligations. This could be a temporary issue related to recent acquisitions or investments, but it warrants close monitoring.
The Value score of 57/100 suggests that Teledyne's valuation is roughly in line with its peers. This score is based on a variety of valuation metrics, including P/E, EV/EBITDA, and price-to-book. However, it is important to note that these metrics are backward-looking and may not fully reflect the company's future growth prospects.
Given Teledyne's high valuation and negative free cash flow, the stock appears to be fairly priced at best. While the company has a strong track record of growth and profitability, its current valuation already reflects these strengths. Investors may be better off waiting for a pullback in the stock price or an improvement in the company's free cash flow generation before investing.
Risk & Uncertainty
Several risks and uncertainties could negatively impact Teledyne's business and financial performance. One of the primary risks is the company's reliance on government contracts, particularly in its Aerospace and Defense Electronics and Engineered Systems segments. Changes in government spending priorities or regulations could significantly reduce Teledyne's revenue and profitability. The cyclical nature of the defense industry also poses a risk, as demand for military products and services can fluctuate depending on geopolitical events and government budgets.
Another risk is the company's acquisition strategy. While acquisitions have been a key driver of Teledyne's growth, they also carry integration risks. Integrating acquired businesses can be challenging and time-consuming, and there is no guarantee that the company will be able to successfully integrate all of its acquisitions. Overpaying for acquisitions or failing to achieve expected synergies could negatively impact Teledyne's financial performance.
The company also faces competition from larger, more diversified companies with greater resources, as well as smaller, more specialized firms with innovative technologies. The rapid pace of technological change poses a threat to Teledyne's competitive advantage, as new technologies can quickly render existing products obsolete. The company must continue to invest in research and development to stay ahead of the competition and maintain its market position.
The high short interest score of 14/100 suggests that there is significant skepticism among investors regarding Teledyne's prospects. This could be due to concerns about the company's valuation, free cash flow generation, or competitive position. While a high short interest score does not necessarily indicate that a stock is overvalued, it is a warning sign that investors should be aware of.
Bulls Say / Bears Say
The Bull Case
BULL VIEWTeledyne's diverse portfolio of enabling technologies positions it to benefit from long-term growth trends in various end markets, including aerospace and defense, digital imaging, and instrumentation.
BULL VIEWThe company's consistent operating margins and strong profitability demonstrate its efficient cost management and ability to generate value for shareholders.
BULL VIEWTeledyne's history of successful acquisitions and integrations provides a proven track record of growth and value creation.
The Bear Case
BEAR VIEWTeledyne's high valuation and negative free cash flow suggest that the stock is overvalued and that its future growth prospects are already priced in.
BEAR VIEWThe company's reliance on government contracts exposes it to political and regulatory risks, as well as the cyclical nature of the defense industry.
BEAR VIEWTeledyne's acquisition strategy carries integration risks, and there is no guarantee that the company will be able to successfully integrate all of its acquisitions and achieve expected synergies.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score TDY and 4,400+ other equities.
TELEDYNE TECHNOLOGIES INC exhibits a 101% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.8%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
42.8%
Sector: 50.9%
Operating Margin
Core business profitability
18.3%
Sector: -0.5%
Net Margin
Bottom-line profitability
14.9%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
