Teledyne Technologies Incorporated TDY
Verdict: Strong sell. Fair value $463 against a price of $533 on 6 Jan 2026, 13% below the price.
In plain words
The case for: Narrow competitive moat provides durability. Industry tailwinds with growing market.
The case against: Macro headwinds could impact growth. Valuation multiple compression risk.
Main risks
- Significant revenue growth deceleration in annual data, slowing from 18.4% in FY22 to just 0.5% in FY24.
- Declining annual net income ($0.89B in 2023 to $0.82B in 2024) despite a slight revenue increase, indicating margin pressure.
- Low return on invested capital (ROIC estimated at 5.3%), which is likely below the company's cost of capital, questioning the efficiency of its large capital base.
- Valuation prices in optimistic scenario (limited margin for error)
- Overhang: A recent $1.5 million settlement related to US Military Parts Allegations. While a negativ...
- Market volatility