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What this page is: Delvantic's full research page for Teledyne Technologies Incorporated (TDY) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.
Our current read (analysis of 2026-10-07): Designation Low · Gem Score -26 (−100…+100 Quality+Value blend) · Quality 51 · Value -78 · Sentiment 42 (timing only, not weighted) · Composite fair value $401.23 vs $633.56 at analysis
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Teledyne Technologies Incorporated
TDY NYSETeledyne Technologies Incorporated is an industrial technology company that designs and supplies advanced electronic systems, instruments, and imaging products. Teledyne serves a broad range of end markets through business segments that support aerospace and defense, marine systems, digital imaging, instrumentation, and engineered solutions. Its portfolio includes sensors, cameras, surveillance and monitoring systems, analytical instruments, and communication technologies used in demanding industrial, scientific, and mission-critical environments. The company also provides specialty components and software that help customers collect, analyze, and transmit data across land, sea, air, and space applications. Teledyne Technologies Incorporated plays an important role in markets where precision, reliability, and rugged performance are essential, supporting customers in government, commercial, and industrial sectors.
Price Overview
Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 18.88
Total Equity: $10.51B
Shares: 47,400,000
Total Debt: $2.48B
Cash: $352.40M
EBITDA: $1.49B
Total Debt: $2.48B
Cash: $352.40M
Revenue: $6.12B
Revenue: $6.12B
Revenue: $6.12B
Total Equity: $10.51B
Tax Rate: 18.2%
Equity: $10.51B
Total Debt: $2.48B
Cash: $352.40M
Current Liabilities: $1.86B
Long-Term Debt: $2.03B
Total Debt: $2.48B
Total Equity: $10.51B
Shares: 47,400,000
Shares: 47,400,000
CapEx: -$117.30M
Shares: 47,400,000
Stock Price: $633.56
Net Income: $894.80M
Industry Benchmarks
Income Statement (Annual)
Last updated: Aug 27, 2026 6:33am (41d ago)| Metric | 2022 | 2023 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.6B | $5.5B | $5.6B | $5.7B | $6.1B |
| Cost of Revenue | $2.8B | $3.1B | $3.2B | $3.2B | $3.5B |
| Gross Profit | $1.8B | $2.3B | $2.4B | $2.4B | $2.6B |
| Operating Expenses | $1.2B | $1.4B | $1.4B | $1.4B | $1.5B |
| Operating Income | $624.3M | $972.0M | $1.0B | $989.1M | $1.1B |
| Net Income | $445.3M | $788.6M | $885.7M | $819.2M | $894.8M |
| EBITDA | $996.1M | $1.3B | $1.4B | $1.3B | $1.5B |
| EPS | $10.31 | $16.85 | $18.80 | $17.43 | $19.12 |
| EPS (Diluted) | $10.05 | $16.53 | $18.49 | $17.21 | $18.88 |
Balance Sheet (Annual)
Last updated: Aug 27, 2026 4:00am (41d ago)| Metric | 2022 | 2023 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $474.7M | $638.1M | $648.3M | $649.8M | $352.4M |
| Total Current Assets | $2.4B | $2.8B | $3.0B | $2.9B | $3.1B |
| Total Assets | $14.4B | $14.4B | $14.5B | $14.2B | $15.3B |
| Current Liabilities | $1.5B | $1.5B | $1.8B | $1.3B | $1.9B |
| Long-Term Debt | $4.1B | $3.6B | $2.6B | $2.6B | $2.0B |
| Total Liabilities | $6.8B | $6.2B | $5.3B | $4.6B | $4.8B |
| Total Equity | $7.6B | $8.2B | $9.2B | $9.6B | $10.5B |
| Retained Earnings | $3.8B | $4.6B | $5.4B | $6.3B | $7.1B |
Cash Flow (Annual)
Last updated: Aug 27, 2026 6:33am (41d ago)| Metric | 2022 | 2023 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $824.6M | $486.8M | $836.1M | $1.2B | $1.2B |
| Capital Expenditure | -$101.6M | -$92.6M | -$114.9M | -$83.7M | -$117.3M |
| Free Cash Flow | $723.0M | $394.2M | $721.2M | $1.1B | $1.1B |
| Acquisitions (net) | -$3.7B | -$99.6M | -$77.7M | -$123.7M | -$821.4M |
| Net Debt Issued / (Repaid) | $4.0B | -$185.0M | $0 | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | — | $0 | $0 | -$354.0M | -$402.9M |
| Net Change in Cash | -$198.4M | $163.4M | $10.2M | $1.5M | -$297.4M |
Growth Trends (YoY %)
Last updated: Aug 27, 2026 6:33am (41d ago)| Metric | 2023 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +18.3% | +3.2% | +0.6% | +7.9% |
| Gross Profit Growth | +26.6% | +4.7% | -0.2% | +7.4% |
| Operating Income Growth | +55.7% | +6.4% | -4.4% | +16.2% |
| Net Income Growth | +77.1% | +12.3% | -7.5% | +9.2% |
| EBITDA Growth | +30.9% | +3.6% | -3.8% | +14.4% |
Dividend History (Last 20)
Last updated: Aug 20, 2026 7:19am (48d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 1996-08-06 | $0.31 | — | — | — |
| 1996-05-06 | $0.31 | — | — | — |
| 1996-03-07 | $0.13 | — | — | — |
| 1996-02-15 | $0.10 | — | — | — |
| 1995-11-02 | $0.10 | — | — | — |
| 1995-08-17 | $0.10 | — | — | — |
| 1995-05-02 | $0.10 | — | — | — |
Deep Analysis
Risk : Reward — upside vs downside from this company's own quarters
Computed 2026-10-05 02:01A +1σ run of quarters pays -52%; a −1σ run costs 68%. Ratio -0.8:1 (μ 6.8%, σ 4.3% floored by sector, 16 pairs).
Older method (repeat-worst-quarter): -0.8 : 1
| Case | Growth | Margin | Fair value | vs price ($633.56) |
|---|---|---|---|---|
| Bull — recovery | +12% | 17.6% | $322.29 | -49% |
| Base — stabilizes | +8% | 15.3% | $251.06 | -60% |
| Bear — keeps slipping | +4% | 13.0% | $191.93 | -70% |
| Stress — last quarter repeats | +7% | 15.0% | $236.66 | -63% |
| Upside — a +1σ run of quarters (v2) | +11% | 16.8% | $301.17 | -52% |
| Stress — a −1σ run of quarters (v2) | +3% | 14.8% | $204.94 | -68% |
Narrative Economics
market-narrative step).
Growth Outlook
Analyzed 2026-08-27 06:43The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.
Claude Reading
Looking at the raw quarterly tape first: revenue has moved $1.44B → $1.50B → $1.45B → $1.51B → $1.54B → $1.61B → $1.56B → $1.66B over eight quarters — that's roughly 15% cumulative, or ~7-8% annualized, better than the 4.2% five-year CAGR suggests. Net income is choppier ($262M in Q3'24 was an outlier high; $188M in Q1'25 the low), but the four most recent quarters run $220-276M vs $189-262M in the prior four — real, if modest, earnings growth. Operating margin at 18.8% and gross at 42.8% are respectable for a diversified instruments/sensors business but not extraordinary. ROE of 8.5% and ROIC of 7.45% are the numbers that should stop any bull cold: this is not an 18-20% ROIC compounder, full stop. The $10.5B equity base against $895M net income tells you goodwill from the FLIR/e2v/etc. deals is doing heavy lifting and returns on that invested capital are mediocre.
The synthesis's $288-300 fair value looks directionally right but probably too harsh. At $633 the stock trades at 33x earnings, 5.2x EV/sales, 21x EV/EBITDA, and ~27x FCF ($1.07B / $29.4B mcap). For a business growing revenue 7-8%, earnings ~9%, with 7.5% ROIC, a fair multiple is probably 18-22x earnings — call it $475-540, or 15-25% downside, not 53%. The DCF's $300 print likely assumes reversion to 3-4% growth and no terminal M&A value; that's punitive for a company that has demonstrated capital deployment capability, even at mediocre incremental returns. So I partially dissent from the synthesis magnitude while agreeing on direction.
The narrative layer nails the actual disconnect: this is priced as a platform monopoly but operates as a bolt-on aggregator with sub-cost-of-capital ROIC on incremental deals (7.5% ROIC vs likely 8-9% WACC). The bull case requires either (a) defense budget acceleration flowing to FLIR/sensor content — plausible but already partially priced across the whole A&D complex, or (b) a step-function M&A deal that re-rates the story. The bear case's weakness is that FCF is genuinely strong ($1.07B, 22% CAGR) and the balance sheet is clean (debt/equity 0.24, current ratio 1.64), so the downside is bounded — this isn't a blow-up candidate, it's a multiple-compression candidate. Insider selling of ~7,000 shares total is noise, not signal; ignore it. The "decelerating quarterly trend" tag in revenue confidence is wrong — sequential growth just accelerated from +2% to +6%.
Contrarian pushback worth taking seriously: TDY's aerospace/defense exposure (roughly half of revenue via FLIR Defense and Aerospace & Defense Electronics) is entering a genuinely favorable multi-year cycle — Ukraine restocking, drone/counter-drone, space ISR. The 7.5% ROIC understates the incremental economics because it's dragged by legacy goodwill; new organic and small bolt-on capital may earn substantially more. If organic growth inflects to 8-10% for 2-3 years with 100-150bps of margin expansion, EPS could compound low-teens and today's 33x becomes tomorrow's 22x without a price change. That's the bull case that keeps me from full dissent — but it requires believing something not yet in the numbers. My verdict: overvalued, but not by 53%. Fair value $500-550, current $633 embeds ~15-25% of narrative premium that could persist if defense tape stays hot. I'd trim, not short; I wouldn't buy here without a 15%+ pullback or a Q3/Q4 revenue print confirming 8%+ organic.
GPT Reading
The raw numbers say Teledyne is a very good business, but not a $634 stock. Revenue has grown from $4.61 billion in 2022 to $6.12 billion in 2025, a solid 10% annualized clip over that span, yet the more recent cadence is plainly slower: 2024 to 2025 revenue rose 8.0%, and the quarterly run-rate from $1.45 billion in March 2025 to $1.66 billion in June 2026 is healthy but not explosive. Profitability is respectable rather than exceptional. Annual operating income was $1.15 billion on $6.12 billion of sales in 2025, an 18.8% operating margin, while net income was $894.8 million, only modestly above the $885.7 million posted in 2023. That is the key tension here: sales keep edging up, but earnings are not compounding nearly fast enough to justify a 33.6x P/E and 21.4x EV/EBITDA multiple.
The cash flow profile is the best part of the story. Teledyne produced $1.19 billion of operating cash flow and $1.07 billion of free cash flow in 2025, with capex only $117.3 million. On the surface that supports the quality premium. Balance sheet risk is also contained: $2.48 billion of debt against $352 million of cash and $10.5 billion of equity is not stretched, and a 1.64 current ratio gives the company room. But even here, the valuation asks too much. At a $29.4 billion market cap, that $1.07 billion of FCF is only about a 3.6% FCF yield. That can work for a business with clearly superior returns and durable double-digit organic growth; Teledyne instead shows 7.5% ROIC and 8.5% ROE, both good enough for a stable compounder but nowhere near the kind of capital efficiency that should command such a steep premium. The market is paying up as if this were a uniquely advantaged platform; the accounting reality looks more like a disciplined, diversified instrument company with decent, not elite, economics.
The quarterly margin pattern reinforces that caution. Net margin moved from 13.0% in March 2025 to 13.9% in June 2025, 14.3% in September 2025, then spiked to 17.1% in December before slipping back to 14.5% and 15.1% in the first half of 2026. That is improvement, but it is not a clean step-function re-rating in underlying earnings power. If I annualize the first half of 2026, Teledyne is running near $6.4-6.5 billion in revenue and roughly $950-960 million in net income. That implies the stock is still around 30x forward earnings even on favorable extrapolation. For a company with a long-term earnings CAGR of just 0.5% in the supplied data and recent revenue growth under 8%, that is simply too rich. I think the stock deserves a premium to generic industrials because of mix quality and cash generation, but a premium is different from a heroic multiple. A fairer range is closer to 22-26x earnings, which on roughly $20-21 of forward EPS points to something like $450-540, not $634.
The best argument against this bearish valuation read is that Teledyne’s business quality is better than the blunt ratios imply. Gross margin of 42.8% and operating margin of 18.8% are strong for an instrumentation-heavy portfolio, and free cash conversion is excellent. Recent quarterly revenue growth of 7.9% and earnings growth of 9.2% suggest acceleration rather than stagnation, and if that pace is sustained while margins continue to lift from the mid-teens toward the high teens on a net basis, the market may be correctly sniffing out a better earnings trajectory than the annual history shows. There is also the possibility that serial acquisition economics are understated by reported ROIC because the company is carrying sizable acquired intangibles and amortization effects that depress accounting returns. If management can keep compounding via disciplined M&A while deleveraging naturally through $1 billion-plus annual FCF, a premium multiple is not irrational. I still weigh those positives less heavily because the current price already assumes that favorable path, leaving little room for ordinary execution.
What would change my mind is not another “good quarter”; it would be evidence of a genuine earnings power reset. If Teledyne can push annual revenue above $6.7 billion while taking operating margin above 20% and converting that into at least $1.1-1.2 billion of annual net income or sustained FCF well north of $1.2 billion, then today’s multiple would start to look less demanding. Conversely, if growth slips back toward 4-5% or margins stay around 14-15% net, I would expect the valuation premium to compress. The insider sales are not decisive on their own, but they do not help support the case that shares are obviously cheap at these levels.
Grok Reading
The raw numbers describe a high-quality but thoroughly mature industrial compounder, not the high-ROIC platform the multiple implies. Teledyne printed $6.12B in 2025 revenue with $894.8M of net income and $1.07B of free cash flow—real cash generation, low capex intensity ($117M), and a fortress balance sheet (debt/equity 0.24, $2.48B debt against $10.51B equity). Sequential quarters show steady low-to-mid single-digit expansion: trailing four-quarter run-rate is roughly $6.4B, recent revenue YoY +7.9%, and net margins have firmmed from the low-teens into the 14–17% band. That is respectable. What it is not is scarce. Revenue CAGR over the visible window is only 4.2%; earnings CAGR is essentially flat at 0.5%. ROIC sits at 7.45% and ROE at 8.5%—ordinary returns for a scientific-instruments roll-up. Paying 33.6× earnings, 21.4× EV/EBITDA and 4.9× sales for mid-single-digit growth and high-single-digit capital returns is the core disconnect. At $633 the market is capitalizing roughly $29B of enterprise value on a business whose DCF-consistent cash-flow profile supports something closer to half that.
The valuation models’ $300 fair-value anchor is directionally correct even if the precise number is debatable; the stock embeds a narrative premium of more than 100% over steady-state cash flows. FCF yield is only ~3.6% at the current price. Gross margin of 42.8% and operating margin of 18.8% are solid but not expanding fast enough to close that gap organically. Recent insider activity is uniformly sales. The “serial acquirer compounding machine” story only works if incremental deals clear well above the current 7–8% ROIC hurdle and if defense/autonomy budgets deliver durable organic acceleration—neither of which is visible in the trailing multi-year growth rates.
The strongest opposing case is straightforward: FCF has compounded at 22%, the balance sheet can fund further bolt-ons without stress, and the latest two quarters ($1.56B and $1.66B) plus 9% earnings growth hint at an inflection that sell-side defense narratives will gladly extrapolate. A buyer can argue that 33× is the clearing price for scarce, mission-critical sensor exposure with government tailwinds and that ROIC will rise as integration synergies mature. I weigh that lightly because the same story has already been paid for: the multiple already assumes the high-teens ROIC and 5–7% organic growth the bear narrative correctly flags as aspirational. Flat multi-year earnings CAGR and decelerating quarterly revenue confidence argue the inflection is not yet earned.
I would reverse course on a sustained print of organic revenue growth above 8% with ROIC pushing through 12%, or a clear multi-year defense budget step-up that lifts the order book without multiple compression. Until then the asymmetry sits with the short side of the narrative premium.
Big-3 Panel — where each AI stands
Advanced Analysis Forensic deep-dive · separate lenses
Teledyne shows the profile of a mature, well-run technical-instruments compounder. Revenue has grown from $4.61B (2022) to $6.12B (2025), gross margin expanded from 39.9% to 42.8%, and operating margin from 13.5% to 18.8% — real operating leverage, not accounting flattery. Net income scaled from $445M to $895M and FCF from $723M to $1.07B, with OCF/NI at 1.24x and accruals at -1% of assets, both indicating cash-backed earnings. Beneish M of -2.45 and Altman Z of 5.09 corroborate high earnings integrity. Capital discipline is intact: diluted shares crept from 44.3M to 47.4M (roughly 1.7% CAGR), so per-share value is not being eroded by SBC or issuance. The main constraint is the balance sheet: net debt of ~$2.12B against just $352M of liquid cash, and $450M of short-term debt exceeding cash on hand. With $1B+ of annual FCF this is easily serviceable, but it is a working constraint rather than a cushion. Insider activity is small, exercise-and-sell in character (five sales totaling ~$4.7M, no buys) — normal for a mature large-cap and not a directional signal. Overall the business reads as solidly healthy across profitability, cash conversion, and earnings quality, with leverage as the only real qualifier.
Verify before trusting this (5)
- Segment mix and organic vs acquired growth in the 10-K to gauge underlying durability of the margin expansion
- Debt maturity ladder and covenants — specifically the composition of the $450M short-term debt
- Customer/end-market concentration (defense, industrial, imaging) and any single-customer exposure
- SBC as % of revenue and buyback activity vs issuance to confirm the low share-count growth is not masked by repurchases funding SBC
- Acquisition cadence and goodwill/intangibles roll-forward given Teledyne's serial-acquirer history
The e2e work pegs composite FV at $288 and signal-adjusted FV at $300, with DCF at $353 and an EPV floor of $159 — every method sits well below the $633 tape. Even taking the most generous method (DCF at $353) implies roughly 45% downside, and the EPV floor implies the current earnings power alone justifies only about a quarter of the price. That gap is too wide to explain purely by method conservatism; it says the market is capitalizing continued accretive M&A, margin expansion, and defense/imaging tailwinds as if they are near-certain. For a Strong-but-not-Wide-moat conglomerate carrying $2.1B net debt, that is a demanding setup. Quality earns a deserved-value bump versus the composite, but not a doubling. My skeptical deserved value lands somewhere in the $380-450 zone — better than the raw composite because earnings quality is clean and cash conversion is above 100%, but still materially under $633. That leaves the stock in Rich territory rather than obviously Overvalued, because the business is real and the DCF number is defensible; it just does not leave a margin of safety at today's price.
Verify before trusting this (4)
- Organic (ex-M&A) revenue growth by segment in latest 10-Q to test the 5-7% assumption
- FCF conversion and M&A cadence guidance on next call
- Defense/imaging book-to-bill and any DoD budget signal
- Interest expense trajectory and refinancing schedule on the $2.1B net debt
The active story on TDY is a platform-monopoly/defense-and-AI-infrastructure narrative with strong intensity and moderate durability. Recent 72h flow reinforces it directly: selection for the U.S. Army DUTCH thermal-sensing program, a new FLIR autonomous-vessel camera, PCIe 6.0 and Ultra Ethernet validation tools tied to AI/HPC, and the accretive Varex buyout. Peer framing (TDY vs AXON) is favorable, citing 22.4% YTD gains, cheaper relative valuation, and rising EPS estimates - analyst tone is leaning constructive rather than skeptical. That is a coherent tailwind package for this specific name. The macro tape is mildly risk-on (+30) but fragile - VIX 15.2, S&P off its high, 10y at 4.64%, market PE 25.7. With beta 0.92 and a defensive/defense-tilted profile, TDY is only lightly exposed to a risk-off flip; it neither gets the full lift of a mania tape nor the full damage of a wobble. Net: the narrative is doing more of the pushing than the macro. The main non-fundamental risk is not today's flow but narrative durability - the story is 'moderate' durability, and the bear framing (roll-up dressed as a monopoly, premium to DCF) is dormant, not dead. Any defense-budget wobble or M&A misstep could reawaken it quickly, but there is no such catalyst on the tape right now.
Verify before trusting this (4)
- DoD FY budget signals and defense contract cadence into year-end
- Varex integration commentary and any organic-growth disclosure at next print
- Whether sell-side target revisions continue upward or start plateauing
- VIX break above 18-20 or a sharper risk-off rotation out of defense/industrials
Two funded macro currents dominate Teledyne's markets: allied defense rearmament (unmanned, subsea, ISR sensing) and the broad instrumentation/imaging investment boom tied to semiconductor, space and autonomy build-outs. Both are budget-driven and slow-moving, which gives Teledyne multi-year order visibility on the defense side. Against that, higher-for-longer rates pressure industrial and scientific capex and raise the bar for the acquisition arithmetic the company depends on. Net: the world is supportive of the business direction but not of a step-change in its growth rate.
When we made this prediction on Aug 27, 2026, TDY was $626.44. We expect it to be $580.00 by Feb 2027, and we consider it great value under $430.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 27, 2026.
Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.
Post-Report Due Diligence NOTES
Evidence for a closer look, not a verdict — no score or designation on this page has been changed by it. Items marked material are ones where a conclusion above moves to the other side of the price.
trailing_eps
flips down 10%
adjusted_pe
flips down 10%