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Will Vontier Corp investors switch to Teledyne (USA Stocks:TDY)?

October 22, 2024  By
If you're considering a shift from Vontier Corp to Teledyne Technologies, it's worth noting that Teledyne's robust cash flow from operations of 836.1M and a strong institutional ownership of 92.78% could offer a compelling value proposition. However, potential investors should also weigh the impact of a net interest income loss of 84.2M on the company's financial health.

Main Ideas

By examining the fundamental indicators of Teledyne Technologies and Vontier, you can assess how market fluctuations impact their stock prices and determine if combining them in a portfolio might reduce overall risk. Pair trading strategies could be employed by taking a long position in Vontier and a short position in Teledyne Technologies. For more insights, explore our [pair correlation module](#) for detailed analysis. Now, let's delve into asset utilization. This metric shows how much revenue a company generates for each dollar of assets. Teledyne Technologies boasts an asset utilization ratio of 38.86%, indicating it earns $0.39 for every dollar of assets. A rising asset utilization ratio suggests that Teledyne is becoming more efficient in using its assets for daily operations.
Published over a month ago
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Reviewed by Raphi Shpitalnik

When opportunity knocks, investors must decide whether to answer. For those holding shares in Vontier Corp, the question arises: could Teledyne Technologies offer a more promising avenue for growth? Teledyne, a key player in the Scientific & Technical Instruments industry, boasts a market capitalization of $20.9 billion and a robust EBITDA of $1.37 billion, underscoring its solid financial foundation. Despite a net interest income loss of 84.2 million, the company's return on equity stands at a respectable 9.85%, reflecting efficient management of shareholder investments. With a 52-week high of $458.15, Teledyne's stock performance indicates potential for upward momentum. As investors weigh their options, Teledyne's blend of financial strength and market position could present a compelling case for those seeking value beyond Vontier. Vontier Corp seems to be bouncing back more quickly, with its stock price dipping 1.33% today compared to Teledyne Technologies' 0.77% decline. With growing interest in the aerospace and defense sectors, we're keeping a close eye on both Teledyne Technologies and Vontier Corp for potential short-term gains. We'll be examining the competitive strengths of each company to identify promising opportunities.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Teledyne Technologies. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its performance over time. Several factors influence the investment perspective on Teledyne Technologies, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.

How important is Teledyne Technologies's Liquidity

Teledyne Technologies financial leverage refers to using borrowed capital as a funding source to finance Teledyne Technologies Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Teledyne Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Teledyne Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Teledyne Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Teledyne Technologies's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Teledyne Technologies, but it might be worth checking our own buy vs. sell analysis

Teledyne Technologies Gross Profit

Teledyne Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Teledyne Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Teledyne Technologies Gross Profit growth over the last 10 years. Please check Teledyne Technologies' gross profit and other fundamental indicators for more details.

Is Teledyne Technologies valued reasonably by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Teledyne Technologies revenue. Based on the latest financial disclosure, Teledyne Technologies Incorporated reported 5.65 B of revenue.
This is 38.53% higher than that of the Aerospace & Defense sector and significantly higher than that of the Industrials industry. The revenue for all United States stocks is 40.16% higher than that of the firm. As for Vontier Corp we see revenue of 3.1 B, which is 160.09% higher than that of the Industrials
Teledyne5.65 Billion
Sector1.19 Billion
Vontier3.1 Billion
5.6 B
Teledyne
1.2 B
Sector
3.1 B
Vontier
Patience is a virtue in investing, and those considering a shift from Vontier Corp to Teledyne Technologies might find this particularly relevant. Teledyne, trading on the NYSE under the ticker TDY, presents a compelling case with its solid financials and strategic position in the Scientific & Technical Instruments industry. With a market capitalization of $20.91 billion and a robust cash flow from operations amounting to $836.1 million, the company shows a strong capacity to generate cash, which can be a key driver for future growth and stability. Furthermore, Teledyne's operating margin of 0.18% and a return on equity of 9.85% suggest efficient management and profitability, potentially offering greater value to investors seeking a stable and promising investment opportunity..

Teledyne Technologies has 69 percent chance to slide below $435 in 30 days

Teledyne Technologies' stock is currently facing challenges, with an Information Ratio of just 0.09, suggesting that its returns are not significantly outweighing the risks. This could mean the stock's performance might not justify its current price. There's a 69% chance it could dip below $435 in the next month, so investors should tread carefully. The data hints at a potential downturn, prompting current and prospective shareholders to reconsider their strategies or brace for possible price drops. Teledyne's stock shows low volatility, with a skewness of -0.09 and kurtosis of 1.71.
Understanding these volatility trends can help investors make informed decisions. Bear markets often increase volatility, which can adversely affect Teledyne's stock value, leading investors to adjust their portfolios.As we look ahead to November, Teledyne Technologies Incorporated (TDY) appears poised for continued growth. With an analyst target price estimated at 491.44 and a strong buy consensus from analysts, the stock shows promising potential. The company's robust market position and strategic initiatives suggest that it could surpass its current valuation, making it an attractive option for investors seeking to capitalize on its upward momentum. While no investment is without risk, Teledyne's solid fundamentals and positive analyst outlook provide a compelling case for those considering adding TDY to their portfolios..

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Editorial Staff

Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Teledyne Technologies Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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