Teradyne (TER) is the league leader in providing automated test equipment for the semiconductor industry. It's also a leader in providing book value growth for its investors. In the last year, TER has seen its book value per share climb by 25.5%.
Teradyne's offerings help chipmakers operate. Lately, though, a falling tide has beached all ships in the semi industry, as demand waned and inventories lingered at relative highs. That slowdown in chip manufacturing had a brutal effect on Teradyne's financial performance in 2008, but the firm took the slowdown as an opportunity to regroup, shoring up its business and consolidating its offerings into a single platform: FLEX. That rework has had stellar effects more recently as profit margins climbed to new highs and the firm's balance sheet swelled with cash.>>5 Stocks Hedge Funds Hate -- But Should You? Today, Teradyne boasts more than $840 million in cash and investments, easily offsetting a $167 million in debt. In essence that means that around 24% of TER's market capitalization is made up of cold, hard cash. As semiconductors start ramping up production again in late 2012, that's impressive positioning for a stock with a sub-10 P/E and a track record of book value growth.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV