$Teledyne Technologies (TDY.US)$In the analysis on 2022.8.9,...

An American company listed in 1999 primarily engaging in digital imaging and instrumentation businesses, with its main markets in the USA and Europe. The current price is 393.84.

Over the past 5 years, except for 2020, revenue has grown for 4 years, with an average growth rate of 14%, average operating profit growth rate of 20%, and average net income growth rate of 21.5%. In 2023, interest expenses accounted for 7.4% of operating profit, indicating a light interest burden. The gross margin has increased from 39.3% to 43.3% in nearly 5 years, while the net margin has risen from 12.7% to 15.7%. The return on net assets has decreased from 16.3% to 10.2%.

In Q1 2024, revenue shrank by 2.4%, operating profit shrank by 3.6%, and net income shrank by 0.1%.

Over the past 5 years, the debt-to-assets ratio has decreased from 40.7% to 36%, with significant growth in total assets and net assets. Goodwill saw a substantial increase in 2022, rising from 2.56 billion to 10.73 billion, indicating significant acquisition activities. This explains the rapid growth in revenue and profit over the past 3 years. Growth driven by acquisitions is typically time-limited, and there may be impairment pressure in the future, as seen in the rapid decline in revenue and profit growth rates. In 2023, revenue growth decreased to 3.2%, and net income growth decreased to 12.3%.

The ratio and growth rate of accounts receivable and inventory are normal, with goodwill and other intangible assets of 10.163 billion, exceeding net assets of 9.333 billion, long-term loans of 2.646 billion, which is 3 times the annual profit, not considered excessive.

Currently, cash is 0.912 billion, with a current ratio of 1.8 and a quick ratio of 1.2.

Due to the significant acquisition in 2021, the cash flow from operating activities has been lower than the net investment cash flow for the past 5 years, resulting in no shareholder surplus.

Currently, the PE ratio is 21.3. Considering the limited growth usually brought by acquisitions, we are temporarily observing.