Teledyne Technologies Inc (TDY)'s Winning Formula: Financial Metrics and Competitive Strengths

Exploring the Robust Financial Health and Growth Prospects of Teledyne Technologies Inc

Teledyne Technologies Inc (TDY, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Despite a slight daily loss of 0.05%, the company's stock price stands at $381.28, reflecting a three-month change of -10.97%. A detailed analysis, supported by the GF Score, indicates that Teledyne Technologies Inc is poised for significant growth, making it a compelling choice for investors.

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What Is the GF Score?

The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. Teledyne Technologies Inc boasts a GF Score of 93, signaling strong future performance potential.

Understanding Teledyne Technologies Inc's Business

Teledyne Technologies Inc, with a market cap of $18.08 billion and annual sales of $5.60 billion, operates across four main segments: instrumentation, digital imaging, aerospace and defense electronics, and engineered systems. The company's diverse product range and significant revenue from government contracts underscore its integral role in industrial and technological markets. Its operating margin stands at 18.53%, reflecting efficient management and robust profitability.

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Financial Strength Breakdown

Teledyne Technologies Inc's financial strength is evident in its impressive Interest Coverage ratio of 15.04, significantly above the benchmark set by investing legend Benjamin Graham. Additionally, its Debt-to-Revenue ratio of 0.58 showcases a strategic approach to debt management, further solidifying its financial stability.

Profitability Rank Breakdown

The company's profitability is highlighted by its increasing Operating Margin, which has grown from 15.80% in 2019 to 18.58% in 2023. This trend, along with a rising Gross Margin, demonstrates Teledyne Technologies Inc's enhanced ability to convert revenue into profit. The company's Piotroski F-Score and Predictability Rank further affirm its operational efficiency and reliability.

Growth Rank Breakdown

Teledyne Technologies Inc is distinguished by its strong growth metrics. It has achieved a 3-Year Revenue Growth Rate of 13%, outperforming 76.71% of its industry peers. The company's EBITDA growth rates over the past three and five years underscore its sustained growth trajectory and strategic expansion efforts.

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Conclusion

Considering Teledyne Technologies Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies using the GF Score Screen available to GuruFocus Premium members.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.