Teledyne Technologies Incorporated
TDYTeledyne wins by owning dozens of specialized, high-reliability technology niches where customers value precision over price.
Because this is a quiet compounder whose durability depends more on engineering depth and capital allocation than hype.
Business Model
Devices plus services
It sells high-performance sensors, imaging systems, and instruments, often paired with software and long-term support.
Economic Engine
High cash generation
It converts earnings into cash at about 1.20 times net income, giving it flexibility to reinvest and buy back shares.
Long-Term Lens
Ecosystem durability
The key question is whether its collection of niche technologies stays essential in aerospace, defense, and industrial markets.
BinaPrint Snapshot
Style
Blend
Fitness
Stressed
Updated Mar 8, 2026
On this page
Company Story
How do Teledyne Technologies Incorporated's business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“A disciplined acquirer of niche sensor and imaging businesses with solid cash generation, but rising financial stress means the next decade hinges on balance sheet strength.”
What does Teledyne Technologies Incorporated actually do?
Teledyne designs and manufactures specialized sensors, cameras, instruments, and electronic systems used in demanding environments.
- Imaging systems used in aerospace, defense, and scientific research.
- Marine and environmental sensors that monitor oceans and energy infrastructure.
- Electronic components and test equipment for industrial and government customers.
Why it matters
Mission-critical products
Customers use these systems in aircraft, satellites, labs, and submarines, where reliability matters more than shaving a few dollars off the price.
How does Teledyne Technologies Incorporated make money?
It sells high-value hardware and instruments, often bundled with software and service, to government and industrial buyers.
- Gross margin of 39.2 percent shows pricing power in specialized niches.
- Operating margin of 18.8 percent reflects disciplined cost control.
- No dividend, with about 0.4 billion dollars spent on share buybacks in the last year.
Economic clue
Strong cash conversion
Free cash flow is about 1.20 times net income, meaning reported profits turn into real cash.
Why do long-term investors keep Teledyne Technologies Incorporated on the radar?
Teledyne sits at the intersection of long-term trends like automation, advanced sensing, defense modernization, and ocean monitoring.
- Revenue has grown about 7.3 percent per year on average over five years.
- Earnings per share have grown about 16.3 percent per year over five years.
- Products are embedded in systems that customers use for years or decades.
Investor takeaway
Compounding potential
Steady mid-single-digit revenue growth paired with faster earnings growth can build meaningful value over 10 to 20 years.
Based on company financial statements.
What Could Change The Story
- Stabilizing would move the profile toward Steady.
Benchmark Comparison
How has Teledyne Technologies Incorporated performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$1,673
+67.3% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| TDY | +67.3% | $1,673 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Teledyne Technologies Incorporated
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- Exposure to aerospace, defense, and industrial technology without betting on one single product.
- A company that reinvests cash rather than paying dividends.
- A steady grower with revenue rising around 7 to 8 percent per year.
Be Careful If You Expect
- Rapid double-digit revenue expansion year after year.
- A high dividend income stream.
- A pristine balance sheet profile, since it is currently classified as financially stressed.
What To Watch Over Time
- Whether operating margins, now 18.8 percent, stabilize after recent contraction.
- Debt levels and overall financial health following acquisitions.
- Continued earnings per share growth above revenue growth, currently 16.3 percent versus 7.3 percent over five years.
BinaPrint Position
Where does Teledyne Technologies Incorporated sit on the BinaPrint map right now?
Test whether business quality and financial profile match the company's stated narrative.
Advanced BinaPrint details
Open the axes, investor fit, and risk framing behind this profile.
Key Metrics
Which metrics matter most for Teledyne Technologies Incorporated right now?
Three durable business metrics that matter more than day-to-day price moves.
7.3% average annual growth
16.3% average annual growth
39.2% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | 7.3% average annual growth | Shows whether the business has been expanding fast enough to create more long-term value. |
| EPS Growth | 16.3% average annual growth | Shows whether earnings per share are compounding for owners over time. |
| Margin Quality | 39.2% gross margin | Shows how much room the business has to fund growth, absorb shocks, and stay profitable. |
Based on company financial statements.
Fundamentals
What do Teledyne Technologies Incorporated's fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
6.0% ROIC
39.2% gross margin
17.6% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 6.0% ROIC | The business is currently showing poor capital efficiency. |
| Profitability | 39.2% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 17.6% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Teledyne Technologies Incorporated?
Teledyne Technologies Incorporated currently appears in these ETF and fund proxies.
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about Teledyne Technologies Incorporated?
Company-specific questions readers often ask about Teledyne Technologies Incorporated.
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
Teledyne designs and manufactures specialized sensors, imaging systems, and electronic components used in aerospace, defense, marine, and industrial markets.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Owning dozens of niche sensor and imaging businesses reduces reliance on any single product and creates a diversified stream of specialized revenue.
Long-term defense modernization and increased demand for environmental monitoring and automation can support steady demand for advanced sensing systems.
Earnings per share have grown about 16.3 percent per year over five years, outpacing revenue growth, showing operating leverage and disciplined capital allocation.
Strong cash conversion at 1.20 times net income provides fuel for acquisitions and buybacks that can compound value over decades.
Bear case
What can break
A prolonged decline in aerospace or defense spending could hit multiple segments at once, given exposure to government and industrial budgets.
Technological disruption, such as cheaper or software-based sensing alternatives, could erode pricing power in hardware-heavy businesses.
Margin contraction, already visible, could become structural if competition increases or integration of acquisitions proves harder than expected.
A stressed financial profile limits flexibility if a recession or industry downturn reduces cash flow.
Risk Radar
Key Risks
Where downside pressure can build.
Margin compression: Operating margin at 18.8 percent is contracting, and a 3 to 5 point drop would meaningfully reduce earnings power.
Cyclical end markets: Exposure to aerospace and defense means revenue growth of about 7.9 percent year-over-year could slow sharply in a downturn.
Acquisition integration: Ongoing reliance on acquisitions increases risk of overpaying or failing to achieve expected returns.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $647.64
- Daily move
- -1.10%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.