Is Teradyne (TER) Halal?

NYSE Technology United States $46.3B
✓ HALAL
Confidence: 95/100
Teradyne (TER) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.7% against the AAOIFI threshold of 30%, Teradyne comfortably passes the key financial ratio tests. The company operates in the Technology sector (Semiconductor Equipment & Materials), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.7%
/ 30%
0.8%
/ 30%
1.8%
/ 30%
0.49%
/ 5%
✓ HALAL
DJIM 0.7%
/ 33%
0.8%
/ 33%
1.8%
/ 33%
0.49%
/ 5%
✓ HALAL
MSCI 6.8%
/ 33%
7.7%
/ 33%
18.8%
/ 33%
0.49%
/ 5%
✓ HALAL
S&P 0.7%
/ 33%
0.8%
/ 33%
1.8%
/ 33%
0.49%
/ 5%
✓ HALAL
FTSE 6.8%
/ 33%
7.7%
/ 33%
18.8%
/ 50%
0.49%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
85.4
Forward: 35.9
EPS
$3.46
Dividend Yield
18.0%
Payout: 13.8%
P/B Ratio
16.5
EV/EBITDA
56.9
EV: $46.2B
Revenue
$3.2B
Growth: 43.9%
Beta
1.8
High volatility
Current Ratio
1.7

Profitability

Gross Margin 58.2%
Operating Margin 30.3%
Net Margin 17.4%
Return on Equity (ROE) 19.7%
Return on Assets (ROA) 10.8%

Cash Flow & Balance Sheet

Operating Cash Flow$674M
Free Cash Flow$450M
Total Debt$283M
Debt-to-Equity10.1
Current Ratio1.7
Total Assets$4.2B

Price & Trading

Last Close$297.34
50-Day MA$288.81
200-Day MA$177.75
Avg Volume3.3M
Beta1.8
52-Week Range
$65.77
$344.92

About Teradyne (TER)

CEO
Mr. Gregory Stephen Smith
Employees
6,600
Sector
Technology
Industry
Semiconductor Equipment & Materials
Country
United States
Exchange
NYSE
Market Cap
$46.3B
Currency
USD

Teradyne, Inc. engages in the design, development, manufacture, and sale of automated test systems and robotics products in the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through Semiconductor Test, Robotics, and Other segments. The Semiconductor Test segment offers products and services for wafer level and device package testing, and system level testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The Robotics segment provides collaborative robotic arms and autonomous mobile robots for manufacturing, logistics, and industrial customers. It also provides product test instruments which includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.

Purification Calculator

As a halal stock with 0.49% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Teradyne (TER) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Teradyne is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Teradyne's debt ratio?

Teradyne's debt ratio is 0.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 6.8%.

Does Teradyne require dividend purification?

Yes, Teradyne has an impermissible income ratio of 0.49%, which means 0.49% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Teradyne's key financial metrics?

Teradyne has a market capitalization of $46.3B, trailing P/E ratio of 85.4, and revenue of $3.2B. The company maintains a gross margin of 58.2% and a net margin of 17.4%. Return on equity stands at 19.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.