TE CONNECTIVITY PLC (TEL) Stock Fundamental Analysis
USA - NYSE:TEL - IE000IVNQZ81 - Common Stock
213.12 USD
-2.44 (-1.13%)
Overall TEL gets a fundamental rating of 7 out of 10. We evaluated TEL against 124 industry peers in the Electronic Equipment, Instruments & Components industry. TEL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TEL has a decent growth rate and is not valued too expensively. Finally TEL also has an excellent dividend rating. These ratings would make TEL suitable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
TEL had positive earnings in the past year.
TEL had a positive operating cash flow in the past year.
TEL had positive earnings in 4 of the past 5 years.
TEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TEL has a Return On Assets of 5.85%. This is in the better half of the industry: TEL outperforms 79.03% of its industry peers.
TEL's Return On Equity of 11.75% is amongst the best of the industry. TEL outperforms 81.45% of its industry peers.
With an excellent Return On Invested Capital value of 13.51%, TEL belongs to the best of the industry, outperforming 91.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TEL is above the industry average of 9.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 11.75% | ||
| ROIC | 13.51% |
ROA(3y)11.48%
ROA(5y)8.75%
ROE(3y)21.62%
ROE(5y)16.71%
ROIC(3y)14.05%
ROIC(5y)12.99%
1.3 Margins
The Profit Margin of TEL (8.78%) is better than 80.65% of its industry peers.
TEL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.30%, TEL belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
TEL's Operating Margin has improved in the last couple of years.
TEL has a Gross Margin (34.99%) which is in line with its industry peers.
TEL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.3% | ||
| PM (TTM) | 8.78% | ||
| GM | 34.99% |
OM growth 3Y1.36%
OM growth 5Y2.3%
PM growth 3Y9.97%
PM growth 5Y8%
GM growth 3Y1.69%
GM growth 5Y1.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TEL is creating value.
The number of shares outstanding for TEL has been reduced compared to 1 year ago.
Compared to 5 years ago, TEL has less shares outstanding
TEL has a better debt/assets ratio than last year.
2.2 Solvency
TEL has an Altman-Z score of 5.03. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.03, TEL is doing good in the industry, outperforming 71.77% of the companies in the same industry.
The Debt to FCF ratio of TEL is 1.98, which is an excellent value as it means it would take TEL, only 1.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TEL (1.98) is better than 76.61% of its industry peers.
TEL has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.39, TEL is doing worse than 62.10% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for TEL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.88
WACC7.19%
2.3 Liquidity
A Current Ratio of 1.52 indicates that TEL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.52, TEL is doing worse than 72.58% of the companies in the same industry.
TEL has a Quick Ratio of 1.52. This is a bad value and indicates that TEL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.96, TEL is not doing good in the industry: 79.03% of the companies in the same industry are doing better.
The current and quick ratio evaluation for TEL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.91% over the past year.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.41% yearly.
TEL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.86%.
TEL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
EPS 1Y (TTM)11.91%
EPS 3Y5.06%
EPS 5Y6.41%
EPS Q2Q%18.85%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y2.02%
Revenue growth 5Y3.33%
Sales Q2Q%13.95%
3.2 Future
Based on estimates for the next years, TEL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.62% on average per year.
Based on estimates for the next years, TEL will show a small growth in Revenue. The Revenue will grow by 7.11% on average per year.
EPS Next Y14.84%
EPS Next 2Y13.06%
EPS Next 3Y12.18%
EPS Next 5Y10.62%
Revenue Next Year8.26%
Revenue Next 2Y8.37%
Revenue Next 3Y7.51%
Revenue Next 5Y7.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.77 indicates a quite expensive valuation of TEL.
TEL's Price/Earnings ratio is a bit cheaper when compared to the industry. TEL is cheaper than 70.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. TEL is around the same levels.
Based on the Price/Forward Earnings ratio of 22.05, the valuation of TEL can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEL indicates a somewhat cheap valuation: TEL is cheaper than 64.52% of the companies listed in the same industry.
TEL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.77 | ||
| Fwd PE | 22.05 |
4.2 Price Multiples
66.13% of the companies in the same industry are more expensive than TEL, based on the Enterprise Value to EBITDA ratio.
78.23% of the companies in the same industry are more expensive than TEL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.85 | ||
| EV/EBITDA | 17.07 |
4.3 Compensation for Growth
TEL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TEL may justify a higher PE ratio.
TEL's earnings are expected to grow with 12.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)4.02
EPS Next 2Y13.06%
EPS Next 3Y12.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, TEL has a reasonable but not impressive dividend return.
TEL's Dividend Yield is rather good when compared to the industry average which is at 2.22. TEL pays more dividend than 88.71% of the companies in the same industry.
With a Dividend Yield of 1.31, TEL pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of TEL grows each year by 6.79%, which is quite nice.
TEL has been paying a dividend for at least 10 years, so it has a reliable track record.
TEL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.79%
Div Incr Years14
Div Non Decr Years17
5.3 Sustainability
TEL pays out 54.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
TEL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.3%
EPS Next 2Y13.06%
EPS Next 3Y12.18%
NYSE:TEL (9/25/2025, 12:26:50 PM)
213.12
-2.44 (-1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners94.76%
Inst Owner Change-1.29%
Ins Owners0.12%
Ins Owner Change-0.55%
Market Cap62.97B
Analysts79.17
Price Target221.55 (3.96%)
Short Float %1.31%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend2.48
Dividend Growth(5Y)6.79%
DP54.3%
Div Incr Years14
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.16%
Min EPS beat(2)5.89%
Max EPS beat(2)8.43%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-0.77%
Max EPS beat(4)8.43%
EPS beat(8)7
Avg EPS beat(8)3.12%
EPS beat(12)10
Avg EPS beat(12)2.84%
EPS beat(16)14
Avg EPS beat(16)3.46%
Revenue beat(2)2
Avg Revenue beat(2)3.68%
Min Revenue beat(2)3.34%
Max Revenue beat(2)4.01%
Revenue beat(4)3
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)4.01%
Revenue beat(8)3
Avg Revenue beat(8)0%
Revenue beat(12)6
Avg Revenue beat(12)0.53%
Revenue beat(16)10
Avg Revenue beat(16)1.01%
PT rev (1m)1.56%
PT rev (3m)30.27%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)8.55%
EPS NY rev (1m)0%
EPS NY rev (3m)4.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.77 | ||
| Fwd PE | 22.05 | ||
| P/S | 3.8 | ||
| P/FCF | 21.85 | ||
| P/OCF | 16.75 | ||
| P/B | 5.09 | ||
| P/tB | 22.14 | ||
| EV/EBITDA | 17.07 |
EPS(TTM)8.27
EY3.88%
EPS(NY)9.66
Fwd EY4.53%
FCF(TTM)9.75
FCFY4.58%
OCF(TTM)12.73
OCFY5.97%
SpS56.12
BVpS41.9
TBVpS9.63
PEG (NY)1.74
PEG (5Y)4.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 11.75% | ||
| ROCE | 16.1% | ||
| ROIC | 13.51% | ||
| ROICexc | 13.99% | ||
| ROICexgc | 27.78% | ||
| OM | 19.3% | ||
| PM (TTM) | 8.78% | ||
| GM | 34.99% | ||
| FCFM | 17.38% |
ROA(3y)11.48%
ROA(5y)8.75%
ROE(3y)21.62%
ROE(5y)16.71%
ROIC(3y)14.05%
ROIC(5y)12.99%
ROICexc(3y)15.24%
ROICexc(5y)14.04%
ROICexgc(3y)26.54%
ROICexgc(5y)25.01%
ROCE(3y)16.74%
ROCE(5y)15.48%
ROICexcg growth 3Y-1.57%
ROICexcg growth 5Y1.2%
ROICexc growth 3Y0.91%
ROICexc growth 5Y3.66%
OM growth 3Y1.36%
OM growth 5Y2.3%
PM growth 3Y9.97%
PM growth 5Y8%
GM growth 3Y1.69%
GM growth 5Y1.05%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 106.3% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.39% | ||
| Profit Quality | 198.08% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 5.03 |
F-Score6
WACC7.19%
ROIC/WACC1.88
Cap/Depr(3y)90.78%
Cap/Depr(5y)88.17%
Cap/Sales(3y)4.52%
Cap/Sales(5y)4.56%
Profit Quality(3y)94.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.91%
EPS 3Y5.06%
EPS 5Y6.41%
EPS Q2Q%18.85%
EPS Next Y14.84%
EPS Next 2Y13.06%
EPS Next 3Y12.18%
EPS Next 5Y10.62%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y2.02%
Revenue growth 5Y3.33%
Sales Q2Q%13.95%
Revenue Next Year8.26%
Revenue Next 2Y8.37%
Revenue Next 3Y7.51%
Revenue Next 5Y7.11%
EBIT growth 1Y9.33%
EBIT growth 3Y3.4%
EBIT growth 5Y5.71%
EBIT Next Year39.63%
EBIT Next 3Y18.24%
EBIT Next 5Y13.04%
FCF growth 1Y31.72%
FCF growth 3Y12.09%
FCF growth 5Y10.83%
OCF growth 1Y27.98%
OCF growth 3Y9.12%
OCF growth 5Y7.5%