TE CONNECTIVITY PLC (TEL) Stock Fundamental Analysis
NYSE:TEL • IE000IVNQZ81
225.44 USD
-3.02 (-1.32%)
At close: Feb 12, 2026
227.413 USD
+1.97 (+0.88%)
After Hours: 2/12/2026, 5:18:05 PM
Overall TEL gets a fundamental rating of 7 out of 10. We evaluated TEL against 123 industry peers in the Electronic Equipment, Instruments & Components industry. TEL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TEL is not valued too expensively and it also shows a decent growth rate. Finally TEL also has an excellent dividend rating. These ratings could make TEL a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year TEL was profitable.
- In the past year TEL had a positive cash flow from operations.
- Each year in the past 5 years TEL has been profitable.
- Each year in the past 5 years TEL had a positive operating cash flow.
1.2 Ratios
- TEL has a better Return On Assets (8.08%) than 87.80% of its industry peers.
- With an excellent Return On Equity value of 15.89%, TEL belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 13.94%, TEL belongs to the top of the industry, outperforming 91.87% 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 8.99%.
- The last Return On Invested Capital (13.94%) for TEL is above the 3 year average (12.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 15.89% | ||
| ROIC | 13.94% |
ROA(3y)10.04%
ROA(5y)10.47%
ROE(3y)19.01%
ROE(5y)20.15%
ROIC(3y)12.89%
ROIC(5y)13.15%
1.3 Margins
- TEL's Profit Margin of 11.41% is amongst the best of the industry. TEL outperforms 88.62% of its industry peers.
- In the last couple of years the Profit Margin of TEL has declined.
- The Operating Margin of TEL (19.98%) is better than 95.94% of its industry peers.
- In the last couple of years the Operating Margin of TEL has grown nicely.
- TEL has a Gross Margin of 35.69%. This is comparable to the rest of the industry: TEL outperforms 56.91% of its industry peers.
- TEL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.98% | ||
| PM (TTM) | 11.41% | ||
| GM | 35.69% |
OM growth 3Y2.75%
OM growth 5Y6.64%
PM growth 3Y-10.56%
PM growth 5YN/A
GM growth 3Y3.02%
GM growth 5Y2.79%
2. Health
2.1 Basic Checks
- TEL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- TEL has less shares outstanding than it did 1 year ago.
- TEL has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TEL has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.34 indicates that TEL is not in any danger for bankruptcy at the moment.
- TEL has a better Altman-Z score (5.34) than 73.98% of its industry peers.
- TEL has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
- The Debt to FCF ratio of TEL (1.82) is better than 78.86% of its industry peers.
- A Debt/Equity ratio of 0.37 indicates that TEL is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.37, TEL is not doing good in the industry: 61.79% of the companies in the same industry are doing better.
- 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 | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.34 |
ROIC/WACC1.95
WACC7.16%
2.3 Liquidity
- A Current Ratio of 1.65 indicates that TEL should not have too much problems paying its short term obligations.
- TEL has a Current ratio of 1.65. This is in the lower half of the industry: TEL underperforms 69.11% of its industry peers.
- TEL has a Quick Ratio of 1.07. This is a normal value and indicates that TEL is financially healthy and should not expect problems in meeting its short term obligations.
- TEL has a worse Quick ratio (1.07) than 75.61% of its industry peers.
- TEL does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.65 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
- TEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.25%, which is quite impressive.
- TEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.56% yearly.
- The Revenue has grown by 14.16% in the past year. This is quite good.
- TEL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.24% yearly.
EPS 1Y (TTM)24.25%
EPS 3Y6.22%
EPS 5Y15.56%
EPS Q2Q%39.49%
Revenue 1Y (TTM)14.16%
Revenue growth 3Y1.97%
Revenue growth 5Y7.24%
Sales Q2Q%21.72%
3.2 Future
- TEL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.77% yearly.
- Based on estimates for the next years, TEL will show a quite strong growth in Revenue. The Revenue will grow by 8.76% on average per year.
EPS Next Y27.6%
EPS Next 2Y19.35%
EPS Next 3Y16.67%
EPS Next 5Y13.77%
Revenue Next Year13.75%
Revenue Next 2Y10.71%
Revenue Next 3Y9.5%
Revenue Next 5Y8.76%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.66 indicates a rather expensive valuation of TEL.
- Based on the Price/Earnings ratio, TEL is valued a bit cheaper than 75.61% of the companies in the same industry.
- TEL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 18.07 indicates a rather expensive valuation of TEL.
- Based on the Price/Forward Earnings ratio, TEL is valued a bit cheaper than the industry average as 77.24% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of TEL to the average of the S&P500 Index (27.69), we can say TEL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
- TEL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TEL is cheaper than 73.98% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TEL is valued cheaply inside the industry as 82.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.14 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
- TEL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of TEL may justify a higher PE ratio.
- A more expensive valuation may be justified as TEL's earnings are expected to grow with 16.67% in the coming years.
PEG (NY)0.86
PEG (5Y)1.52
EPS Next 2Y19.35%
EPS Next 3Y16.67%
5. Dividend
5.1 Amount
- TEL has a Yearly Dividend Yield of 1.36%.
- Compared to an average industry Dividend Yield of 0.48, TEL pays a better dividend. On top of this TEL pays more dividend than 91.87% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.80, TEL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
- On average, the dividend of TEL grows each year by 7.55%, which is quite nice.
- TEL has paid a dividend for at least 10 years, which is a reliable track record.
- TEL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.55%
Div Incr Years14
Div Non Decr Years17
5.3 Sustainability
- 39.87% of the earnings are spent on dividend by TEL. This is a low number and sustainable payout ratio.
- The dividend of TEL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.87%
EPS Next 2Y19.35%
EPS Next 3Y16.67%
225.44
-3.02 (-1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)01-21 2026-01-21/bmo
Earnings (Next)04-21 2026-04-21
Inst Owners93.2%
Inst Owner Change-1.27%
Ins Owners0.12%
Ins Owner Change-7.87%
Market Cap66.32B
Revenue(TTM)18.09B
Net Income(TTM)2.06B
Analysts79.2
Price Target275.88 (22.37%)
Short Float %1.95%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend2.7
Dividend Growth(5Y)7.55%
DP39.87%
Div Incr Years14
Div Non Decr Years17
Ex-Date02-20 2026-02-20 (0.71)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.64%
Min EPS beat(2)5.56%
Max EPS beat(2)5.72%
EPS beat(4)4
Avg EPS beat(4)6.4%
Min EPS beat(4)5.56%
Max EPS beat(4)8.43%
EPS beat(8)7
Avg EPS beat(8)3.68%
EPS beat(12)11
Avg EPS beat(12)3.77%
EPS beat(16)14
Avg EPS beat(16)3.52%
Revenue beat(2)2
Avg Revenue beat(2)2.29%
Min Revenue beat(2)2.01%
Max Revenue beat(2)2.57%
Revenue beat(4)4
Avg Revenue beat(4)2.98%
Min Revenue beat(4)2.01%
Max Revenue beat(4)4.01%
Revenue beat(8)5
Avg Revenue beat(8)0.85%
Revenue beat(12)6
Avg Revenue beat(12)0.63%
Revenue beat(16)10
Avg Revenue beat(16)1.21%
PT rev (1m)0.98%
PT rev (3m)17.83%
EPS NQ rev (1m)2.08%
EPS NQ rev (3m)2.09%
EPS NY rev (1m)3.06%
EPS NY rev (3m)5.73%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 18.07 | ||
| P/S | 3.67 | ||
| P/FCF | 21.14 | ||
| P/OCF | 16.07 | ||
| P/B | 5.11 | ||
| P/tB | 18.18 | ||
| EV/EBITDA | 15.83 |
EPS(TTM)9.53
EY4.23%
EPS(NY)12.48
Fwd EY5.54%
FCF(TTM)10.66
FCFY4.73%
OCF(TTM)14.03
OCFY6.22%
SpS61.51
BVpS44.14
TBVpS12.4
PEG (NY)0.86
PEG (5Y)1.52
Graham Number97.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 15.89% | ||
| ROCE | 17.65% | ||
| ROIC | 13.94% | ||
| ROICexc | 14.85% | ||
| ROICexgc | 28.87% | ||
| OM | 19.98% | ||
| PM (TTM) | 11.41% | ||
| GM | 35.69% | ||
| FCFM | 17.34% |
ROA(3y)10.04%
ROA(5y)10.47%
ROE(3y)19.01%
ROE(5y)20.15%
ROIC(3y)12.89%
ROIC(5y)13.15%
ROICexc(3y)13.97%
ROICexc(5y)14.2%
ROICexgc(3y)25.41%
ROICexgc(5y)25.74%
ROCE(3y)16.32%
ROCE(5y)16.64%
ROICexgc growth 3Y1.55%
ROICexgc growth 5Y10.25%
ROICexc growth 3Y-2.52%
ROICexc growth 5Y8.84%
OM growth 3Y2.75%
OM growth 5Y6.64%
PM growth 3Y-10.56%
PM growth 5YN/A
GM growth 3Y3.02%
GM growth 5Y2.79%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 108.56% | ||
| Cap/Sales | 5.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.16% | ||
| Profit Quality | 151.99% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 5.34 |
F-Score6
WACC7.16%
ROIC/WACC1.95
Cap/Depr(3y)95.4%
Cap/Depr(5y)94.75%
Cap/Sales(3y)4.76%
Cap/Sales(5y)4.72%
Profit Quality(3y)129.05%
Profit Quality(5y)109%
High Growth Momentum
Growth
EPS 1Y (TTM)24.25%
EPS 3Y6.22%
EPS 5Y15.56%
EPS Q2Q%39.49%
EPS Next Y27.6%
EPS Next 2Y19.35%
EPS Next 3Y16.67%
EPS Next 5Y13.77%
Revenue 1Y (TTM)14.16%
Revenue growth 3Y1.97%
Revenue growth 5Y7.24%
Sales Q2Q%21.72%
Revenue Next Year13.75%
Revenue Next 2Y10.71%
Revenue Next 3Y9.5%
Revenue Next 5Y8.76%
EBIT growth 1Y20.46%
EBIT growth 3Y4.78%
EBIT growth 5Y14.36%
EBIT Next Year54.03%
EBIT Next 3Y21.65%
EBIT Next 5Y16.14%
FCF growth 1Y22.06%
FCF growth 3Y23.51%
FCF growth 5Y17.47%
OCF growth 1Y26.18%
OCF growth 3Y18.81%
OCF growth 5Y15.75%
TE CONNECTIVITY PLC / TEL FAQ
Can you provide the ChartMill fundamental rating for TE CONNECTIVITY PLC?
ChartMill assigns a fundamental rating of 7 / 10 to TEL.
What is the valuation status for TEL stock?
ChartMill assigns a valuation rating of 6 / 10 to TE CONNECTIVITY PLC (TEL). This can be considered as Fairly Valued.
Can you provide the profitability details for TE CONNECTIVITY PLC?
TE CONNECTIVITY PLC (TEL) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TEL stock?
The Price/Earnings (PE) ratio for TE CONNECTIVITY PLC (TEL) is 23.66 and the Price/Book (PB) ratio is 5.11.
How sustainable is the dividend of TE CONNECTIVITY PLC (TEL) stock?
The dividend rating of TE CONNECTIVITY PLC (TEL) is 7 / 10 and the dividend payout ratio is 39.87%.