TE CONNECTIVITY PLC (TEL) Fundamental Analysis & Valuation
NYSE:TEL • IE000IVNQZ81
Current stock price
210.02 USD
+3.65 (+1.77%)
At close:
210.02 USD
0 (0%)
After Hours:
This TEL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TEL Profitability Analysis
1.1 Basic Checks
- In the past year TEL was profitable.
- TEL had a positive operating cash flow in the past year.
- Each year in the past 5 years TEL has been profitable.
- In the past 5 years TEL always reported a positive cash flow from operatings.
1.2 Ratios
- TEL's Return On Assets of 8.08% is amongst the best of the industry. TEL outperforms 85.48% of its industry peers.
- Looking at the Return On Equity, with a value of 15.89%, TEL belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
- TEL's Return On Invested Capital of 13.94% is amongst the best of the industry. TEL outperforms 91.13% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TEL is above the industry average of 8.36%.
- 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 has a better Profit Margin (11.41%) than 85.48% of its industry peers.
- In the last couple of years the Profit Margin of TEL has declined.
- TEL's Operating Margin of 19.98% is amongst the best of the industry. TEL outperforms 96.77% of its industry peers.
- TEL's Operating Margin has improved in the last couple of years.
- TEL has a Gross Margin (35.69%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of TEL has grown nicely.
| 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. TEL Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TEL is creating value.
- Compared to 1 year ago, TEL has less shares outstanding
- 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 5.07 indicates that TEL is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.07, TEL is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
- The Debt to FCF ratio of TEL is 1.82, which is an excellent value as it means it would take TEL, only 1.82 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.82, TEL belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
- A Debt/Equity ratio of 0.37 indicates that TEL is not too dependend on debt financing.
- The Debt to Equity ratio of TEL (0.37) is worse than 65.32% of its industry peers.
- Although TEL's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.95
WACC7.14%
2.3 Liquidity
- A Current Ratio of 1.65 indicates that TEL should not have too much problems paying its short term obligations.
- TEL's Current ratio of 1.65 is on the low side compared to the rest of the industry. TEL is outperformed by 70.97% 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.
- Looking at the Quick ratio, with a value of 1.07, TEL is doing worse than 77.42% of the companies in the same industry.
- 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 | 1.65 | ||
| Quick Ratio | 1.07 |
3. TEL Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 24.25% over the past year.
- TEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.56% yearly.
- Looking at the last year, TEL shows a quite strong growth in Revenue. The Revenue has grown by 14.16% in the last year.
- 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
- Based on estimates for the next years, TEL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.60% on average per year.
- Based on estimates for the next years, TEL will show a quite strong growth in Revenue. The Revenue will grow by 8.80% on average per year.
EPS Next Y27.58%
EPS Next 2Y19.41%
EPS Next 3Y16.67%
EPS Next 5Y13.6%
Revenue Next Year13.75%
Revenue Next 2Y10.76%
Revenue Next 3Y9.5%
Revenue Next 5Y8.8%
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. TEL Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.04, TEL is valued on the expensive side.
- Based on the Price/Earnings ratio, TEL is valued a bit cheaper than the industry average as 79.84% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 25.61, TEL is valued at the same level.
- A Price/Forward Earnings ratio of 16.81 indicates a correct valuation of TEL.
- TEL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TEL is cheaper than 78.23% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, TEL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEL indicates a somewhat cheap valuation: TEL is cheaper than 74.19% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, TEL is valued cheaply inside the industry as 82.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.64 | ||
| EV/EBITDA | 14.6 |
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)0.8
PEG (5Y)1.42
EPS Next 2Y19.41%
EPS Next 3Y16.67%
5. TEL Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.57%, 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 0.46. TEL pays more dividend than 92.74% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, TEL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
- On average, the dividend of TEL grows each year by 7.55%, 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)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.
- TEL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.87%
EPS Next 2Y19.41%
EPS Next 3Y16.67%
TEL Fundamentals: All Metrics, Ratios and Statistics
210.02
+3.65 (+1.77%)
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 Owners93.41%
Inst Owner Change0.94%
Ins Owners0.12%
Ins Owner Change-8.96%
Market Cap61.63B
Revenue(TTM)18.09B
Net Income(TTM)2.06B
Analysts79.26
Price Target276.65 (31.73%)
Short Float %2.42%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)0.28%
PT rev (3m)1.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)3.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 16.81 | ||
| P/S | 3.41 | ||
| P/FCF | 19.64 | ||
| P/OCF | 14.94 | ||
| P/B | 4.75 | ||
| P/tB | 16.89 | ||
| EV/EBITDA | 14.6 |
EPS(TTM)9.53
EY4.54%
EPS(NY)12.49
Fwd EY5.95%
FCF(TTM)10.69
FCFY5.09%
OCF(TTM)14.06
OCFY6.7%
SpS61.67
BVpS44.26
TBVpS12.43
PEG (NY)0.8
PEG (5Y)1.42
Graham Number97.42
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 | 5.07 |
F-Score6
WACC7.14%
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 Y27.58%
EPS Next 2Y19.41%
EPS Next 3Y16.67%
EPS Next 5Y13.6%
Revenue 1Y (TTM)14.16%
Revenue growth 3Y1.97%
Revenue growth 5Y7.24%
Sales Q2Q%21.72%
Revenue Next Year13.75%
Revenue Next 2Y10.76%
Revenue Next 3Y9.5%
Revenue Next 5Y8.8%
EBIT growth 1Y20.46%
EBIT growth 3Y4.78%
EBIT growth 5Y14.36%
EBIT Next Year54.83%
EBIT Next 3Y21.98%
EBIT Next 5Y16.09%
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 Fundamental Analysis 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 22.04 and the Price/Book (PB) ratio is 4.75.
How sustainable is the dividend of TE CONNECTIVITY PLC (TEL) stock?
The dividend rating of TE CONNECTIVITY PLC (TEL) is 8 / 10 and the dividend payout ratio is 39.87%.