TE CONNECTIVITY LTD (TEL)
CH0102993182 - Common Stock
TEL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 127 industry peers in the Electronic Equipment, Instruments & Components industry. TEL scores excellent on profitability, but there are some minor concerns on its financial health. TEL has a decent growth rate and is not valued too expensively. TEL also has an excellent dividend rating. This makes TEL very considerable for dividend 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.
TEL had positive earnings in 4 of the past 5 years.
In the past 5 years TEL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.37%, TEL belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
TEL has a better Return On Equity (25.24%) than 96.03% of its industry peers.
TEL has a better Return On Invested Capital (12.60%) than 87.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEL is above the industry average of 9.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.37% | ||
| ROE | 25.24% | ||
| ROIC | 12.6% |
ROA(3y)10.34%
ROA(5y)7.83%
ROE(3y)20.09%
ROE(5y)15.03%
ROIC(3y)14.34%
ROIC(5y)12.94%
1.3 Margins
TEL's Profit Margin of 20.69% is amongst the best of the industry. TEL outperforms 98.41% of its industry peers.
In the last couple of years the Profit Margin of TEL has declined.
With an excellent Operating Margin value of 17.36%, TEL belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
TEL's Operating Margin has been stable in the last couple of years.
TEL has a Gross Margin of 32.40%. This is comparable to the rest of the industry: TEL outperforms 56.35% of its industry peers.
In the last couple of years the Gross Margin of TEL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.36% | ||
| PM (TTM) | 20.69% | ||
| GM | 32.4% |
OM growth 3Y5.51%
OM growth 5Y-1.22%
PM growth 3YN/A
PM growth 5Y-8.27%
GM growth 3Y0.91%
GM growth 5Y-1.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TEL is creating value.
TEL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TEL has less shares outstanding
Compared to 1 year ago, TEL has an improved debt to assets ratio.
2.2 Solvency
TEL has an Altman-Z score of 4.78. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TEL (4.78) is better than 76.98% of its industry peers.
TEL has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
TEL has a better Debt to FCF ratio (1.63) than 73.81% of its industry peers.
TEL has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
TEL has a Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 4.78 |
ROIC/WACC2.55
WACC4.95%
2.3 Liquidity
TEL has a Current Ratio of 1.86. 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 Current ratio of 1.86. This is in the lower half of the industry: TEL underperforms 67.46% of its industry peers.
TEL has a Quick Ratio of 1.16. 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 Quick ratio of 1.16. This is in the lower half of the industry: TEL underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
TEL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.56%.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.74% yearly.
The Revenue has decreased by -1.72% in the past year.
TEL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.77% yearly.
EPS 1Y (TTM)-0.56%
EPS 3Y16.56%
EPS 5Y3.74%
EPS growth Q2Q20.26%
Revenue 1Y (TTM)-1.72%
Revenue growth 3Y9.62%
Revenue growth 5Y2.77%
Revenue growth Q2Q-0.26%
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 8.82% yearly.
TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.18% yearly.
EPS Next Y13.79%
EPS Next 2Y12.34%
EPS Next 3Y11.89%
EPS Next 5Y8.82%
Revenue Next Year0.7%
Revenue Next 2Y3.81%
Revenue Next 3Y4.75%
Revenue Next 5Y5.18%
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
Based on the Price/Earnings ratio of 19.95, the valuation of TEL can be described as rather expensive.
66.67% of the companies in the same industry are more expensive than TEL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.20. TEL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.54, which 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 73.81% of the companies in the same industry.
TEL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
TEL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TEL is cheaper than 68.25% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEL indicates a somewhat cheap valuation: TEL is cheaper than 79.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.88 | ||
| EV/EBITDA | 12.96 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TEL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)5.33
EPS Next 2Y12.34%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 1.86%.
TEL's Dividend Yield is rather good when compared to the industry average which is at 1.77. TEL pays more dividend than 92.06% of the companies in the same industry.
TEL's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of TEL is nicely growing with an annual growth rate of 6.41%!
TEL has paid a dividend for at least 10 years, which is a reliable track record.
TEL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.41%
Div Incr Years13
Div Non Decr Years16
5.3 Sustainability
TEL pays out 22.01% of its income as dividend. This is a sustainable payout ratio.
TEL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.01%
EPS Next 2Y12.34%
EPS Next 3Y11.89%
TE CONNECTIVITY LTD
NYSE:TEL (4/25/2024, 7:20:12 PM)
After market: 140.48 0 (0%)140.48
+0.48 (+0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap43.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.95 | ||
| Fwd PE | 16.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.45
PEG (5Y)5.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.37% | ||
| ROE | 25.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.36% | ||
| PM (TTM) | 20.69% | ||
| GM | 32.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.56%
EPS 3Y16.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.72%
Revenue growth 3Y9.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y