TE CONNECTIVITY PLC (TEL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEL - IE000IVNQZ81 - Common Stock
241.45 USD
-0.47 (-0.19%)
TEL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 125 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 would make TEL suitable 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.
- TEL had positive earnings in each 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 7.34%, TEL belongs to the top of the industry, outperforming 86.40% of the companies in the same industry.
- TEL has a better Return On Equity (14.64%) than 82.40% of its industry peers.
- TEL has a better Return On Invested Capital (13.39%) than 92.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TEL is above the industry average of 8.82%.
- The last Return On Invested Capital (13.39%) for TEL is above the 3 year average (12.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 14.64% | ||
| ROIC | 13.39% |
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 10.67% is amongst the best of the industry. TEL outperforms 85.60% of its industry peers.
- TEL's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 19.60%, TEL belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
- TEL's Operating Margin has improved in the last couple of years.
- The Gross Margin of TEL (35.22%) is comparable to the rest of the industry.
- TEL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.6% | ||
| PM (TTM) | 10.67% | ||
| GM | 35.22% |
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.
- The number of shares outstanding for TEL has been reduced compared to 1 year ago.
- The number of shares outstanding for TEL has been reduced compared to 5 years ago.
- The debt/assets ratio for TEL is higher compared to a year ago.
2.2 Solvency
- TEL has an Altman-Z score of 5.46. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.46, TEL is in the better half of the industry, outperforming 72.80% of the companies in the same industry.
- TEL has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
- TEL's Debt to FCF ratio of 1.78 is fine compared to the rest of the industry. TEL outperforms 80.00% of its industry peers.
- A Debt/Equity ratio of 0.38 indicates that TEL is not too dependend on debt financing.
- The Debt to Equity ratio of TEL (0.38) is worse than 62.40% of its industry peers.
- 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 | 0.38 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 5.46 |
ROIC/WACC1.89
WACC7.08%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that TEL should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.56, TEL is doing worse than 72.80% of the companies in the same industry.
- A Quick Ratio of 1.03 indicates that TEL should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.03, TEL is doing worse than 75.20% of the companies in the same industry.
- 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 | 1.56 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- TEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.87%, which is quite good.
- Measured over the past years, TEL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.56% on average per year.
- TEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.94%.
- Measured over the past years, TEL shows a small growth in Revenue. The Revenue has been growing by 7.24% on average per year.
EPS 1Y (TTM)15.87%
EPS 3Y6.22%
EPS 5Y15.56%
EPS Q2Q%25.13%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y1.97%
Revenue growth 5Y7.24%
Sales Q2Q%16.74%
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.
- TEL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.76% yearly.
EPS Next Y23.82%
EPS Next 2Y17.67%
EPS Next 3Y14.88%
EPS Next 5Y13.77%
Revenue Next Year12.56%
Revenue Next 2Y9.95%
Revenue Next 3Y8.49%
Revenue Next 5Y8.76%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- With a Price/Earnings ratio of 27.56, TEL can be considered very expensive at the moment.
- 68.00% of the companies in the same industry are more expensive than TEL, based on the Price/Earnings ratio.
- TEL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 22.26, which indicates a rather expensive current valuation of TEL.
- 72.80% of the companies in the same industry are more expensive than TEL, based on the Price/Forward Earnings ratio.
- TEL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.56 | ||
| Fwd PE | 22.26 |
4.2 Price Multiples
- 69.60% of the companies in the same industry are more expensive than TEL, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, TEL is valued cheaper than 81.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 17.91 |
4.3 Compensation for Growth
- The 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 14.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)1.77
EPS Next 2Y17.67%
EPS Next 3Y14.88%
5. Dividend
5.1 Amount
- TEL has a Yearly Dividend Yield of 1.25%.
- TEL's Dividend Yield is rather good when compared to the industry average which is at 0.47. TEL pays more dividend than 88.80% of the companies in the same industry.
- TEL's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
- The dividend of TEL is nicely growing with an annual growth rate of 7.56%!
- 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)7.56%
Div Incr Years14
Div Non Decr Years17
5.3 Sustainability
- 43.59% of the earnings are spent on dividend by TEL. This is a bit on the high side, but may be sustainable.
- The dividend of TEL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.59%
EPS Next 2Y17.67%
EPS Next 3Y14.88%
NYSE:TEL (1/16/2026, 12:50:57 PM)
241.45
-0.47 (-0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)01-21 2026-01-21/bmo
Inst Owners93.2%
Inst Owner Change0.28%
Ins Owners0.12%
Ins Owner Change-8.15%
Market Cap71.03B
Revenue(TTM)17.26B
Net Income(TTM)1.84B
Analysts79.2
Price Target273.21 (13.15%)
Short Float %1.76%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend2.7
Dividend Growth(5Y)7.56%
DP43.59%
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)7.07%
Min EPS beat(2)5.72%
Max EPS beat(2)8.43%
EPS beat(4)4
Avg EPS beat(4)5.56%
Min EPS beat(4)2.19%
Max EPS beat(4)8.43%
EPS beat(8)7
Avg EPS beat(8)3.79%
EPS beat(12)11
Avg EPS beat(12)3.34%
EPS beat(16)14
Avg EPS beat(16)3.67%
Revenue beat(2)2
Avg Revenue beat(2)3.29%
Min Revenue beat(2)2.57%
Max Revenue beat(2)4.01%
Revenue beat(4)3
Avg Revenue beat(4)1.8%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)4.01%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)6
Avg Revenue beat(12)0.54%
Revenue beat(16)10
Avg Revenue beat(16)1.17%
PT rev (1m)0.35%
PT rev (3m)20.81%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)18.05%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)12.26%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)4.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.56 | ||
| Fwd PE | 22.26 | ||
| P/S | 4.11 | ||
| P/FCF | 22.18 | ||
| P/OCF | 17.16 | ||
| P/B | 5.64 | ||
| P/tB | 21.98 | ||
| EV/EBITDA | 17.91 |
EPS(TTM)8.76
EY3.63%
EPS(NY)10.85
Fwd EY4.49%
FCF(TTM)10.89
FCFY4.51%
OCF(TTM)14.07
OCFY5.83%
SpS58.68
BVpS42.78
TBVpS10.99
PEG (NY)1.16
PEG (5Y)1.77
Graham Number91.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 14.64% | ||
| ROCE | 16.95% | ||
| ROIC | 13.39% | ||
| ROICexc | 14.29% | ||
| ROICexgc | 28.58% | ||
| OM | 19.6% | ||
| PM (TTM) | 10.67% | ||
| GM | 35.22% | ||
| FCFM | 18.56% |
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-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 111.7% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 99.53 | ||
| Cash Conversion | 98.03% | ||
| Profit Quality | 173.89% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 5.46 |
F-Score5
WACC7.08%
ROIC/WACC1.89
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)15.87%
EPS 3Y6.22%
EPS 5Y15.56%
EPS Q2Q%25.13%
EPS Next Y23.82%
EPS Next 2Y17.67%
EPS Next 3Y14.88%
EPS Next 5Y13.77%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y1.97%
Revenue growth 5Y7.24%
Sales Q2Q%16.74%
Revenue Next Year12.56%
Revenue Next 2Y9.95%
Revenue Next 3Y8.49%
Revenue Next 5Y8.76%
EBIT growth 1Y13.44%
EBIT growth 3Y4.78%
EBIT growth 5Y14.36%
EBIT Next Year50.9%
EBIT Next 3Y19.91%
EBIT Next 5Y16.14%
FCF growth 1Y14.52%
FCF growth 3Y23.51%
FCF growth 5Y17.47%
OCF growth 1Y19.04%
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 5 / 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 27.56 and the Price/Book (PB) ratio is 5.64.
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 43.59%.