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TE CONNECTIVITY PLC (TEL) Stock Fundamental Analysis

NYSE:TEL - New York Stock Exchange, Inc. - IE000IVNQZ81 - Common Stock - Currency: USD

174.29  +0.88 (+0.51%)

After market: 174.29 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TEL. TEL was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. While TEL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TEL has a decent growth rate and is not valued too expensively. Finally TEL also has an excellent dividend rating. With these ratings, TEL could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

TEL had positive earnings in the past year.
In the past year TEL had a positive cash flow from operations.
Of the past 5 years TEL 4 years were profitable.
Each year in the past 5 years TEL had a positive operating cash flow.
TEL Yearly Net Income VS EBIT VS OCF VS FCFTEL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

1.2 Ratios

TEL's Return On Assets of 5.88% is fine compared to the rest of the industry. TEL outperforms 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 11.50%, TEL belongs to the top of the industry, outperforming 81.60% of the companies in the same industry.
TEL has a better Return On Invested Capital (14.59%) than 92.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TEL is above the industry average of 9.30%.
The last Return On Invested Capital (14.59%) for TEL is above the 3 year average (14.05%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.88%
ROE 11.5%
ROIC 14.59%
ROA(3y)11.48%
ROA(5y)8.75%
ROE(3y)21.62%
ROE(5y)16.71%
ROIC(3y)14.05%
ROIC(5y)12.99%
TEL Yearly ROA, ROE, ROICTEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20 25

1.3 Margins

With an excellent Profit Margin value of 8.67%, TEL belongs to the best of the industry, outperforming 82.40% of the companies in the same industry.
TEL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 19.14%, TEL belongs to the best of the industry, outperforming 97.60% of the companies in the same industry.
In the last couple of years the Operating Margin of TEL has grown nicely.
With a Gross Margin value of 34.87%, TEL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of TEL has remained more or less at the same level.
Industry RankSector Rank
OM 19.14%
PM (TTM) 8.67%
GM 34.87%
OM growth 3Y1.36%
OM growth 5Y2.3%
PM growth 3Y9.97%
PM growth 5Y8%
GM growth 3Y1.69%
GM growth 5Y1.05%
TEL Yearly Profit, Operating, Gross MarginsTEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
The debt/assets ratio for TEL has been reduced compared to a year ago.
TEL Yearly Shares OutstandingTEL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
TEL Yearly Total Debt VS Total AssetsTEL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

An Altman-Z score of 4.70 indicates that TEL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.70, TEL is doing good in the industry, outperforming 71.20% of the companies in the same industry.
The Debt to FCF ratio of TEL is 2.02, which is a good value as it means it would take TEL, 2.02 years of fcf income to pay off all of its debts.
TEL's Debt to FCF ratio of 2.02 is fine compared to the rest of the industry. TEL outperforms 77.60% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that TEL is not too dependend on debt financing.
TEL has a Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.02
Altman-Z 4.7
ROIC/WACC2.07
WACC7.04%
TEL Yearly LT Debt VS Equity VS FCFTEL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 1.51 indicates that TEL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.51, TEL is not doing good in the industry: 75.20% of the companies in the same industry are doing better.
TEL has a Quick Ratio of 1.08. 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 1.08, TEL is doing worse than 76.80% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.51
Quick Ratio 1.08
TEL Yearly Current Assets VS Current LiabilitesTEL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

5

3. Growth

3.1 Past

TEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.10%, which is quite good.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.41% yearly.
The Revenue has been growing slightly by 1.23% in the past year.
Measured over the past years, TEL shows a small growth in Revenue. The Revenue has been growing by 3.33% on average per year.
EPS 1Y (TTM)9.1%
EPS 3Y5.06%
EPS 5Y6.41%
EPS Q2Q%12.9%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y2.02%
Revenue growth 5Y3.33%
Sales Q2Q%4.44%

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 9.06% yearly.
The Revenue is expected to grow by 5.97% on average over the next years.
EPS Next Y9.78%
EPS Next 2Y9.59%
EPS Next 3Y9.82%
EPS Next 5Y9.06%
Revenue Next Year5.57%
Revenue Next 2Y6.42%
Revenue Next 3Y6.19%
Revenue Next 5Y5.97%

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.
TEL Yearly Revenue VS EstimatesTEL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
TEL Yearly EPS VS EstimatesTEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

5

4. Valuation

4.1 Price/Earnings Ratio

TEL is valuated rather expensively with a Price/Earnings ratio of 22.03.
Based on the Price/Earnings ratio, TEL is valued a bit cheaper than 74.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (27.45), we can say TEL is valued inline with the index average.
The Price/Forward Earnings ratio is 19.20, which indicates a rather expensive current valuation of TEL.
Based on the Price/Forward Earnings ratio, TEL is valued a bit cheaper than 72.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TEL to the average of the S&P500 Index (21.90), we can say TEL is valued inline with the index average.
Industry RankSector Rank
PE 22.03
Fwd PE 19.2
TEL Price Earnings VS Forward Price EarningsTEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 75.20% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TEL is valued cheaper than 83.20% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.58
EV/EBITDA 14.09
TEL Per share dataTEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TEL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.25
PEG (5Y)3.43
EPS Next 2Y9.59%
EPS Next 3Y9.82%

7

5. Dividend

5.1 Amount

TEL has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.95, TEL pays a better dividend. On top of this TEL pays more dividend than 91.20% of the companies listed in the same industry.
TEL's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
Industry RankSector Rank
Dividend Yield 1.68%

5.2 History

The dividend of TEL is nicely growing with an annual growth rate of 6.79%!
TEL has been paying a dividend for at least 10 years, so it has 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)6.79%
Div Incr Years14
Div Non Decr Years17
TEL Yearly Dividends per shareTEL Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

55.90% 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.
DP55.9%
EPS Next 2Y9.59%
EPS Next 3Y9.82%
TEL Yearly Income VS Free CF VS DividendTEL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B
TEL Dividend Payout.TEL Dividend Payout, showing the Payout Ratio.TEL Dividend Payout.PayoutRetained Earnings

TE CONNECTIVITY PLC

NYSE:TEL (7/3/2025, 8:12:16 PM)

After market: 174.29 0 (0%)

174.29

+0.88 (+0.51%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-21 2025-07-21/amc
Inst Owners94.36%
Inst Owner Change1.36%
Ins Owners0.12%
Ins Owner Change-0.48%
Market Cap51.69B
Analysts76.67
Price Target170.08 (-2.42%)
Short Float %1.83%
Short Ratio3.04
Dividend
Industry RankSector Rank
Dividend Yield 1.68%
Yearly Dividend2.48
Dividend Growth(5Y)6.79%
DP55.9%
Div Incr Years14
Div Non Decr Years17
Ex-Date05-21 2025-05-21 (0.71)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.04%
Min EPS beat(2)2.19%
Max EPS beat(2)5.89%
EPS beat(4)3
Avg EPS beat(4)2.25%
Min EPS beat(4)-0.77%
Max EPS beat(4)5.89%
EPS beat(8)7
Avg EPS beat(8)2.76%
EPS beat(12)10
Avg EPS beat(12)2.59%
EPS beat(16)14
Avg EPS beat(16)3.68%
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)3.34%
Revenue beat(4)2
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)3.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.77%
Revenue beat(12)6
Avg Revenue beat(12)0.53%
Revenue beat(16)10
Avg Revenue beat(16)0.88%
PT rev (1m)1.82%
PT rev (3m)-3.38%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.56%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)4.43%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.93%
Valuation
Industry RankSector Rank
PE 22.03
Fwd PE 19.2
P/S 3.23
P/FCF 18.58
P/OCF 14.44
P/B 4.28
P/tB 10.29
EV/EBITDA 14.09
EPS(TTM)7.91
EY4.54%
EPS(NY)9.08
Fwd EY5.21%
FCF(TTM)9.38
FCFY5.38%
OCF(TTM)12.07
OCFY6.92%
SpS54.04
BVpS40.75
TBVpS16.94
PEG (NY)2.25
PEG (5Y)3.43
Profitability
Industry RankSector Rank
ROA 5.88%
ROE 11.5%
ROCE 17.38%
ROIC 14.59%
ROICexc 17.05%
ROICexgc 32.03%
OM 19.14%
PM (TTM) 8.67%
GM 34.87%
FCFM 17.36%
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 Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.02
Debt/EBITDA 0.84
Cap/Depr 97.43%
Cap/Sales 4.97%
Interest Coverage 250
Cash Conversion 92.1%
Profit Quality 200.14%
Current Ratio 1.51
Quick Ratio 1.08
Altman-Z 4.7
F-Score6
WACC7.04%
ROIC/WACC2.07
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)9.1%
EPS 3Y5.06%
EPS 5Y6.41%
EPS Q2Q%12.9%
EPS Next Y9.78%
EPS Next 2Y9.59%
EPS Next 3Y9.82%
EPS Next 5Y9.06%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y2.02%
Revenue growth 5Y3.33%
Sales Q2Q%4.44%
Revenue Next Year5.57%
Revenue Next 2Y6.42%
Revenue Next 3Y6.19%
Revenue Next 5Y5.97%
EBIT growth 1Y7.54%
EBIT growth 3Y3.4%
EBIT growth 5Y5.71%
EBIT Next Year34%
EBIT Next 3Y15.71%
EBIT Next 5Y11.5%
FCF growth 1Y42.74%
FCF growth 3Y12.09%
FCF growth 5Y10.83%
OCF growth 1Y30.72%
OCF growth 3Y9.12%
OCF growth 5Y7.5%