TE CONNECTIVITY PLC (TEL) Fundamental Analysis & Valuation

NYSE:TEL • IE000IVNQZ81

Current stock price

195.84 USD
-2.55 (-1.29%)
At close:
195.84 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.

8

1. TEL Profitability Analysis

1.1 Basic Checks

  • TEL had positive earnings in the past year.
  • In the past year TEL had a positive cash flow from operations.
  • TEL had positive earnings in each of the past 5 years.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • TEL has a better Return On Assets (8.08%) than 85.48% of its industry peers.
  • The Return On Equity of TEL (15.89%) is better than 85.48% of its industry peers.
  • 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 8.58%.
  • 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 RankSector 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%
TEL Yearly ROA, ROE, ROICTEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20 25

1.3 Margins

  • The Profit Margin of TEL (11.41%) is better than 85.48% 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 96.77% of its industry peers.
  • TEL's Operating Margin has improved in the last couple of years.
  • TEL's Gross Margin of 35.69% is in line compared to the rest of the industry. TEL outperforms 56.45% of its industry peers.
  • In the last couple of years the Gross Margin of TEL has grown nicely.
Industry RankSector 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%
TEL Yearly Profit, Operating, Gross MarginsTEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

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8

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.
TEL Yearly Shares OutstandingTEL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
TEL Yearly Total Debt VS Total AssetsTEL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • TEL has an Altman-Z score of 4.87. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
  • TEL's Altman-Z score of 4.87 is fine compared to the rest of the industry. TEL outperforms 67.74% of its industry peers.
  • 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.
  • TEL's Debt to FCF ratio of 1.82 is amongst the best of the industry. TEL outperforms 80.65% of its industry peers.
  • A Debt/Equity ratio of 0.37 indicates that TEL is not too dependend on debt financing.
  • TEL has a worse Debt to Equity ratio (0.37) than 65.32% 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 RankSector Rank
Debt/Equity 0.37
Debt/FCF 1.82
Altman-Z 4.87
ROIC/WACC1.96
WACC7.13%
TEL Yearly LT Debt VS Equity VS FCFTEL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.65 indicates that TEL should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.65, TEL is doing worse than 70.97% of the companies in the same industry.
  • 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 77.42% of its industry peers.
  • 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 RankSector Rank
Current Ratio 1.65
Quick Ratio 1.07
TEL Yearly Current Assets VS Current LiabilitesTEL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. TEL Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 24.25% over the past year.
  • The Earnings Per Share has been growing by 15.56% on average over the past years. This is quite good.
  • TEL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.16%.
  • 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)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

  • The Earnings Per Share is expected to grow by 13.60% on average over the next years. This is quite good.
  • TEL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.80% yearly.
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.
TEL Yearly Revenue VS EstimatesTEL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
TEL Yearly EPS VS EstimatesTEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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6

4. TEL Valuation Analysis

4.1 Price/Earnings Ratio

  • TEL is valuated rather expensively with a Price/Earnings ratio of 20.55.
  • Compared to the rest of the industry, the Price/Earnings ratio of TEL indicates a somewhat cheap valuation: TEL is cheaper than 79.03% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (25.23), we can say TEL is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 15.68, the valuation of TEL can be described as correct.
  • Based on the Price/Forward Earnings ratio, TEL is valued a bit cheaper than the industry average as 78.23% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. TEL is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.55
Fwd PE 15.68
TEL Price Earnings VS Forward Price EarningsTEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 73.39% of the companies in the same industry are more expensive than TEL, based on the Enterprise Value to EBITDA ratio.
  • TEL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TEL is cheaper than 83.06% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.32
EV/EBITDA 13.68
TEL Per share dataTEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • TEL has an outstanding profitability rating, which 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)0.74
PEG (5Y)1.32
EPS Next 2Y19.41%
EPS Next 3Y16.67%

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8

5. TEL Dividend Analysis

5.1 Amount

  • TEL has a Yearly Dividend Yield of 1.57%.
  • Compared to an average industry Dividend Yield of 0.46, TEL pays a better dividend. On top of this TEL pays more dividend than 92.74% of the companies listed in the same industry.
  • TEL's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector 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 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
TEL Yearly Dividends per shareTEL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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 2Y19.41%
EPS Next 3Y16.67%
TEL Yearly Income VS Free CF VS DividendTEL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B
TEL Dividend Payout.TEL Dividend Payout, showing the Payout Ratio.TEL Dividend Payout.PayoutRetained Earnings

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TEL Fundamentals: All Metrics, Ratios and Statistics

TE CONNECTIVITY PLC

NYSE:TEL (3/20/2026, 8:24:48 PM)

After market: 195.84 0 (0%)

195.84

-2.55 (-1.29%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)01-21
Earnings (Next)04-21
Inst Owners93.41%
Inst Owner Change0.94%
Ins Owners0.12%
Ins Owner Change-8.96%
Market Cap57.47B
Revenue(TTM)18.09B
Net Income(TTM)2.06B
Analysts79.26
Price Target276.65 (41.26%)
Short Float %2.42%
Short Ratio3.12
Dividend
Industry RankSector 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
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 RankSector Rank
PE 20.55
Fwd PE 15.68
P/S 3.18
P/FCF 18.32
P/OCF 13.93
P/B 4.42
P/tB 15.75
EV/EBITDA 13.68
EPS(TTM)9.53
EY4.87%
EPS(NY)12.49
Fwd EY6.38%
FCF(TTM)10.69
FCFY5.46%
OCF(TTM)14.06
OCFY7.18%
SpS61.67
BVpS44.26
TBVpS12.43
PEG (NY)0.74
PEG (5Y)1.32
Graham Number97.42
Profitability
Industry RankSector 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 RankSector 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 4.87
F-Score6
WACC7.13%
ROIC/WACC1.96
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 20.55 and the Price/Book (PB) ratio is 4.42.


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%.