TE CONNECTIVITY PLC (TEL) Stock Fundamental Analysis
NYSE:TEL • IE000IVNQZ81
232.79 USD
+1.1 (+0.47%)
Last: Feb 20, 2026, 02:52 PM
Overall TEL gets a fundamental rating of 7 out of 10. We evaluated TEL against 122 industry peers in the Electronic Equipment, Instruments & Components industry. TEL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TEL has a correct valuation and a medium growth rate. Finally TEL also has an excellent dividend rating. This makes TEL very considerable for dividend and quality investing!
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.
- 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 87.70% of its industry peers.
- TEL's Return On Equity of 15.89% is amongst the best of the industry. TEL outperforms 85.25% of its industry peers.
- TEL has a better Return On Invested Capital (13.94%) than 92.62% of its industry peers.
- TEL had an Average Return On Invested Capital over the past 3 years of 12.89%. This is above the industry average of 8.80%.
- 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
- With an excellent Profit Margin value of 11.41%, TEL belongs to the best of the industry, outperforming 87.70% of the companies in the same industry.
- In the last couple of years the Profit Margin of TEL has declined.
- With an excellent Operating Margin value of 19.98%, TEL belongs to the best of the industry, outperforming 95.90% of the companies in the same industry.
- 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 56.56% of its industry peers.
- 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. 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.
- 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 a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.38 indicates that TEL is not in any danger for bankruptcy at the moment.
- TEL has a better Altman-Z score (5.38) than 75.41% 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.
- Looking at the Debt to FCF ratio, with a value of 1.82, TEL is in the better half of the industry, outperforming 79.51% of the companies in the same industry.
- TEL has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- TEL has a worse Debt to Equity ratio (0.37) than 61.48% 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 | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.38 |
ROIC/WACC1.94
WACC7.17%
2.3 Liquidity
- TEL has a Current Ratio of 1.65. This is a normal value and indicates that TEL is financially healthy and should not expect problems in meeting 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 69.67% of its industry peers.
- A Quick Ratio of 1.07 indicates that TEL should not have too much problems paying its short term obligations.
- TEL's Quick ratio of 1.07 is on the low side compared to the rest of the industry. TEL is outperformed by 75.41% of its industry peers.
- 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 | 1.65 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
- TEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.25%, which is quite impressive.
- 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
- TEL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.60% yearly.
- 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 Y27.6%
EPS Next 2Y19.35%
EPS Next 3Y16.67%
EPS Next 5Y13.6%
Revenue Next Year13.75%
Revenue Next 2Y10.71%
Revenue Next 3Y9.5%
Revenue Next 5Y8.8%
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.
- 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
- The Price/Earnings ratio is 24.43, which indicates a rather expensive current valuation of TEL.
- Compared to the rest of the industry, the Price/Earnings ratio of TEL indicates a somewhat cheap valuation: TEL is cheaper than 72.13% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.09, TEL is valued at the same level.
- The Price/Forward Earnings ratio is 18.66, which indicates a rather expensive current valuation of TEL.
- TEL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TEL is cheaper than 77.05% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TEL to the average of the S&P500 Index (27.98), we can say TEL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TEL is valued a bit cheaper than the industry average as 72.95% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, TEL is valued cheaper than 82.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.77 | ||
| EV/EBITDA | 16.05 |
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)0.89
PEG (5Y)1.57
EPS Next 2Y19.35%
EPS Next 3Y16.67%
5. Dividend
5.1 Amount
- TEL has a Yearly Dividend Yield of 1.26%.
- TEL's Dividend Yield is rather good when compared to the industry average which is at 0.49. TEL pays more dividend than 90.98% of the companies in the same industry.
- TEL's Dividend Yield is slightly below the S&P500 average, which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.55%
Div Incr Years14
Div Non Decr Years17
5.3 Sustainability
- TEL pays out 39.87% 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.
DP39.87%
EPS Next 2Y19.35%
EPS Next 3Y16.67%
NYSE:TEL (2/20/2026, 2:52:58 PM)
232.79
+1.1 (+0.47%)
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 Owners93.2%
Inst Owner Change0.77%
Ins Owners0.12%
Ins Owner Change-8.13%
Market Cap68.31B
Revenue(TTM)18.09B
Net Income(TTM)2.06B
Analysts79.26
Price Target275.88 (18.51%)
Short Float %1.96%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)0.98%
PT rev (3m)17.83%
EPS NQ rev (1m)1.92%
EPS NQ rev (3m)2.03%
EPS NY rev (1m)3.06%
EPS NY rev (3m)5.73%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.43 | ||
| Fwd PE | 18.66 | ||
| P/S | 3.77 | ||
| P/FCF | 21.77 | ||
| P/OCF | 16.56 | ||
| P/B | 5.26 | ||
| P/tB | 18.72 | ||
| EV/EBITDA | 16.05 |
EPS(TTM)9.53
EY4.09%
EPS(NY)12.48
Fwd EY5.36%
FCF(TTM)10.69
FCFY4.59%
OCF(TTM)14.06
OCFY6.04%
SpS61.67
BVpS44.26
TBVpS12.43
PEG (NY)0.89
PEG (5Y)1.57
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 | 5.38 |
F-Score6
WACC7.17%
ROIC/WACC1.94
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 Y27.6%
EPS Next 2Y19.35%
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 2Y10.71%
Revenue Next 3Y9.5%
Revenue Next 5Y8.8%
EBIT growth 1Y20.46%
EBIT growth 3Y4.78%
EBIT growth 5Y14.36%
EBIT Next Year54.03%
EBIT Next 3Y21.65%
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 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 24.43 and the Price/Book (PB) ratio is 5.26.
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 39.87%.