(TEL) TE Connectivity - Overview
Sector: Technology | Industry: Electronic Components | Exchange: NYSE (USA) | Market Cap: 59.871m USD | Total Return: 25.4% in 12m
Industry Rotation: -5.3
Avg Turnover: 602M
EPS Trend: 26.0%
Qual. Beats: 0
Rev. Trend: 73.6%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
Confidence
TE Connectivity Ltd. is an Ireland-based manufacturer specializing in connectivity and sensor solutions across global markets. The company operates through two primary segments, Transportation Solutions and Industrial Solutions, producing a vast range of hardware including connectors, fiber optics, and sensors for high-growth sectors like 5G, medical technology, and e-mobility.
The business model relies on deep integration into the supply chains of original equipment manufacturers (OEMs), where high switching costs and rigorous engineering standards provide a competitive moat. As an Electronic Manufacturing Services provider, TE Connectivity benefits from the increasing electronic content in modern vehicles and the expansion of data center infrastructure required for artificial intelligence.
For a deeper look into the companys valuation metrics and historical performance, consider exploring the data available on ValueRay.
- Electric vehicle adoption accelerates demand for high-voltage connector and sensor content
- Data center infrastructure expansion drives high-speed connectivity revenue for AI workloads
- Automotive production volume fluctuations impact core Transportation Solutions segment profitability
- Global industrial automation investment levels determine long-term growth in Industrial Solutions
- Fluctuating raw material costs for copper and gold influence manufacturing operating margins
| Net Income: 2.91b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 1.45 > 1.0 |
| NWC/Revenue: 20.93% < 20% (prev 19.19%; Δ 1.74% < -1%) |
| CFO/TA 0.17 > 3% & CFO 4.42b > Net Income 2.91b |
| Net Debt (4.54b) to EBITDA (4.46b): 1.02 < 3 |
| Current Ratio: 1.89 > 1.5 & < 3 |
| Outstanding Shares: last quarter (295.0m) vs 12m ago -1.67% < -2% |
| Gross Margin: 35.36% > 18% (prev 0.35%; Δ 3.50k% > 0.5%) |
| Asset Turnover: 75.09% > 50% (prev 67.75%; Δ 7.34% > 0%) |
| Interest Coverage Ratio: 23.45 > 6 (EBITDA TTM 4.46b / Interest Expense TTM 119.0m) |
| A: 0.15 (Total Current Assets 8.24b - Total Current Liabilities 4.37b) / Total Assets 25.68b |
| B: 0.54 (Retained Earnings 13.90b / Total Assets 25.68b) |
| C: 0.11 (EBIT TTM 2.79b / Avg Total Assets 24.67b) |
| D: 1.08 (Book Value of Equity 13.23b / Total Liabilities 12.30b) |
| Altman-Z'' Score: 4.65 = AA |
| DSRI: 0.94 (Receivables 3.45b/3.19b, Revenue 18.52b/16.03b) |
| GMI: 0.99 (GM 35.36% / 34.92%) |
| AQI: 1.12 (AQ_t 0.50 / AQ_t-1 0.45) |
| SGI: 1.16 (Revenue 18.52b / 16.03b) |
| TATA: -0.06 (NI 2.91b - CFO 4.42b) / TA 25.68b) |
| Beneish M-Score: -2.97 (Cap -4..+1) = A |
Over the past week, the price has changed by -3.02%, over one month by -18.68%, over three months by -14.20% and over the past year by +25.42%.
- StrongBuy: 10
- Buy: 1
- Hold: 8
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 264.5 | 31.3% |
P/E Forward = 18.3486
P/S = 3.2023
P/B = 4.5481
P/EG = 1.0692
Revenue TTM = 18.52b USD
EBIT TTM = 2.79b USD
EBITDA TTM = 4.46b USD
Long Term Debt = 5.55b USD (from longTermDebt, last quarter)
Short Term Debt = 102.0m USD (from shortTermDebt, last quarter)
Debt = 5.66b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.54b USD (from netDebt column, last quarter)
Enterprise Value = 64.42b USD (59.87b + Debt 5.66b - CCE 1.11b)
Interest Coverage Ratio = 23.45 (Ebit TTM 2.79b / Interest Expense TTM 119.0m)
EV/FCF = 19.00x (Enterprise Value 64.42b / FCF TTM 3.39b)
FCF Yield = 5.26% (FCF TTM 3.39b / Enterprise Value 64.42b)
FCF Margin = 18.31% (FCF TTM 3.39b / Revenue TTM 18.52b)
Net Margin = 15.69% (Net Income TTM 2.91b / Revenue TTM 18.52b)
Gross Margin = 35.36% ((Revenue TTM 18.52b - Cost of Revenue TTM 11.97b) / Revenue TTM)
Gross Margin QoQ = 36.78% (prev 37.25%)
Tobins Q-Ratio = 2.51 (Enterprise Value 64.42b / Total Assets 25.68b)
Interest Expense / Debt = 0.57% (Interest Expense 32.0m / Debt 5.66b)
Taxrate = 9.24% (87.0m / 942.0m)
NOPAT = 2.53b (EBIT 2.79b * (1 - 9.24%))
Current Ratio = 1.89 (Total Current Assets 8.24b / Total Current Liabilities 4.37b)
Debt / Equity = 0.43 (Debt 5.66b / totalStockholderEquity, last quarter 13.23b)
Debt / EBITDA = 1.02 (Net Debt 4.54b / EBITDA 4.46b)
Debt / FCF = 1.34 (Net Debt 4.54b / FCF TTM 3.39b)
Total Stockholder Equity = 12.80b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.78% (Net Income 2.91b / Total Assets 25.68b)
RoE = 22.71% (Net Income TTM 2.91b / Total Stockholder Equity 12.80b)
RoCE = 15.21% (EBIT 2.79b / Capital Employed (Equity 12.80b + L.T.Debt 5.55b))
RoIC = 13.70% (NOPAT 2.53b / Invested Capital 18.49b)
WACC = 9.83% (E(59.87b)/V(65.53b) * Re(10.71%) + D(5.66b)/V(65.53b) * Rd(0.57%) * (1-Tc(0.09)))
Discount Rate = 10.71% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -2.60%
[DCF] Terminal Value 75.11% ; FCFF base≈3.15b ; Y1≈3.72b ; Y5≈5.72b
[DCF] Fair Price = 230.8 (EV 71.93b - Net Debt 4.54b = Equity 67.38b / Shares 291.9m; r=9.83% [WACC]; 5y FCF grow 19.22% → 3.0% )
EPS Correlation: 26.00 | EPS CAGR: 4.28% | SUE: 0.08 | # QB: 0
Revenue Correlation: 73.65 | Revenue CAGR: 4.42% | SUE: -0.16 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.84 | Chg30d=+2.35% | Revisions=+75% | Analysts=14
EPS current Year (2026-09-30): EPS=11.24 | Chg30d=+1.58% | Revisions=+80% | GrowthEPS=+28.3% | GrowthRev=+13.5%
EPS next Year (2027-09-30): EPS=12.62 | Chg30d=+2.04% | Revisions=+70% | GrowthEPS=+12.3% | GrowthRev=+8.3%
[Analyst] Revisions Ratio: +80%