(TEL) TE Connectivity - Overview
Stock: Connectors, Sensors, Cables, Antennas, Relays
| Risk 5d forecast | |
|---|---|
| Volatility | 29.0% |
| Relative Tail Risk | -4.40% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.37 |
| Alpha | 36.93 |
| Character TTM | |
|---|---|
| Beta | 1.257 |
| Beta Downside | 1.532 |
| Drawdowns 3y | |
|---|---|
| Max DD | 22.60% |
| CAGR/Max DD | 1.13 |
EPS (Earnings per Share)
Revenue
Description: TEL TE Connectivity January 28, 2026
TE Connectivity plc (NYSE: TEL) designs, manufactures, and sells a broad portfolio of connectivity and sensor products-including connectors, cable assemblies, antennas, and EMI/EMC solutions-through two primary segments: Transportation Solutions and Industrial Solutions. The company serves a diversified end-market base that spans 5G infrastructure, automotive (including e-mobility), data centers, aerospace, medical devices, and industrial automation.
Recent financials show FY 2025 revenue of $15.3 billion, a 5 % year-over-year increase driven largely by higher demand in the Transportation Solutions segment (+7 % YoY) and robust growth in the Industrial Solutions segment’s data-center and AI-related sensor offerings (+6 % YoY). Operating margin improved to 13.2 % from 12.5 % in FY 2024, reflecting better pricing power and cost-discipline amid ongoing supply-chain tightening for specialty plastics.
Key macro drivers include the accelerated rollout of 5G networks worldwide (global 5G subscriptions projected to exceed 4 billion by 2027) and the rapid electrification of vehicle fleets, which together are expected to lift demand for high-performance connectors and thermal-management solutions. Conversely, a lingering semiconductor shortage and higher raw-material costs remain material risks to margin expansion.
For analysts seeking a deeper, data-driven view of TEL’s valuation dynamics, a quick look at ValueRay’s sector-adjusted discounted cash-flow model can surface hidden upside or downside scenarios worth exploring.
Piotroski VR‑10 (Strict, 0-10) 8.0
| Net Income: 2.06b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -0.65 > 1.0 |
| NWC/Revenue: 18.41% < 20% (prev 19.22%; Δ -0.81% < -1%) |
| CFO/TA 0.16 > 3% & CFO 4.13b > Net Income 2.06b |
| Net Debt (4.46b) to EBITDA (4.47b): 1.00 < 3 |
| Current Ratio: 1.65 > 1.5 & < 3 |
| Outstanding Shares: last quarter (297.0m) vs 12m ago -1.33% < -2% |
| Gross Margin: 34.95% > 18% (prev 0.35%; Δ 3460 % > 0.5%) |
| Asset Turnover: 74.69% > 50% (prev 70.63%; Δ 4.06% > 0%) |
| Interest Coverage Ratio: 35.25 > 6 (EBITDA TTM 4.47b / Interest Expense TTM 101.0m) |
Altman Z'' 4.95
| A: 0.13 (Total Current Assets 8.37b - Total Current Liabilities 5.07b) / Total Assets 25.55b |
| B: 0.57 (Retained Earnings 14.54b / Total Assets 25.55b) |
| C: 0.15 (EBIT TTM 3.56b / Avg Total Assets 24.00b) |
| D: 1.19 (Book Value of Equity 14.75b / Total Liabilities 12.42b) |
| Altman-Z'' Score: 4.95 = AAA |
Beneish M -2.97
| DSRI: 1.05 (Receivables 3.47b/2.91b, Revenue 17.92b/15.85b) |
| GMI: 0.99 (GM 34.95% / 34.70%) |
| AQI: 1.01 (AQ_t 0.50 / AQ_t-1 0.50) |
| SGI: 1.13 (Revenue 17.92b / 15.85b) |
| TATA: -0.08 (NI 2.06b - CFO 4.13b) / TA 25.55b) |
| Beneish M-Score: -2.97 (Cap -4..+1) = A |
What is the price of TEL shares?
Over the past week, the price has changed by -0.19%, over one month by +1.77%, over three months by +6.91% and over the past year by +55.42%.
Is TEL a buy, sell or hold?
- StrongBuy: 10
- Buy: 1
- Hold: 8
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the TEL price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 275.4 | 17.3% |
| Analysts Target Price | 275.4 | 17.3% |
TEL Fundamental Data Overview February 21, 2026
P/E Forward = 23.4742
P/S = 3.77
P/B = 5.251
P/EG = 3.333
Revenue TTM = 17.92b USD
EBIT TTM = 3.56b USD
EBITDA TTM = 4.47b USD
Long Term Debt = 4.86b USD (from longTermDebt, last quarter)
Short Term Debt = 852.0m USD (from shortTermDebt, last quarter)
Debt = 5.71b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.46b USD (from netDebt column, last quarter)
Enterprise Value = 72.67b USD (68.22b + Debt 5.71b - CCE 1.25b)
Interest Coverage Ratio = 35.25 (Ebit TTM 3.56b / Interest Expense TTM 101.0m)
EV/FCF = 23.17x (Enterprise Value 72.67b / FCF TTM 3.14b)
FCF Yield = 4.32% (FCF TTM 3.14b / Enterprise Value 72.67b)
FCF Margin = 17.50% (FCF TTM 3.14b / Revenue TTM 17.92b)
Net Margin = 11.52% (Net Income TTM 2.06b / Revenue TTM 17.92b)
Gross Margin = 34.95% ((Revenue TTM 17.92b - Cost of Revenue TTM 11.66b) / Revenue TTM)
Gross Margin QoQ = 37.25% (prev 32.01%)
Tobins Q-Ratio = 2.84 (Enterprise Value 72.67b / Total Assets 25.55b)
Interest Expense / Debt = 0.53% (Interest Expense 30.0m / Debt 5.71b)
Taxrate = 21.96% (211.0m / 961.0m)
NOPAT = 2.78b (EBIT 3.56b * (1 - 21.96%))
Current Ratio = 1.65 (Total Current Assets 8.37b / Total Current Liabilities 5.07b)
Debt / Equity = 0.44 (Debt 5.71b / totalStockholderEquity, last quarter 12.99b)
Debt / EBITDA = 1.00 (Net Debt 4.46b / EBITDA 4.47b)
Debt / FCF = 1.42 (Net Debt 4.46b / FCF TTM 3.14b)
Total Stockholder Equity = 12.51b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.60% (Net Income 2.06b / Total Assets 25.55b)
RoE = 16.50% (Net Income TTM 2.06b / Total Stockholder Equity 12.51b)
RoCE = 20.50% (EBIT 3.56b / Capital Employed (Equity 12.51b + L.T.Debt 4.86b))
RoIC = 15.28% (NOPAT 2.78b / Invested Capital 18.19b)
WACC = 9.60% (E(68.22b)/V(73.93b) * Re(10.37%) + D(5.71b)/V(73.93b) * Rd(0.53%) * (1-Tc(0.22)))
Discount Rate = 10.37% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.59%
[DCF Debug] Terminal Value 74.73% ; FCFF base≈3.04b ; Y1≈3.50b ; Y5≈4.90b
Fair Price DCF = 201.6 (EV 63.62b - Net Debt 4.46b = Equity 59.16b / Shares 293.4m; r=9.60% [WACC]; 5y FCF grow 17.55% → 2.90% )
EPS Correlation: -14.30 | EPS CAGR: 11.47% | SUE: 0.79 | # QB: 0
Revenue Correlation: 48.35 | Revenue CAGR: 4.16% | SUE: 1.26 | # QB: 1
EPS next Quarter (2026-03-31): EPS=2.68 | Chg30d=+0.067 | Revisions Net=+10 | Analysts=15
EPS current Year (2026-09-30): EPS=11.06 | Chg30d=+0.339 | Revisions Net=+17 | Growth EPS=+26.3% | Growth Revenue=+12.6%
EPS next Year (2027-09-30): EPS=12.37 | Chg30d=+0.337 | Revisions Net=+15 | Growth EPS=+11.8% | Growth Revenue=+7.8%