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TEL

TE Connectivity NYSE:TEL Stock Report

Last Price

US$114.32

Market Cap

US$36.6b

7D

0.8%

1Y

-18.5%

Updated

03 Oct, 2022

Data

Company Financials +
TEL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends5/6

TEL Stock Overview

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the Asia–Pacific, and the Americas.

TE Connectivity Competitors

Price History & Performance

Summary of all time highs, changes and price drops for TE Connectivity
Historical stock prices
Current Share PriceUS$114.32
52 Week HighUS$166.44
52 Week LowUS$107.12
Beta1.31
1 Month Change-7.73%
3 Month Change2.56%
1 Year Change-18.51%
3 Year Change29.18%
5 Year Change32.58%
Change since IPO194.26%

Recent News & Updates

Oct 02
Is It Too Late To Consider Buying TE Connectivity Ltd. (NYSE:TEL)?

Is It Too Late To Consider Buying TE Connectivity Ltd. (NYSE:TEL)?

Let's talk about the popular TE Connectivity Ltd. ( NYSE:TEL ). The company's shares saw significant share price...

Sep 18
TE Connectivity (NYSE:TEL) Shareholders Will Want The ROCE Trajectory To Continue

TE Connectivity (NYSE:TEL) Shareholders Will Want The ROCE Trajectory To Continue

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...

Sep 04
TE Connectivity (NYSE:TEL) Seems To Use Debt Quite Sensibly

TE Connectivity (NYSE:TEL) Seems To Use Debt Quite Sensibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

TELUS ElectronicUS Market
7D0.8%-2.2%-2.5%
1Y-18.5%-24.1%-23.2%

Return vs Industry: TEL exceeded the US Electronic industry which returned -24.1% over the past year.

Return vs Market: TEL exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is TEL's price volatile compared to industry and market?
TEL volatility
TEL Average Weekly Movement4.0%
Electronic Industry Average Movement6.7%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: TEL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TEL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200089,000Terrence Curtinhttps://www.te.com

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the Asia–Pacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, relays, antennas, heat shrink tubing, and application tooling products for use in the automotive, commercial transportation, and sensor markets.

TE Connectivity Fundamentals Summary

How do TE Connectivity's earnings and revenue compare to its market cap?
TEL fundamental statistics
Market CapUS$36.56b
Earnings (TTM)US$2.51b
Revenue (TTM)US$15.74b

14.5x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TEL income statement (TTM)
RevenueUS$15.74b
Cost of RevenueUS$10.57b
Gross ProfitUS$5.17b
Other ExpensesUS$2.66b
EarningsUS$2.51b

Last Reported Earnings

Jun 24, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.86
Gross Margin32.87%
Net Profit Margin15.96%
Debt/Equity Ratio39.9%

How did TEL perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

27%

Payout Ratio

Does TEL pay a reliable dividends?

See TEL dividend history and benchmarks
When do you need to buy TEL by to receive an upcoming dividend?
TE Connectivity dividend dates
Ex Dividend DateNov 17 2022
Dividend Pay DateDec 02 2022
Days until Ex dividend44 days
Days until Dividend pay date59 days

Does TEL pay a reliable dividends?

See TEL dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is TEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TEL?

Other financial metrics that can be useful for relative valuation.

TEL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA10.8x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does TEL's PE Ratio compare to its peers?

TEL PE Ratio vs Peers
The above table shows the PE ratio for TEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.8x
JBL Jabil
8x3.7%US$7.9b
FLEX Flex
8.3x3.9%US$7.6b
IPGP IPG Photonics
15.9x12.4%US$4.2b
FN Fabrinet
17.4xn/aUS$3.5b
TEL TE Connectivity
14x6.5%US$35.3b

Price-To-Earnings vs Peers: TEL is expensive based on its Price-To-Earnings Ratio (14x) compared to the peer average (12.4x).


Price to Earnings Ratio vs Industry

How does TEL's PE Ratio compare vs other companies in the US Electronic Industry?

Price-To-Earnings vs Industry: TEL is good value based on its Price-To-Earnings Ratio (14x) compared to the US Electronic industry average (14.1x)


Price to Earnings Ratio vs Fair Ratio

What is TEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio21.7x

Price-To-Earnings vs Fair Ratio: TEL is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (21.6x).


Share Price vs Fair Value

What is the Fair Price of TEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TEL ($110.36) is trading below our estimate of fair value ($177.8)

Significantly Below Fair Value: TEL is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is TE Connectivity forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEL's forecast earnings growth (6.5% per year) is above the savings rate (1.9%).

Earnings vs Market: TEL's earnings (6.5% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: TEL's earnings are forecast to grow, but not significantly.

Revenue vs Market: TEL's revenue (5.1% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: TEL's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TEL's Return on Equity is forecast to be high in 3 years time (22.6%)


Discover growth companies

Past Performance

How has TE Connectivity performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TEL has high quality earnings.

Growing Profit Margin: TEL's current net profit margins (16%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: TEL's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: TEL's earnings growth over the past year (49.4%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: TEL earnings growth over the past year (49.4%) exceeded the Electronic industry 20.1%.


Return on Equity

High ROE: TEL's Return on Equity (23.8%) is considered high.


Discover strong past performing companies

Financial Health

How is TE Connectivity's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TEL's short term assets ($7.6B) exceed its short term liabilities ($5.1B).

Long Term Liabilities: TEL's short term assets ($7.6B) exceed its long term liabilities ($5.8B).


Debt to Equity History and Analysis

Debt Level: TEL's net debt to equity ratio (32.1%) is considered satisfactory.

Reducing Debt: TEL's debt to equity ratio has reduced from 43.7% to 39.9% over the past 5 years.

Debt Coverage: TEL's debt is well covered by operating cash flow (54.7%).

Interest Coverage: TEL's interest payments on its debt are well covered by EBIT (58.5x coverage).


Balance Sheet


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Dividend

What is TE Connectivity current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.96%

Current Dividend Yield

Upcoming Dividend Payment

TodayOct 03 2022Ex Dividend DateNov 17 2022Dividend Pay DateDec 02 202215 days from Ex DividendBuy in the next 44 days to receive the upcoming dividend

Dividend Yield vs Market

TE Connectivity Dividend Yield vs Market
How does TE Connectivity dividend yield compare to the market?
SegmentDividend Yield
Company (TE Connectivity)2.0%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Electronic)1.8%
Analyst forecast in 3 Years (TE Connectivity)1.9%

Notable Dividend: TEL's dividend (2.03%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: TEL's dividend (2.03%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: TEL's dividends per share have been stable in the past 10 years.

Growing Dividend: TEL's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.6%), TEL's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (47.6%), TEL's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

Terrence Curtin (54 yo)

6.58yrs

Tenure

US$14,715,856

Compensation

Mr. Terrence R. Curtin is the Chief Executive Officer of TE Connectivity Ltd. since March 08, 2017. Mr. Curtin served as the President of TE Connectivity Ltd.since March 10, 2015. He was responsible for a...


CEO Compensation Analysis

Terrence Curtin's Compensation vs TE Connectivity Earnings
How has Terrence Curtin's remuneration changed compared to TE Connectivity's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 24 2022n/an/a

US$3b

Mar 25 2022n/an/a

US$3b

Dec 24 2021n/an/a

US$2b

Sep 24 2021US$15mUS$1m

US$2b

Jun 25 2021n/an/a

US$2b

Mar 26 2021n/an/a

US$1b

Dec 25 2020n/an/a

US$93m

Sep 25 2020US$11mUS$1m

-US$259m

Jun 26 2020n/an/a

-US$111m

Mar 27 2020n/an/a

US$705m

Dec 27 2019n/an/a

US$2b

Sep 27 2019US$9mUS$1m

US$2b

Jun 28 2019n/an/a

US$3b

Mar 29 2019n/an/a

US$3b

Dec 28 2018n/an/a

US$3b

Sep 28 2018US$10mUS$1m

US$3b

Jun 29 2018n/an/a

US$1b

Mar 30 2018n/an/a

US$1b

Dec 29 2017n/an/a

US$1b

Sep 29 2017US$10mUS$1m

US$2b

Jun 30 2017n/an/a

US$2b

Mar 31 2017n/an/a

US$2b

Dec 30 2016n/an/a

US$2b

Sep 30 2016US$5mUS$825k

US$2b

Compensation vs Market: Terrence's total compensation ($USD14.72M) is about average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Terrence's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: TEL's management team is seasoned and experienced (8.8 years average tenure).


Board Members

Experienced Board: TEL's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TEL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NYSE:TEL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
03 Aug 22SellUS$394,590John JenkinsIndividual2,990US$131.97
06 May 22SellUS$1,598,499Thomas LynchIndividual12,600US$126.87

Ownership Breakdown

What is the ownership structure of TEL?
Owner TypeNumber of SharesOwnership Percentage
Private Companies2,6940.0008%
Individual Insiders633,9750.2%
General Public18,118,5005.7%
Institutions301,083,79994.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 64.6% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.7%
The Vanguard Group, Inc.
27,836,048$3.2b0.78%0.07%
7.89%
T. Rowe Price Group, Inc.
25,220,247$2.9b32.51%0.34%
6.5%
BlackRock, Inc.
20,786,708$2.4b-0.75%0.06%
5.99%
Capital Research and Management Company
19,170,241$2.2b-7.13%0.15%
5.34%
Dodge & Cox
17,088,935$2.0b0.17%1.12%
3.72%
State Street Global Advisors, Inc.
11,913,786$1.4b-2.97%0.08%
3.36%
ClearBridge Investments, LLC
10,756,755$1.2b-2.94%1.12%
2.52%
Harris Associates L.P.
8,047,140$919.9m-1.72%1.2%
2.23%
Janus Henderson Group plc
7,128,836$815.0m0.6%0.46%
2.08%
Columbia Management Investment Advisers, LLC
6,655,240$760.8m-12.52%0.22%
1.86%
Norges Bank Investment Management
5,955,866$680.9m0%0.09%
1.6%
Geode Capital Management, LLC
5,113,851$584.6m2.42%0.08%
1.46%
Massachusetts Financial Services Company
4,676,925$534.7m-0.53%0.14%
1.29%
EdgePoint Investment Group Inc.
4,137,596$473.0m16.26%2.75%
1.26%
Wellington Management Group LLP
4,024,617$460.1m-9.95%0.08%
1.25%
Boston Partners Global Investors, Inc.
3,990,038$456.1m-3.48%0.38%
0.96%
Invesco Ltd.
3,059,937$349.8m11.77%0.12%
0.91%
Northern Trust Global Investments
2,895,882$331.1m-1.41%0.07%
0.89%
Impax Asset Management Group plc
2,848,923$325.7m0.5%1.06%
0.89%
First Pacific Advisors, LP
2,833,669$323.9m2.78%3.89%
0.86%
Deutsche Asset & Wealth Management
2,763,352$315.9m-1.54%0.13%
0.81%
Legal & General Investment Management Limited
2,581,294$295.1m-0.39%0.09%
0.75%
Dimensional Fund Advisors LP
2,401,873$274.6m0.51%0.07%
0.74%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
2,380,182$272.1m1.55%0.09%
0.73%
UBS Asset Management
2,343,810$267.9m-4.86%0.05%

Company Information

TE Connectivity Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: TE Connectivity Ltd.
  • Ticker: TEL
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Implied Market Cap: US$36.564b
  • Shares outstanding: 319.84m
  • Website: https://www.te.com

Number of Employees


Location

  • TE Connectivity Ltd.
  • MUehlenstrasse 26
  • Schaffhausen
  • Schaffhausen
  • 8200
  • Switzerland


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TELNYSE (New York Stock Exchange)YesRegistered SharesUSUSDJun 2007
TEL NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJun 2007
T1EL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/24
Annual Earnings2021/09/24


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.