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Market Cap

US$43.3b

Last Updated

2021/04/09 22:14 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has TE Connectivity's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

0.6%

TEL

1.1%

US Electronic

1.6%

US Market


1 Year Return

84.8%

TEL

82.7%

US Electronic

55.3%

US Market

Return vs Industry: TEL exceeded the US Electronic industry which returned 82.7% over the past year.

Return vs Market: TEL exceeded the US Market which returned 55.3% over the past year.


Shareholder returns

TELIndustryMarket
7 Day0.6%1.1%1.6%
30 Day1.1%7.2%4.1%
90 Day0.8%6.8%5.5%
1 Year88.4%84.8%86.6%82.7%58.1%55.3%
3 Year40.6%32.4%67.8%60.9%63.8%53.3%
5 Year129.3%107.2%162.9%146.2%120.2%95.7%

Long-Term Price Volatility Vs. Market

How volatile is TE Connectivity's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TE Connectivity undervalued compared to its fair value and its price relative to the market?

468.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TEL ($131.54) is trading above our estimate of fair value ($107.49)

Significantly Below Fair Value: TEL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TEL is poor value based on its PE Ratio (468.2x) compared to the US Electronic industry average (30x).

PE vs Market: TEL is poor value based on its PE Ratio (468.2x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: TEL is poor value based on its PEG Ratio (28.5x)


Price to Book Ratio

PB vs Industry: TEL is overvalued based on its PB Ratio (4.4x) compared to the US Electronic industry average (2.9x).


Future Growth

How is TE Connectivity forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEL's forecast earnings growth (16.4% per year) is above the savings rate (2%).

Earnings vs Market: TEL's earnings (16.4% per year) are forecast to grow slower than the US market (18.7% per year).

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

Revenue vs Market: TEL's revenue (5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: TEL's revenue (5% 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 (21.5%)


Past Performance

How has TE Connectivity performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEL has a large one-off loss of $1.3B impacting its December 25 2020 financial results.

Growing Profit Margin: TEL's current net profit margins (0.7%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: TEL's earnings have declined by 10.8% per year over the past 5 years.

Accelerating Growth: TEL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TEL had negative earnings growth (-94.2%) over the past year, making it difficult to compare to the Electronic industry average (-6.4%).


Return on Equity

High ROE: TEL's Return on Equity (0.9%) is considered low.


Financial Health

How is TE Connectivity's financial position?


Financial Position Analysis

Short Term Liabilities: TEL's short term assets ($6.5B) exceed its short term liabilities ($4.1B).

Long Term Liabilities: TEL's short term assets ($6.5B) exceed its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: TEL's debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: TEL's debt to equity ratio has reduced from 45.3% to 39.5% over the past 5 years.

Debt Coverage: TEL's debt is well covered by operating cash flow (56.3%).

Interest Coverage: TEL's interest payments on its debt are well covered by EBIT (47.3x coverage).


Balance Sheet


Dividend

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

1.52%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 10 2021Ex Dividend DateMay 20 2021Dividend Pay DateJun 04 202115 days from Ex DividendBuy in the next 39 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TEL's dividend (1.52%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: TEL's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (676.2%), TEL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TEL's dividends in 3 years are forecast to be well covered by earnings (26.3% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Terrence Curtin (52 yo)

4.08yrs

Tenure

US$10,569,225

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

Compensation vs Market: Terrence's total compensation ($USD10.57M) is about average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Terrence's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TEL's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: TEL's board of directors are considered experienced (5.6 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

Ownership Breakdown

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


Top Shareholders

Company Information

TE Connectivity Ltd.'s company bio, 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
  • Market Cap: US$43.324b
  • Shares outstanding: 330.87m
  • Website: https://www.te.com

Number of Employees


Location

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

Listings


Biography

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 t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/09 22:14
End of Day Share Price2021/04/09 00:00
Earnings2020/12/25
Annual Earnings2020/09/25


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.