TE Connectivity
Market Cap
US$31.2b
Last Updated
2020/02/17 00:31 UTC
Data Sources
Company Financials +
Executive Summary
TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensors solutions in Europe, the Middle East, Africa, the Asia–Pacific, and the Americas.
Snowflake Analysis
Excellent balance sheet established 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.1%
TEL
1.7%
US Electronic
1.5%
US Market
1 Year Return
13.6%
TEL
10.4%
US Electronic
20.1%
US Market
Return vs Industry: TEL exceeded the US Electronic industry which returned 10.4% over the past year.
Return vs Market: TEL underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| TEL | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.1% | 1.7% | 1.5% |
| 30 Day | -6.9% | -4.7% | 1.4% |
| 90 Day | 0.8% | 2.4% | 8.7% |
| 1 Year | 16.0%13.6% | 11.5%10.4% | 22.7%20.1% |
| 3 Year | 31.6%24.1% | 37.4%33.6% | 50.1%40.5% |
| 5 Year | 44.9%30.7% | 70.5%62.1% | 73.1%54.1% |
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
20 hours ago | Simply Wall St
TE Connectivity Ltd. (NYSE:TEL) Passed Our Checks, And It's About To Pay A US$0.46 Dividend1 week ago | Simply Wall St
Trade Alert: The Executive VP & CFO Of TE Connectivity Ltd. (NYSE:TEL), Heath Mitts, Has Sold Some Shares Recently1 week ago | Simply Wall St
You Have To Love TE Connectivity Ltd.'s (NYSE:TEL) DividendValuation
Is TE Connectivity undervalued compared to its fair value and its price relative to the market?
19.78x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TEL ($93.3) is trading above our estimate of fair value ($90.85)
Significantly Below Fair Value: TEL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TEL is good value based on its PE Ratio (19.8x) compared to the Electronic industry average (20.2x).
PE vs Market: TEL is poor value based on its PE Ratio (19.8x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: TEL is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: TEL is overvalued based on its PB Ratio (3x) compared to the US Electronic industry average (1.9x).
Next Steps
Future Growth
How is TE Connectivity forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
15.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TEL's forecast earnings growth (15.4% per year) is above the savings rate (1.7%).
Earnings vs Market: TEL's earnings (15.4% per year) are forecast to grow faster than the US market (14.5% 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 (7.6% 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 low in 3 years time (18.5%).
Next Steps
Past Performance
How has TE Connectivity performed over the past 5 years?
10.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TEL has high quality earnings.
Growing Profit Margin: TEL's current net profit margins (12%) are lower than last year (21.4%).
Past Earnings Growth Analysis
Earnings Trend: TEL's earnings have grown by 10.5% 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 (-47.1%) over the past year, making it difficult to compare to the Electronic industry average (14.6%).
Return on Equity
High ROE: TEL's Return on Equity (15%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is TE Connectivity's financial position?
Financial Position Analysis
Short Term Liabilities: TEL's short term assets ($5.6B) exceed its short term liabilities ($3.4B).
Long Term Liabilities: TEL's short term assets ($5.6B) do not cover its long term liabilities ($6.0B).
Debt to Equity History and Analysis
Debt Level: TEL's debt to equity ratio (37.7%) is considered satisfactory.
Reducing Debt: TEL's debt to equity ratio has reduced from 46% to 37.7% over the past 5 years.
Debt Coverage: TEL's debt is well covered by operating cash flow (63.6%).
Interest Coverage: TEL's interest payments on its debt are well covered by EBIT (66.8x coverage).
Balance Sheet
Inventory Level: TEL has a high level of physical assets or inventory.
Debt Coverage by Assets: TEL's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is TE Connectivity's current dividend yield, its reliability and sustainability?
1.97%
Current Dividend Yield
Upcoming Dividend Payment
Purchase TE Connectivity before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TEL's dividend (1.97%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: TEL's dividend (1.97%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 reasonably low payout ratio (38.6%), TEL's dividend payments are 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 (28% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Terrence Curtin (51yo)
2.9yrs
Tenure
US$9,291,836
Compensation
Mr. Terrence R. Curtin is the Chief Executive Officer and Board Member, TE Connectivity. Mr. Curtin served as the President of TE Connectivity Ltd. since March 10, 2015. He was responsible for all of TE's ...
CEO Compensation Analysis
Compensation vs Market: Terrence's total compensation ($USD9.29M) is about average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Terrence's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.9yrs | US$9.29m | 0.028% $8.9m | |
| Executive VP & CFO | 3.4yrs | US$3.55m | 0.0032% $985.1k | |
| Executive VP & General Counsel | 7.3yrs | US$2.47m | 0.0085% $2.6m | |
| President of Industrial Solutions | 0yrs | US$2.33m | 0.025% $7.7m | |
| President of Transportation Solutions | 0yrs | US$3.25m | 0.014% $4.3m | |
| Senior Vice President of Operations | 2.3yrs | no data | no data | |
| Chief Information Officer & Senior VP | 6.2yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| VP & Chief Marketing Officer | 2.1yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | 3.9yrs | no data | 0.0054% $1.7m |
3.4yrs
Average Tenure
51yo
Average Age
Experienced Management: TEL's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.9yrs | US$9.29m | 0.028% $8.9m | |
| Lead Independent Director | 5.2yrs | US$327.53k | 0.011% $3.4m | |
| Chairman of the Board | 7.1yrs | US$551.22k | 0.057% $17.8m | |
| Independent Director | 12.7yrs | US$277.53k | 0.011% $3.5m | |
| Independent Director | 12.7yrs | US$307.94k | 0.0096% $3.0m | |
| Independent Director | 3.9yrs | US$292.53k | 0.0036% $1.1m | |
| Independent Director | 5.9yrs | US$307.53k | 0.0037% $1.1m | |
| Independent Director | 7.9yrs | US$272.53k | 0.0053% $1.6m | |
| Independent Director | 3.9yrs | US$276.69k | 0.0025% $770.0k | |
| Independent Director | 7.9yrs | US$282.53k | 0.0054% $1.7m |
6.5yrs
Average Tenure
62.5yo
Average Age
Experienced Board: TEL's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TEL insiders have sold more shares than they have bought 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$31.175b
- Shares outstanding: 334.14m
- Website: https://www.te.com
Number of Employees
Location
- TE Connectivity Ltd.
- Mühlenstrasse 26
- Schaffhausen
- Schaffhausen
- 8200
- Switzerland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 9TC | DB (Deutsche Boerse AG) | Yes | Registered Shares | DE | EUR | Jun 2007 |
| TEL | NYSE (New York Stock Exchange) | Yes | Registered Shares | US | USD | Jun 2007 |
| TEL N | BMV (Bolsa Mexicana de Valores) | Yes | Registered Shares | MX | MXN | Jun 2007 |
| 0VQJ | LSE (London Stock Exchange) | Yes | Registered Shares | GB | USD | Jun 2007 |
Biography
TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensors 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, antennas, relays, application tooling, wires, and heat shrink tubing products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; heat shrink tubing; relays; and wires and cables for industrial equipment, aerospace, defense, oil and gas, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. TE Connectivity Ltd. sells its products to approximately 140 countries primarily through direct selling to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was incorporated in 2000 and is based in Schaffhausen, Switzerland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:31 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/27 |
| Annual Earnings | 2019/09/27 |
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.