TE Connectivity
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 last earnings update was 85 days ago. More info.
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TEL Share Price and Events
7 Day Returns
1 Year Returns
TEL Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| TE Connectivity (TEL) | 1.7% | 8.2% | 10.1% | -10.8% | 46.1% | 51% |
| US Electronic | 0.9% | 5.9% | 17.4% | 10.1% | 68.2% | 66.4% |
| US Market | 0.2% | 2.1% | 8.5% | 6.3% | 37.9% | 45.7% |
1 Year Return vs Industry and Market
- TEL underperformed the Electronic industry which returned 10.1% over the past year.
- TEL underperformed the Market in United States of America which returned 6.3% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
TE Connectivity
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for TE Connectivity.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 15 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.4% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Electronic Unlevered Beta | Simply Wall St/ S&P Global | 1.07 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.069 (1 + (1- 18%) (13.33%)) |
1.125 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.12 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.125 * 5.96%) |
9.43% |
Discounted Cash Flow Calculation for NYSE:TEL using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for TE Connectivity is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.43%) |
|
|---|---|---|---|
| 2019 | 1,843.60 | Analyst x5 | 1,684.67 |
| 2020 | 1,785.40 | Analyst x5 | 1,490.85 |
| 2021 | 1,790.00 | Analyst x1 | 1,365.84 |
| 2022 | 1,927.00 | Analyst x1 | 1,343.62 |
| 2023 | 1,961.48 | Est @ 1.79% | 1,249.76 |
| 2024 | 2,002.11 | Est @ 2.07% | 1,165.68 |
| 2025 | 2,047.53 | Est @ 2.27% | 1,089.36 |
| 2026 | 2,096.82 | Est @ 2.41% | 1,019.42 |
| 2027 | 2,149.33 | Est @ 2.5% | 954.86 |
| 2028 | 2,204.61 | Est @ 2.57% | 894.99 |
| Present value of next 10 years cash flows | $12,259.04 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $2,204.61 × (1 + 2.73%) ÷ (9.43% – 2.73%) |
$33,783.92 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $33,783.92 ÷ (1 + 9.43%)10 |
$13,715.04 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $12,259.04 + $13,715.04 |
$25,974.08 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $25,974.08 / 338.26 |
$76.79 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $76.79 |
| Current discount | Discount to share price of
$89.43
= -1 x ($89.43 - $76.79) / $76.79 |
-16.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of TE Connectivity is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for TE Connectivity's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
TE Connectivity's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-28) in USD | $8.63 |
| NYSE:TEL Share Price ** | NYSE (2019-04-18) in USD | $89.43 |
| United States of America Electronic Industry PE Ratio | Median Figure of 92 Publicly-Listed Electronic Companies | 21.67x |
| United States of America Market PE Ratio | Median Figure of 3,081 Publicly-Listed Companies | 18.15x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of TE Connectivity.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:TEL Share Price ÷ EPS (both in USD) = 89.43 ÷ 8.63 |
10.36x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- TE Connectivity is good value based on earnings compared to the US Electronic industry average.
- TE Connectivity is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
TE Connectivity's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 10.36x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts |
2.2%per year |
| United States of America Electronic Industry PEG Ratio | Median Figure of 58 Publicly-Listed Electronic Companies | 1.64x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 10.36x ÷ 2.2% |
4.66x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- TE Connectivity is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
TE Connectivity's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-28) in USD | $30.16 |
| NYSE:TEL Share Price * | NYSE (2019-04-18) in USD | $89.43 |
| United States of America Electronic Industry PB Ratio | Median Figure of 145 Publicly-Listed Electronic Companies | 2.14x |
| United States of America Market PB Ratio | Median Figure of 5,178 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:TEL Share Price ÷ Book Value per Share (both in USD) = 89.43 ÷ 30.16 |
2.96x |
* Primary Listing of TE Connectivity.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- TE Connectivity is overvalued based on assets compared to the US Electronic industry average.
Value checks
We assess TE Connectivity's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check) TE Connectivity has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- TE Connectivity's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
- TE Connectivity's earnings growth is positive but not above the United States of America market average.
- TE Connectivity's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:TEL Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts | 2.2% |
| NYSE:TEL Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts | 4.1% |
| United States of America Electronic Industry Earnings Growth Rate | Market Cap Weighted Average | 16.7% |
| United States of America Electronic Industry Revenue Growth Rate | Market Cap Weighted Average | 5.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | 3,122 | |||
| 2022-09-30 | 15,621 | 2,928 | 2,261 | 2 |
| 2021-09-30 | 14,939 | 2,762 | 2,129 | 5 |
| 2020-09-30 | 14,315 | 2,697 | 1,954 | 15 |
| 2019-09-30 | 13,679 | 2,546 | 1,666 | 14 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-28 | 13,999 | 2,398 | 3,000 |
| 2018-09-28 | 13,988 | 2,451 | 2,584 |
| 2018-06-29 | 13,373 | 2,400 | 1,209 |
| 2018-03-30 | 12,976 | 2,123 | 1,187 |
| 2017-12-29 | 12,458 | 2,267 | 1,101 |
| 2017-09-29 | 12,185 | 2,321 | 1,540 |
| 2017-06-30 | 12,989 | 2,132 | 1,681 |
| 2017-03-31 | 12,743 | 2,327 | 2,040 |
| 2016-12-30 | 12,468 | 1,961 | 2,023 |
| 2016-09-30 | 11,352 | 1,947 | 1,847 |
| 2016-06-24 | 11,890 | 1,887 | 1,640 |
| 2016-03-25 | 11,887 | 1,765 | 1,200 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
All data from TE Connectivity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | ||||
| 2022-09-30 | 7.15 | 7.15 | 7.15 | 1.00 |
| 2021-09-30 | 6.56 | 6.56 | 6.56 | 1.00 |
| 2020-09-30 | 5.85 | 6.18 | 5.38 | 9.00 |
| 2019-09-30 | 4.89 | 5.06 | 4.46 | 7.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-28 | 8.63 |
| 2018-09-28 | 7.38 |
| 2018-06-29 | 3.44 |
| 2018-03-30 | 3.36 |
| 2017-12-29 | 3.11 |
| 2017-09-29 | 4.34 |
| 2017-06-30 | 4.73 |
| 2017-03-31 | 5.72 |
| 2016-12-30 | 5.64 |
| 2016-09-30 | 5.05 |
| 2016-06-24 | 4.36 |
| 2016-03-25 | 3.08 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess TE Connectivity's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
TE Connectivity has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has TE Connectivity performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- TE Connectivity's year on year earnings growth rate has been positive over the past 5 years.
- TE Connectivity's 1-year earnings growth exceeds its 5-year average (171.3% vs 7.4%)
- TE Connectivity's earnings growth has exceeded the US Electronic industry average in the past year (171.3% vs 62.1%).
Earnings and Revenue History
All data from TE Connectivity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-28 | 13,999.00 | 3,000.00 | 1,605.00 | 676.00 |
| 2018-09-28 | 13,988.00 | 2,584.00 | 1,591.00 | 680.00 |
| 2018-06-29 | 13,373.00 | 1,209.00 | 1,550.00 | 654.00 |
| 2018-03-30 | 12,976.00 | 1,187.00 | 1,607.00 | 641.00 |
| 2017-12-29 | 12,458.00 | 1,101.00 | 1,578.00 | 620.00 |
| 2017-09-29 | 12,185.00 | 1,540.00 | 1,577.00 | 611.00 |
| 2017-06-30 | 12,989.00 | 1,681.00 | 1,643.00 | 650.00 |
| 2017-03-31 | 12,743.00 | 2,040.00 | 1,530.00 | 643.00 |
| 2016-12-30 | 12,468.00 | 2,023.00 | 1,498.00 | 638.00 |
| 2016-09-30 | 11,352.00 | 1,847.00 | 1,441.00 | 603.00 |
| 2016-06-24 | 11,890.00 | 1,640.00 | 1,408.00 | 627.00 |
| 2016-03-25 | 11,887.00 | 1,200.00 | 1,434.00 | 625.00 |
| 2015-12-25 | 12,017.00 | 1,127.00 | 1,458.00 | 629.00 |
| 2015-09-25 | 12,233.00 | 1,238.00 | 1,504.00 | 627.00 |
| 2015-06-26 | 12,321.00 | 1,716.00 | 1,550.00 | 629.00 |
| 2015-03-27 | 12,278.00 | 1,712.00 | 1,553.00 | 617.00 |
| 2014-12-26 | 12,160.00 | 1,736.00 | 1,541.00 | 602.00 |
| 2014-09-26 | 11,973.00 | 1,614.00 | 1,534.00 | 583.00 |
| 2014-06-27 | 12,333.00 | 1,387.00 | 1,605.00 | 599.00 |
| 2014-03-28 | 12,707.00 | 1,372.00 | 1,665.00 | 619.00 |
| 2013-12-27 | 13,008.00 | 1,310.00 | 1,724.00 | 645.00 |
| 2013-09-27 | 11,390.00 | 1,154.00 | 1,440.00 | 590.00 |
| 2013-06-28 | 13,212.00 | 1,287.00 | 1,774.00 | 674.00 |
| 2013-03-29 | 13,262.00 | 1,215.00 | 1,741.00 | 680.00 |
| 2012-12-28 | 13,246.00 | 1,204.00 | 1,730.00 | 682.00 |
| 2012-09-28 | 13,282.00 | 1,163.00 | 1,685.00 | 688.00 |
| 2012-06-29 | 13,671.00 | 1,085.00 | 1,700.00 | 717.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- TE Connectivity has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- TE Connectivity used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
- TE Connectivity has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess TE Connectivity's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
TE Connectivity has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is TE Connectivity's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up TE Connectivity's finances.
The net worth of a company is the difference between its assets and liabilities.
- TE Connectivity is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- TE Connectivity's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from TE Connectivity Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-28 | 10,236.00 | 4,031.00 | 505.00 |
| 2018-09-28 | 10,831.00 | 4,100.00 | 848.00 |
| 2018-06-29 | 9,492.00 | 4,115.00 | 770.00 |
| 2018-03-30 | 9,480.00 | 4,188.00 | 559.00 |
| 2017-12-29 | 9,631.00 | 4,005.00 | 704.00 |
| 2017-09-29 | 9,751.00 | 4,440.00 | 1,218.00 |
| 2017-06-30 | 9,141.00 | 3,991.00 | 755.00 |
| 2017-03-31 | 8,753.00 | 3,952.00 | 773.00 |
| 2016-12-30 | 8,837.00 | 4,028.00 | 665.00 |
| 2016-09-30 | 8,485.00 | 4,070.00 | 647.00 |
| 2016-06-24 | 8,265.00 | 4,036.00 | 694.00 |
| 2016-03-25 | 7,406.00 | 3,884.00 | 1,150.00 |
| 2015-12-25 | 8,577.00 | 3,870.00 | 2,223.00 |
| 2015-09-25 | 9,585.00 | 3,884.00 | 3,329.00 |
| 2015-06-26 | 9,135.00 | 4,026.00 | 701.00 |
| 2015-03-27 | 8,995.00 | 4,126.00 | 697.00 |
| 2014-12-26 | 9,170.00 | 4,223.00 | 868.00 |
| 2014-09-26 | 9,013.00 | 3,858.00 | 2,457.00 |
| 2014-06-27 | 8,848.00 | 3,000.00 | 1,613.00 |
| 2014-03-28 | 8,399.00 | 2,995.00 | 1,429.00 |
| 2013-12-27 | 8,622.00 | 2,998.00 | 1,397.00 |
| 2013-09-27 | 8,386.00 | 3,014.00 | 1,403.00 |
| 2013-06-28 | 7,888.00 | 3,018.00 | 1,262.00 |
| 2013-03-29 | 7,733.00 | 3,030.00 | 1,073.00 |
| 2012-12-28 | 8,134.00 | 3,038.00 | 972.00 |
| 2012-09-28 | 7,977.00 | 3,711.00 | 1,589.00 |
| 2012-06-29 | 7,740.00 | 3,759.00 | 1,302.00 |
- TE Connectivity's level of debt (39.4%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (34.8% vs 39.4% today).
- Debt is well covered by operating cash flow (59.5%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 26.4x coverage).
Financial health checks
We assess TE Connectivity's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) TE Connectivity has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is TE Connectivity's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
TE Connectivity
shares you are expected to receive
$39
in your first year as a dividend.
Dividend Amount
- TE Connectivity's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- TE Connectivity's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 15 Analyst Estimates (S&P Global) | See Below |
| United States of America Electronic Industry Average Dividend Yield | Market Cap Weighted Average of 38 Stocks | 1.5% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2009 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-09-30 | ||
| 2022-09-30 | ||
| 2021-09-30 | 1.83 | 4.00 |
| 2020-09-30 | 1.87 | 10.00 |
| 2019-09-30 | 1.79 | 10.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-11 | 1.760 | 2.108 |
| 2018-11-08 | 1.760 | 2.301 |
| 2018-08-08 | 1.760 | 2.050 |
| 2018-05-09 | 1.760 | 1.872 |
| 2018-02-07 | 1.600 | 1.614 |
| 2017-11-09 | 1.600 | 1.649 |
| 2017-08-09 | 1.600 | 1.912 |
| 2017-05-10 | 1.600 | 2.023 |
| 2017-02-14 | 1.480 | 1.980 |
| 2016-11-16 | 1.480 | 2.100 |
| 2016-08-11 | 1.480 | 2.348 |
| 2016-07-22 | 1.480 | 2.473 |
| 2016-07-20 | 1.480 | 2.404 |
| 2016-02-11 | 1.320 | 2.216 |
| 2015-11-12 | 1.320 | 2.161 |
| 2015-08-14 | 1.320 | 2.150 |
| 2015-05-13 | 1.320 | 2.019 |
| 2014-12-17 | 1.160 | 1.698 |
| 2014-11-17 | 1.160 | 1.841 |
| 2014-08-14 | 1.160 | 1.960 |
| 2014-07-24 | 1.160 | 1.870 |
| 2014-07-23 | 1.160 | 1.847 |
| 2014-02-13 | 1.000 | 1.669 |
| 2013-11-14 | 1.000 | 1.835 |
| 2013-08-16 | 1.000 | 1.936 |
| 2013-05-16 | 1.000 | 2.121 |
| 2013-02-14 | 0.840 | 2.008 |
| 2012-11-19 | 0.840 | 2.244 |
| 2012-08-15 | 0.840 | 2.442 |
| 2012-05-21 | 0.840 | 2.609 |
| 2012-02-17 | 0.720 | 2.040 |
| 2011-11-18 | 0.720 | 2.186 |
| 2011-08-10 | 0.720 | 2.316 |
| 2011-04-21 | 0.720 | 2.040 |
| 2011-02-11 | 0.640 | 1.822 |
| 2010-11-29 | 0.640 | 1.812 |
| 2010-08-27 | 0.640 | 2.166 |
| 2010-07-23 | 0.640 | 2.397 |
| 2010-07-22 | 0.640 | 2.471 |
| 2010-02-08 | 0.640 | 2.329 |
| 2009-10-08 | 0.640 | 2.680 |
| 2009-07-29 | 0.640 | 2.826 |
| 2009-04-20 | 0.640 | 3.527 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
TE Connectivity's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (5x coverage).
- Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).
Income/ dividend checks
We assess TE Connectivity's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can TE Connectivity afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) TE Connectivity has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $10,237,011 |
| AGE | 50 |
| TENURE AS CEO | 2.1 years |
CEO Bio
of TE employees and cultivating a diverse work environment where global collaboration and innovation thrive. Mr. Curtin served as the President of TE Connectivity Ltd. since March 10, 2015. He was responsible for all of TE's connectivity and sensor businesses and mergers and acquisitions activities. In his prior role as President, Industrial Solutions, Mr. Curtin was responsible for the operations and strategic direction of TE's Industrial, Energy, and Aerospace, Defense, Oil and Gas businesses. As TE's Executive Vice President and Chief Financial Officer, Mr. Curtin was responsible for developing and implementing the financial strategy for TE and for creating the financial infrastructure necessary to drive the company's financial direction, vision and compliance initiatives. Before joining TE, Mr. Curtin was employed by Arthur Andersen LLP where he served in the audit and accounting advisory services group with a focus on large multinational public companies. Mr. Curtin served as an Executive Vice President and President of Industrial Solutions at TE Connectivity Ltd. from August 1, 2012 to March 10, 2015. Mr. Curtin served as the Chief Financial Officer and Executive Vice President of TE Connectivity Ltd. (formerly, Tyco Electronics Ltd), the parent of Tyco Electronics Group S.A. from October 2006 to August 1, 2012. He served as Corporate Controller of TE Connectivity Ltd. since 2001. Prior to TE, Curtin was the Vice President and Controller of the Electronics segment of Tyco International from 2001 to 2006. Mr. Curtin was employed by Arthur Andersen LLP. He has been Director of TE Connectivity Ltd since March 2016. He is a member of Board of Trustees of Albright College. He served as a Director of TE Connectivity Ltd., from October 2006 to June 29, 2007. He is a member of the U.S.-China Business Council since June 2018. Mr. Curtin holds a bachelor's degree in Accounting from Albright College, Pennsylvania, U.S., and is also a Certified Public Accountant.
CEO Compensation
- Terrence's compensation has been consistent with company performance over the past year.
- Terrence's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the TE Connectivity management team in years:
- The tenure for the TE Connectivity management team is about average.
Management Team
Terrence Curtin
CEO & Director
$10M
50
2.1 yrs
Heath Mitts
Executive VP & CFO
$4M
47
2.6 yrs
John Jenkins
Executive VP & General Counsel
$3M
52
6.5 yrs
Kevin Rock
President of Industrial Solutions
$4M
60
4.1 yrs
Steve Merkt
President of Transportation Solutions
$4M
50
6.7 yrs
Joel Dubs
Senior Vice President of Operations
1.5 yrs
Joseph Eckroth
Chief Information Officer and Senior Vice President
59
5.3 yrs
Sujal Shah
Vice President of Investor Relations
Kari Janavitz
VP & Chief Marketing Officer
1.3 yrs
Tim Murphy
Senior VP & Chief Human Resources Officer of Global Human Resources
50
3.1 yrs
Board of Directors Tenure
Average tenure and age of the TE Connectivity board of directors in years:
- The tenure for the TE Connectivity board of directors is about average.
Board of Directors
Tom Lynch
Chairman of the Board
$3M
63
6.3 yrs
Terrence Curtin
CEO & Director
$10M
50
3.1 yrs
Dan Phelan
Director
$314K
68
11.8 yrs
Pierre Brondeau
Lead Independent Director
$341K
60
4.3 yrs
Laura Wright
Director
$316K
58
5.1 yrs
Paula Sneed
Director
$293K
70
11.8 yrs
Bill Jeffrey
Director
$291K
58
7.1 yrs
Nam Yong
Director
$281K
69
7.1 yrs
Mark Trudeau
Director
$291K
57
3.1 yrs
John Davidson
Director
$296K
63
3.1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 07. Feb 19 | Sell | Heath Mitts | Individual | 06. Feb 19 | 06. Feb 19 | -12,908 | $83.05 | $-1,071,954 | ||
Management checks
We assess TE Connectivity's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) TE Connectivity has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
If You Like EPS Growth Then Check Out TE Connectivity (NYSE:TEL) Before It's Too Late
But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. … That sort of growth never lasts long, but like a shooting star it is well worth watching when it happens. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth.
Simply Wall St - – Full articleThe TE Connectivity (NYSE:TEL) Share Price Is Up 40% And Shareholders Are Holding On
(NYSE:TEL) share price is up 40% in the last five years, that's less than the market return. … Unfortunately the share price is down 14% in the last year. … During five years of share price growth, TE Connectivity achieved compound earnings per share (EPS) growth of 22% per year.
Simply Wall St - – Full articleTE Connectivity Ltd. (NYSE:TEL): An Investing Strategy To Help You Win
High quality companies, such as TE Connectivity Ltd., are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … See our latest analysis for TE Connectivity. … 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
Simply Wall St - – Full articleHave Insiders Been Selling TE Connectivity Ltd. (NYSE:TEL) Shares This Year?
So shareholders might well want to know whether insiders have been buying or selling shares in TE Connectivity Ltd. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price
Simply Wall St - – Full articleTE Connectivity Ltd. (NYSE:TEL) Is Employing Capital Very Effectively
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleIs TE Connectivity Ltd. (NYSE:TEL) A High Quality Stock To Own?
Our data shows TE Connectivity has a return on equity of 29% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.29 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleShould You Consider TE Connectivity Ltd. (NYSE:TEL)?
Attractive stocks have exceptional fundamentals. … In the case of TE Connectivity Ltd. … (NYSE:TEL), there's
Simply Wall St - – Full articleWhat You Must Know About TE Connectivity Ltd.'s (NYSE:TEL) Financial Health
(NYSE:TEL), a large-cap worth US$26b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … Using the most recent data for TEL, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.
Simply Wall St - – Full articleHere's What TE Connectivity Ltd.'s (NYSE:TEL) P/E Ratio Is Telling Us
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … TE Connectivity has a price to earnings ratio of 9.75, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWill TE Connectivity Ltd's (NYSE:TEL) Earnings Grow Over The Next Few Years?
The most recent earnings announcement TE Connectivity Ltd's (NYSE:TEL) released in September 2018a … signalled
Simply Wall St - – Full articleCompany Info
Description
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.
Details
| Name: | TE Connectivity Ltd. |
| TEL | |
| Exchange: | NYSE |
| Founded: | 2000 |
| $30,250,449,159 | |
| 338,258,405 | |
| Website: | http://www.te.com |
| Address: |
TE Connectivity Ltd. Rheinstrasse 20, Schaffhausen, Schaffhausen, 8200, Switzerland |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | TEL | Registered Shares | New York Stock Exchange | US | USD | 14. Jun 2007 | |
| DB | 9TC | Registered Shares | Deutsche Boerse AG | DE | EUR | 14. Jun 2007 | |
| LSE | 0VQJ | Registered Shares | London Stock Exchange | GB | USD | 14. Jun 2007 | |
| BMV | TEL N | Registered Shares | Bolsa Mexicana de Valores | MX | MXN | 14. Jun 2007 |
Number of employees
Current staff
Industry
| Electronic Manufacturing Services | |
| Tech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/19 23:59 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/01/24 |
| Last earnings reported: | 2018/12/28 |
| Last annual earnings reported: | 2018/09/28 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
