NYSE:TEL

Stock Analysis Report

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

Fundamentals

Outstanding track record 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


Market Performance


7 Day Return

2.1%

TEL

2.4%

US Electronic

0.07%

US Market


1 Year Return

22.4%

TEL

16.3%

US Electronic

8.9%

US Market

Return vs Industry: TEL exceeded the US Electronic industry which returned 16.3% over the past year.

Return vs Market: TEL exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

TELIndustryMarket
7 Day2.1%2.4%0.07%
30 Day0.8%3.7%-0.3%
90 Day2.8%2.3%-1.6%
1 Year25.1%22.4%17.5%16.3%11.3%8.9%
3 Year61.1%51.7%55.8%51.4%46.3%36.8%
5 Year79.3%61.9%83.7%74.7%62.1%44.3%

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?

9.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TEL ($93.92) is trading above our estimate of fair value ($81.72)

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 (9.9x) compared to the Electronic industry average (19.6x).

PE vs Market: TEL is good value based on its PE Ratio (9.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TEL is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: TEL is overvalued based on its PB Ratio (3x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEL's forecast earnings growth (1.7% per year) is below the savings rate (2.7%).

Earnings vs Market: TEL's earnings (1.7% per year) are forecast to grow slower 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 (3.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TEL's revenue (3.4% 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?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TEL's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: TEL's earnings growth over the past year (169%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: TEL earnings growth over the past year (169%) exceeded the Electronic industry 58.6%.


Return on Equity

High ROE: TEL's Return on Equity (30.5%) is considered high.


Return on Assets

ROA vs Industry: TEL has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: TEL has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TE Connectivity's financial position?


Financial Position Analysis

Short Term Liabilities: TEL's short term assets ($5.4B) exceeds its short term liabilities ($3.7B)

Long Term Liabilities: TEL's short term assets (5.4B) do not cover its long term liabilities (5.4B)


Debt to Equity History and Analysis

Debt Level: TEL's debt to equity ratio (38.3%) is considered satisfactory

Reducing Debt: TEL's debt to equity ratio has increased from 34.1% to 38.3% over the past 5 years.

Debt Coverage: TEL's debt is well covered by operating cash flow (60.6%).

Interest Coverage: TEL's interest payments on its debt are well covered by EBIT (35.9x 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 1.331530x debt).


Next Steps

Dividend

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

1.96%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TEL's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TEL's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 low payout ratio (18.7%), 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 (27.8% payout ratio).


Next Steps

Management

What is the CEO of TE Connectivity's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Terrence Curtin (51yo)

2.6yrs

Tenure

US$10,237,011

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 ($USD10.24M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: TEL's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TEL's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: TEL insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$13,66520 Aug 19
Daniel Phelan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares150
Max PriceUS$91.10
SellUS$445,11119 Aug 19
Steven Merkt
EntityIndividual
Role
Unit President
President of Transportation Solutions
Shares5,000
Max PriceUS$89.02
BuyUS$78,03320 May 19
Daniel Phelan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares962.15
Max PriceUS$97.46
SellUS$2,548,42909 May 19
Kevin Rock
EntityIndividual
Role
Senior Key Executive
President of Industrial Solutions
Shares26,803
Max PriceUS$95.08
SellUS$1,071,95407 Feb 19
Heath Mitts
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares12,908
Max PriceUS$83.05

Ownership Breakdown


Management Team

  • Joseph Eckroth (60yo)

    Chief Information Officer & Senior VP

    • Tenure: 5.8yrs
  • John Jenkins (53yo)

    Executive VP & General Counsel

    • Tenure: 7yrs
    • Compensation: US$2.91m
  • Heath Mitts (48yo)

    Executive VP & CFO

    • Tenure: 3.1yrs
    • Compensation: US$3.91m
  • Terrence Curtin (51yo)

    CEO & Director

    • Tenure: 2.6yrs
    • Compensation: US$10.24m
  • Kevin Rock (61yo)

    President of Industrial Solutions

    • Tenure: 0yrs
    • Compensation: US$3.50m
  • Sujal Shah

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Steve Merkt (51yo)

    President of Transportation Solutions

    • Tenure: 7.2yrs
    • Compensation: US$3.78m
  • Tim Murphy (51yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 3.6yrs
  • Joel Dubs

    Senior Vice President of Operations

    • Tenure: 2yrs
  • Kari Janavitz

    VP & Chief Marketing Officer

    • Tenure: 1.8yrs

Board Members

  • Pierre Brondeau (61yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$341.32k
  • Tom Lynch (64yo)

    Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: US$3.35m
  • Paula Sneed (71yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$293.46k
  • Dan Phelan (69yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$313.82k
  • John Davidson (64yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$296.20k
  • Laura Wright (59yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$316.20k
  • Nam Yong (70yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$281.20k
  • Terrence Curtin (51yo)

    CEO & Director

    • Tenure: 2.6yrs
    • Compensation: US$10.24m
  • Mark Trudeau (58yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$291.20k
  • Bill Jeffrey (59yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$291.20k

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$31.551b
  • Shares outstanding: 335.94m
  • Website: https://www.te.com

Number of Employees


Location

  • TE Connectivity Ltd.
  • Rheinstrasse 20
  • Schaffhausen
  • Schaffhausen
  • 8200
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9TCDB (Deutsche Boerse AG)YesRegistered SharesDEEURJun 2007
TELNYSE (New York Stock Exchange)YesRegistered SharesUSUSDJun 2007
TEL NBMV (Bolsa Mexicana de Valores)YesRegistered SharesMXMXNJun 2007
0VQJLSE (London Stock Exchange)YesRegistered SharesGBUSDJun 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:58
End of Day Share Price2019/10/22 00:00
Earnings2019/06/28
Annual Earnings2018/09/28


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.