NYSE:TEL

Stock Analysis Report

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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

Reasonable growth potential 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

0.9%

TEL

1.4%

US Electronic

1.3%

US Market


1 Year Return

25.3%

TEL

21.1%

US Electronic

21.0%

US Market

Return vs Industry: TEL exceeded the US Electronic industry which returned 20.1% over the past year.

Return vs Market: TEL exceeded the US Market which returned 20.9% over the past year.


Shareholder returns

TELIndustryMarket
7 Day0.9%1.4%1.3%
30 Day17.6%17.4%12.1%
90 Day15.7%18.2%4.8%
1 Year27.9%25.3%22.3%21.1%23.7%21.0%
3 Year30.4%22.7%34.8%30.9%46.6%36.8%
5 Year90.8%72.0%108.2%98.4%94.6%73.2%

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?

4.02x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TEL ($113.97) is trading above our estimate of fair value ($93.76)

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


Price To Earnings Ratio

PE vs Industry: TEL is unprofitable, so we can't compare its PE Ratio to the US Electronic industry average.

PE vs Market: TEL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TEL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TEL is overvalued based on its PB Ratio (4x) compared to the US Electronic industry average (2.3x).


Next Steps

Future Growth

How is TE Connectivity forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: TEL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TEL's is expected to become profitable in the next 3 years.

Revenue vs Market: TEL's revenue (6.2% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: TEL's revenue (6.2% 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 (20.7%)


Next Steps

Past Performance

How has TE Connectivity performed over the past 5 years?

-4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEL is currently unprofitable.

Growing Profit Margin: TEL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TEL is unprofitable, and losses have increased over the past 5 years at a rate of 4.4% per year.

Accelerating Growth: Unable to compare TEL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TEL is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-14.1%).


Return on Equity

High ROE: TEL has a negative Return on Equity (-2.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is TE Connectivity's financial position?


Financial Position Analysis

Short Term Liabilities: TEL's short term assets ($5.8B) exceed its short term liabilities ($3.7B).

Long Term Liabilities: TEL's short term assets ($5.8B) do not cover its long term liabilities ($6.1B).


Debt to Equity History and Analysis

Debt Level: TEL's debt to equity ratio (44.5%) is considered high.

Reducing Debt: TEL's debt to equity ratio has increased from 40.6% to 44.5% over the past 5 years.

Debt Coverage: TEL's debt is well covered by operating cash flow (47.1%).

Interest Coverage: TEL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TEL's dividend (1.68%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: TEL's dividend (1.68%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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: TEL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: TEL's dividends in 3 years are forecast to be well covered by earnings (28.5% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Terrence Curtin (52 yo)

3.67yrs

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 ($USD9.29M) is about average for companies of similar size in the US market ($USD10.83M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Terrence Curtin
CEO & Director3.67yrsUS$9.29m0.029%
$ 10.8m
Heath Mitts
Executive VP & CFO4.17yrsUS$3.55m0.0073%
$ 2.7m
John Jenkins
Executive VP & General Counsel8.08yrsUS$2.47m0.0072%
$ 2.7m
Steven Merkt
President of Transportation Solutionsno dataUS$3.25m0.011%
$ 4.2m
Joel Dubs
Senior Vice President of Operations3.08yrsno datano data
Joseph Eckroth
Chief Information Officer & Senior VP6.92yrsno datano data
Sujal Shah
Vice President of Investor Relationsno datano datano data
Kari Janavitz
VP & Chief Marketing Officer2.83yrsno datano data
Timothy Murphy
Senior VP & Chief Human Resources Officer4.67yrsno data0.0055%
$ 2.1m
Jane Leipold
Senior Vice President of Global Human Resources14.83yrsUS$1.78mno data
Eric Resch
Senior VP & Chief Tax Officer13.42yrsno data0.011%
$ 4.2m
Hseau-Jean Wang
Senior Vice President of China8.5yrsno datano data

5.8yrs

Average Tenure

54yo

Average Age

Experienced Management: TEL's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Terrence Curtin
CEO & Director3.67yrsUS$9.29m0.029%
$ 10.8m
Pierre Brondeau
Lead Independent Director5.92yrsUS$327.53k0.011%
$ 4.3m
Thomas Lynch
Chairman of the Board7.83yrsUS$551.22k0.053%
$ 19.9m
Daniel Phelan
Independent Director13.42yrsUS$307.94k0.010%
$ 3.9m
Carol Davidson
Independent Director4.67yrsUS$292.53k0.0040%
$ 1.5m
Laura Wright
Independent Director6.67yrsUS$307.53k0.0041%
$ 1.5m
Abhijit Talwalkar
Independent Director3.67yrsUS$286.69k0.0026%
$ 991.4k
David Kerko
Independent Director1.67yrsUS$167.44k0.0011%
$ 433.5k
Nam Yong
Independent Director8.67yrsUS$272.53k0.0057%
$ 2.2m
Mark Trudeau
Independent Director4.67yrsUS$276.69k0.0029%
$ 1.1m
Lynn Dugle
Independent Director0.67yrno data0.00069%
$ 260.1k
William Jeffrey
Independent Director8.67yrsUS$282.53k0.0058%
$ 2.2m

5.3yrs

Average Tenure

60yo

Average Age

Experienced Board: TEL's board of directors are considered experienced (5.3 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$37.695b
  • Shares outstanding: 330.74m
  • Website: https://www.te.com

Number of Employees


Location

  • TE Connectivity Ltd.
  • MUehlenstrasse 26
  • 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
T1EL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

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 Analysis2020/12/01 00:02
End of Day Share Price2020/11/30 00:00
Earnings2020/09/25
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.