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

0.2%

NYSE:TEL

-1.2%

US Electronic

-1.0%

US Market


1 Year Return

-3.2%

NYSE:TEL

-6.8%

US Electronic

-0.4%

US Market

TEL outperformed the Electronic industry which returned -6.8% over the past year.

TEL underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

TELIndustryMarket
7 Day0.2%-1.2%-1.0%
30 Day1.4%-4.8%-3.3%
90 Day2.0%-0.4%0.8%
1 Year-1.1%-3.2%-5.9%-6.8%1.9%-0.4%
3 Year52.1%43.2%43.2%39.3%39.4%30.4%
5 Year60.4%44.9%51.4%44.0%54.2%37.1%

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

Valuation

Is TE Connectivity undervalued based on future cash flows and its price relative to the stock market?

2%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

TE Connectivity's share price is below the future cash flow value, but not at a moderate discount (< 20%).

TE Connectivity's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

TE Connectivity is poor value based on expected growth next year.


Price Based on Value of Assets

TE Connectivity is overvalued based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

How is TE Connectivity expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TE Connectivity's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

TE Connectivity's earnings are expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

TE Connectivity's revenue growth is positive but not above the United States of America market average.

TE Connectivity's earnings growth is positive but not above the United States of America market average.

TE Connectivity's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

TE Connectivity is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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 (169% vs 12.8%)

TE Connectivity's earnings growth has exceeded the US Electronic industry average in the past year (169% vs 51.2%).


Return on Equity

TE Connectivity has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

TE Connectivity used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

TE Connectivity has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TE Connectivity's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

TE Connectivity's level of debt (38.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (34.1% vs 38.3% today).

Debt is well covered by operating cash flow (60.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 35.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

2.07%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase TE Connectivity before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

TE Connectivity's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

TE Connectivity's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are well covered by earnings (5.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Terrence Curtin (51yo)

2.4yrs

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

Terrence's remuneration is about average for companies of similar size in United States of America.

Terrence's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

51yo

Average Age

The tenure for the TE Connectivity management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

62.5yo

Average Age

The tenure for the TE Connectivity board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$78,03320 May 19
Daniel Phelan
EntityIndividual
Role
Member of the Board of Directors
Shares962.15
Max PriceUS$97.46
SellUS$2,548,42909 May 19
Kevin Rock
EntityIndividual
Role
President of Industrial Solutions
Shares26,803
Max PriceUS$95.08
SellUS$1,071,95407 Feb 19
Heath Mitts
EntityIndividual
Role
Executive VP & CFO
Shares12,908
Max PriceUS$83.05

Ownership Breakdown


Management Team

  • Terrence Curtin (51yo)

    CEO & Director

    • Tenure: 2.4yrs
    • Compensation: $10.24m
  • Kevin Rock (61yo)

    President of Industrial Solutions

    • Compensation: $3.50m
  • Sujal Shah

    Vice President of Investor Relations

  • Steve Merkt (51yo)

    President of Transportation Solutions

    • Tenure: 7.0yrs
    • Compensation: $3.78m
  • Joseph Eckroth (60yo)

    Chief Information Officer & Senior VP

    • Tenure: 5.7yrs
  • Heath Mitts (48yo)

    Executive VP & CFO

    • Tenure: 2.9yrs
    • Compensation: $3.91m
  • Joel Dubs

    Senior Vice President of Operations

    • Tenure: 1.8yrs
  • Tim Murphy (51yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 3.4yrs
  • Kari Janavitz

    VP & Chief Marketing Officer

    • Tenure: 1.6yrs
  • John Jenkins (53yo)

    Executive VP & General Counsel

    • Tenure: 6.8yrs
    • Compensation: $2.91m

Board Members

  • Paula Sneed (71yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: $293.46k
  • Pierre Brondeau (61yo)

    Lead Independent Director

    • Tenure: 4.7yrs
    • Compensation: $341.32k
  • Dan Phelan (69yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: $313.82k
  • Terrence Curtin (51yo)

    CEO & Director

    • Tenure: 3.4yrs
    • Compensation: $10.24m
  • Nam Yong (70yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: $281.20k
  • Laura Wright (59yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: $316.20k
  • Mark Trudeau (58yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: $291.20k
  • Bill Jeffrey (59yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: $291.20k
  • John Davidson (64yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: $296.20k
  • Tom Lynch (64yo)

    Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: $3.35m

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$30.231b
  • Shares outstanding: 335.94m
  • Website: Click here

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 Analysis2019/08/18 00:16
End of Day Share Price2019/08/16 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.