TEL

TE Connectivity Ltd.

Fundamental data last updated:June 12, 2026

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company profile

SECTOR

Technology

industry

Hardware, Equipment & Parts

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/22/2026

Business Summary

Operating globally across Europe, the Middle East & Africa, Asia Pacific, and the Americas, TE Connectivity Ltd. (TEL) specializes in the engineering and distribution of advanced connectivity and sensor technologies. The company structures its diverse operations into three primary business units: 1. Transportation Solutions: This segment delivers critical components such as terminals, sophisticated connector systems, various sensors, relays, antennas, heat shrink tubing, and specialized application tooling. These products are vital for the automotive, commercial vehicle, and broader sensor manufacturing sectors. 2. Industrial Solutions: This division provides an array of components including terminals, connector systems, heat shrink tubing, interventional medical devices, relays, and an assortment of wires and cables. Its extensive client base spans industries like aerospace, defense, oil & gas, general industrial equipment, medical devices, and energy. 3. Communications Solutions: Focused on electronic components, this unit supplies terminals, connector systems, relays, heat shrink tubing, and antennas, primarily serving the data & devices and appliance markets. TE Connectivity Ltd. distributes its offerings to customers in approximately 140 nations, predominantly through direct sales to original equipment manufacturers, supplemented by a network of third-party distributors. Established in 2000, the company is headquartered in Schaffhausen, Switzerland, and changed its name from Tyco Electronics Ltd. to TE Connectivity Ltd. in March 2011.

 


VALUATION

P/E

20.95

Market Cap ($M USD)

$60.64B

Forward P/E

12.90

PEG

0.21

PRICE TO SALES

3.27

PRICE TO BOOK

4.60

EV / EBITDA

14.60

5-Year Average P/E

Free Cash Flow Yield

5.59%

DCF Value

$175.09

Graham Number

$100.40

Price to FCF

17.88

EV to FCF

19.22

Earnings Yield

4.77%

FCF Yield

5.59%

DIVIDEND

Yield

1.40%

Annual Payout

$2.91

Payout Ratio

28.84%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$9.92

Next Year EPS Growth Estimate

$16.10

Next Year Revenue Growth Estimate

$2.38T

Return on Equity (ROE)

22.71%

FREE CASH FLOW

Operating Margin

19.28%

Debt-to-Equity

0.52

Piotroski F-Score

8

Altman Z-Score

4.31

Return on Invested Capital (ROIC)

16.76%

Current Ratio

1.89

Quick Ratio

1.20

Net Debt to EBITDA

1.02

Interest Coverage

30.02

Gross Profit margin

35.36%

FCF PER SHARE

$11.57

REVENUE PER SHARE

$63.22

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing TEL TE Connectivity Ltd. relative to its intrinsic value. The stock has traded above its DCF value, suggesting potential overvaluation. However, a Forward P/E of 12.97 and a robust Altman Z-score of 4.33 indicate financial stability and growth potential. The earnings yield of 4.81% reflects a solid return on investment, while the Graham Number suggests a more conservative valuation. Overall, the company appears financially healthy, but the market’s optimism may be slightly ahead of fundamentals.

AI Exposure / Tech Reliance

Operating in the Hardware, Equipment & Parts industry, TEL is well-positioned to leverage AI and modern tech shifts. Its technological infrastructure supports adaptability, ensuring resilience in a rapidly evolving market. This positioning is crucial for maintaining competitive advantage and driving future growth.

The Bull Case

For value or GARP investors, TEL presents a compelling opportunity. With an impressive ROIC of 16.76% and a Piotroski F-Score of 8, the company demonstrates strong capital efficiency and operational health. The FCF Yield, though modest, is supported by a solid operating margin of 19.28%, indicating effective cost management and pricing power. These metrics suggest TEL is adept at generating cash and reinvesting it wisely, making it an attractive buy.

The Bear Case

Despite its strengths, TEL faces structural risks. The Price/Book ratio of 4.57 and Price/Sales ratio of 3.25 suggest the stock might be overvalued compared to its peers. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension. While the company has a safe debt profile, these valuation multiples could deter cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$262.57

Institutional Ownership %

1-Year Beta

1.16

Insider Buying % (6 Mo)

Distance to 52-Week High

21.58%

Distance to 52-Week Low

21.94%

EARNINGS SURPRISE %

1.49%

50-DAY SMA

$214.54

200-DAY SMA

$221.43

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.