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TE Connectivity Ltd TEL

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Stock XNYS Rating as of
$140.48 +0.48 (0.34%)
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As of Delayed Price Closed
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Company Report

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TE Connectivity Earnings: Our Valuation Intact With Solid Performance Against End Market Weakness

William Kerwin

We maintain our $135 per share fair value estimate for narrow-moat TE Connectivity after its March quarter results fit our expectations. Our long-term thesis is intact. TE’s automotive demand is holding steady to start the year, reflecting stable auto production and a continued mix shift toward electric vehicles. Industrial and telecom demand have been weaker this year, but we see guidance for communications growth next quarter as positive. TE’s profitability has remained impressive in fiscal 2024, which we credit to consolidation of the firm’s manufacturing footprint. We see shares as fairly valued.

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Price vs Fair Value

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TEL is trading within a range we consider fairly valued.
Price
$143.23
Fair Value
$986.00
Uncertainty
Medium
1-Star Price
$538.74
5-Star Price
$14.50
Economic Moat
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Capital Allocation
Bplbhbz

Bulls Say, Bears Say

Bulls

TE Connectivity is a leader in the automotive connector and sensor market, enabling OEMs to build more advanced and efficient electric and autonomous vehicles.

Bears

Revenue concentration in the automotive and commercial transportation markets makes TE susceptible to downturns in production, as seen in 2020.

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News

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Trading Information

Previous Close Price
$140.00
Day Range
$138.49–141.45
52-Week Range
$115.00–147.98
Bid/Ask
$56.48 / $147.48
Market Cap
$43.38 Bil
Volume/Avg
3.2 Mil / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
19.89
Price/Sales
2.77
Dividend Yield (Trailing)
1.68%
Dividend Yield (Forward)
1.85%
Total Yield
4.82%

Company Profile

TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Sector
Technology
Industry
Electronic Components
Stock Style Box
Mid Core
Total Number of Employees
90,000
Website
https://www.te.com

Competitors

Valuation

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Metric
TEL
APH
ST
Price/Earnings (Normalized)
 19.8938.649.53
Price/Book Value
 3.458.061.73
Price/Sales
 2.775.641.29
Price/Cash Flow
 12.8428.888.48
Price/Earnings
TEL
APH
ST

Financial Strength

Metric
TEL
APH
ST
Quick Ratio
 1.001.361.52
Current Ratio
 1.862.172.55
Interest Coverage
 32.2918.600.93
Quick Ratio
TEL
APH
ST

Profitability

Metric
TEL
APH
ST
Return on Assets (Normalized)
 10.18%11.95%6.60%
Return on Equity (Normalized)
 19.06%24.58%17.52%
Return on Invested Capital (Normalized)
 13.92%16.36%9.63%
Return on Assets
TEL
APH
ST
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