Skip to Content
Morningstar

TE Connectivity Ltd TEL

Morningstar Rating
Unlock
Stock XNYS Rating as of
$131.23 +1.54 (1.19%)
View Full Chart
As of Delayed Price Pre-Open: $131.23 0.00
Unlock Our Analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

TE Connectivity Earnings: Auto Strength Offsetting Weakness Elsewhere as We Raise Our Fair Value Estimate to $135

William Kerwin

We raise our fair value estimate for shares of narrow-moat TE Connectivity to $135, from $128, as we bake in expectations for a recovery in results beginning in fiscal 2024. Fiscal fourth-quarter results and fiscal first-quarter guidance were roughly in line with our model. TE is seeing pockets of weak demand in industrial equipment, heavy vehicles, and telecom customers, but we're encouraged by ongoing good results in automotive sales and growth for artificial intelligence, or AI, related sales. We think weak markets will last through the first half of 2024, but that TE can grow modestly in fiscal 2024 and see much more meaningful growth and margin expansion in fiscal 2025. We see shares as undervalued.

Read Full Report

Price vs Fair Value

View History
TEL is trading at a 3% discount.
Price
$131.23
Fair Value
$625.00
Uncertainty
Medium
1-Star Price
$146.53
5-Star Price
$77.40
Economic Moat
Kkqfy
Capital Allocation
Ygrwqdmh

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.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if TEL is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$129.69
Day Range
$130.28–131.88
52-Week Range
$111.94–146.60
Bid/Ask
$129.11 / $209.96
Market Cap
$40.78 Bil
Volume/Avg
35 / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
19.50
Price/Sales
2.59
Dividend Yield
1.78%
Dividend Yield (Forward)
1.80%
Total Yield
4.09%

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

View More
Metric
TEL
APTV
ST
Price/Earnings (Normalized)
 19.5017.108.79
Price/Book Value
 3.542.121.55
Price/Sales
 2.591.151.24
Price/Cash Flow
 13.3210.927.83
Price/Earnings
TEL
APTV
ST

Financial Strength

Metric
TEL
APTV
ST
Quick Ratio
 1.041.221.90
Current Ratio
 1.771.812.86
Interest Coverage
 28.605.593.42
Quick Ratio
TEL
APTV
ST

Profitability

Metric
TEL
APTV
ST
Return on Assets (Normalized)
 9.98%6.13%6.71%
Return on Equity (Normalized)
 19.05%14.59%18.17%
Return on Invested Capital (Normalized)
 13.83%9.09%9.80%
Return on Assets
TEL
APTV
ST

Electronic Components Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
APH
Amphenol Corp Class ACpmp$55.2 Bil
HNHPF
Hon Hai Precision Industry Co Ltd DRYfgf$45.0 Bil
MRAAY
Murata Manufacturing Co Ltd ADRMrvnsbh$37.1 Bil
MRAAF
Murata Manufacturing Co LtdYdxrlr$37.1 Bil
GLW
Corning IncMmtcmcy$24.6 Bil
TTDKY
TDK Corp ADRDjdy$17.3 Bil
TTDKF
TDK CorpWrk$17.3 Bil
JBL
Jabil IncQmv$14.6 Bil
LFUS
Littelfuse IncSvssc$6.0 Bil