A Business at a Glance
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TE Connectivity plc
TEL
$60.7B
Mkt Cap
$202.94
+2.09%
TE Connectivity plc (TEL) has a current P/E ratio of 29.2, compared to its historical median P/E of 15.2. The stock is currently considered Expensive based on its historical valuation range.
TE Connectivity plc (TEL) has a 5-year average return on invested capital (ROIC) of 16.5%. This indicates strong capital allocation and a potential competitive advantage.
TE Connectivity plc (TEL) has a market capitalization of $60.0B. It is classified as a large-cap stock.
Yes, TE Connectivity plc (TEL) pays a dividend with a trailing twelve-month yield of 1.40%. The company also returns capital through share buybacks, with a buyback yield of 2.59%.
Based on historical P/E analysis, TE Connectivity plc (TEL) appears expensive. The current P/E of 29.2 is 92% above its historical median of 15.2. The estimated fair value CAGR (P/E method) is 16.8%.
TE Connectivity plc (TEL) operates in the Wholesale-Electronic Parts & Equipment, Nec industry, within the Consumer Cyclical sector.
TE Connectivity plc (TEL) reported annual revenue of $17.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
TE Connectivity is a global industrial technology leader providing connectivity and sensor solutions that enable the distribution of power, signal, and data across transportation, energy, automation, data centers, and other advanced applications. The company operates through two segments: Transportation Solutions (54% of fiscal 2025 sales), which supplies connectors, sensors, and related components for automotive, commercial transportation, and sensor applications; and Industrial Solutions (46% of sales), which provides connectivity products for digital data networks, automation and connected living, aerospace and defense, energy, and medical applications. TE's business model is built on direct sales (approximately 75% of net sales) to manufacturers globally, supplemented by third-party distributors, with a strong local presence across approximately 130 countries and distribution centers positioned near customer locations. The company serves a combined addressable market of approximately $200 billion and maintains a diversified customer base with no single customer representing a significant portion of sales, which reduces cyclicality and provides operational resilience. TE's competitive positioning is supported by a broad product portfolio, engineering capability, global manufacturing footprint with in-region localization strategy, and intellectual property including a large patent portfolio, enabling it to serve leading customers across multiple end-markets and geographies.
【Strong momentum continuing into 2026】 Management expects fiscal 2026 to deliver well over $2 billion of growth with the majority of businesses growing double digits year-over-year, ahead of the company's long-term through-cycle target of 6–8 points of annual average growth. Digital Data Networks is experiencing exceptional momentum with AI revenues now expected to be approximately $150 million higher than previously guided, driven by strong program wins and customer engagement with hyperscalers, with backlog building into 2027. Commercial transportation is showing broad-based recovery across all regions after two years of cyclical declines, while aerospace and defense continues to build backlog with extended lead times. The company is managing inflationary pressures and tariff impacts through factory footprint optimization, targeted pricing actions, and ongoing productivity initiatives, with expectations for continued margin expansion as volumes grow and capacity investments in high-growth programs like AI ramp through the second half of the year.
| Metric | Target | Period |
|---|---|---|
| Sales | $5.0 billion | Q3 FY2026 |
| Adjusted EPS | $2.83 | Q3 FY2026 |
| AI revenues | approximately $150 million higher than prior guidance | FY2026 |
| Full-year sales growth | well over $2 billion | FY2026 |
| CapEx | approximately 6% of revenue | FY2026 |
Sales (Q3 FY2026): “As we look to the third quarter, we are expecting third quarter sales to be $5 billion, which reflect an increase of 10% versus the prior year with year-over-year and sequential growth in both of our segments.”
Adjusted EPS (Q3 FY2026): “We expect adjusted earnings per share to be up 17% year-over-year to around $2.83.”
AI revenues (FY2026): “We now expect our AI revenues in fiscal 2026 to be about $150 million higher than our view 90 days ago, and this entire increase will be in the second half of the year and reflects the increased momentum that I talked about in orders.”
Full-year sales growth (FY2026): “Last year, we delivered $1.4 billion of growth as a company, and this year we expect to deliver well over $2 billion of growth, with the majority of our businesses growing double digits year-over-year.”
CapEx (FY2026): “We talked a little bit about it in prior calls, but you should expect CapEx this year to run about 6% of revenue.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 18.7B | 17.3B | 15.8B | 16.0B | 16.3B | 14.9B |
| Net Income | 2.9B | 1.8B | 3.2B | 1.9B | 2.4B | 2.3B |
| EPS | $9.66 | $6.16 | $10.33 | $6.03 | $7.47 | $6.79 |
| Free Cash Flow | 3.4B | 3.2B | 2.8B | 2.4B | 1.7B | 2.0B |
| ROIC | 16.5% | 12.3% | 19.5% | 14.3% | 18.2% | 18.2% |
| Gross Margin | 36.1% | 35.2% | 34.4% | 31.5% | 32.2% | 32.7% |
| Debt/Equity | 0.43 | 0.45 | 0.34 | 0.36 | 0.39 | 0.38 |
| Dividends/Share | $2.83 | $2.72 | $2.48 | $2.30 | $2.12 | $1.96 |
| Operating Income | 3.7B | 3.2B | 2.8B | 2.3B | 2.8B | 2.4B |
| Operating Margin | 19.7% | 18.6% | 17.6% | 14.4% | 16.9% | 16.3% |
| ROE | 22.0% | 14.8% | 26.7% | 17.1% | 22.7% | 22.6% |
| Shares Outstanding | 296M | 299M | 309M | 317M | 325M | 333M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 12.0B | 12.2B | 11.4B | 12.2B | 14.0B | 13.4B | 12.2B | 14.9B | 16.3B | 16.0B | 15.8B | 17.3B | 18.7B |
| Gross Margin | 33.2% | 33.4% | 33.7% | 34.3% | 33.9% | 32.7% | 30.7% | 32.7% | 32.2% | 31.5% | 34.4% | 35.2% | 36.1% |
| R&D | 484M | 540M | 525M | 548M | 606M | 572M | 539M | 612M | 610M | 593M | 621M | 699M | 699M |
| SG&A | 1.5B | 1.5B | 1.4B | 1.5B | 1.6B | 1.5B | 1.4B | 1.5B | 1.6B | 1.7B | 1.7B | 1.9B | 2.1B |
| EBIT | 1.8B | 1.7B | 1.8B | 1.9B | 2.3B | 2.0B | 537M | 2.4B | 2.8B | 2.3B | 2.8B | 3.2B | 3.7B |
| Op. Margin | 15.1% | 14.3% | 15.9% | 15.4% | 16.7% | 14.7% | 4.4% | 16.3% | 16.9% | 14.4% | 17.6% | 18.6% | 19.7% |
| Net Income | 1.8B | 2.4B | 2.0B | 1.7B | 2.6B | 1.8B | -241M | 2.3B | 2.4B | 1.9B | 3.2B | 1.8B | 2.9B |
| Net Margin | 14.9% | 19.8% | 17.7% | 13.8% | 18.3% | 13.7% | -2.0% | 15.2% | 14.9% | 11.9% | 20.2% | 10.7% | 15.5% |
| Non-Recurring | 23M | 93M | 121M | 146M | 140M | 255M | 1.2B | 208M | 137M | 260M | 144M | 113M | 39M |
| Returns on Capital | |||||||||||||
| ROIC | 16.8% | 13.8% | 16.8% | 13.7% | 17.8% | 14.9% | 2.5% | 18.2% | 18.2% | 14.3% | 19.5% | 12.3% | 16.5% |
| ROE | 20.5% | 26.0% | 22.2% | 18.5% | 24.9% | 17.2% | -2.4% | 22.6% | 22.7% | 17.1% | 26.7% | 14.8% | 22.0% |
| ROA | 9.2% | 11.9% | 10.5% | 9.1% | 12.9% | 9.2% | -1.2% | 11.1% | 11.5% | 9.0% | 14.3% | 7.7% | 11.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 2.1B | 1.9B | 1.9B | 2.3B | 2.5B | 2.4B | 2.0B | 2.7B | 2.5B | 3.1B | 3.5B | 4.1B | 4.4B |
| Free Cash Flow | 1.4B | 1.3B | 1.3B | 1.6B | 1.5B | 1.7B | 1.4B | 2.0B | 1.7B | 2.4B | 2.8B | 3.2B | 3.4B |
| Owner Earnings | 1.5B | 1.2B | 1.3B | 1.6B | 1.7B | 1.7B | 1.2B | 1.8B | 1.6B | 2.2B | 2.5B | 3.2B | 3.3B |
| CapEx | 635M | 600M | 603M | 679M | 935M | 749M | 560M | 690M | 768M | 732M | 680M | 936M | 1.0B |
| Maint. CapEx | 551M | 616M | 560M | 611M | 667M | 690M | 711M | 769M | 785M | 794M | 826M | 838M | 962M |
| Growth CapEx | 84M | 0 | 43M | 68M | 268M | 59M | 0 | 0 | 0 | 0 | 0 | 98M | 67M |
| D&A | 551M | 616M | 560M | 611M | 667M | 690M | 711M | 769M | 785M | 794M | 826M | 838M | 962M |
| CapEx/OCF | 30.5% | 31.4% | 32.3% | 29.3% | 38.1% | 30.9% | 28.1% | 25.8% | 31.1% | 23.4% | 19.6% | 22.6% | 23.3% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 443M | 502M | 509M | 546M | 588M | 608M | 625M | 647M | 685M | 725M | 760M | 803M | 838M |
| Dividend Yield | 2.3% | 2.3% | 2.7% | 2.4% | 2.0% | 2.4% | 2.4% | 1.6% | 1.6% | 1.9% | 1.8% | 1.7% | 1.4% |
| Share Buybacks | 578M | 1.0B | 2.8B | 614M | 879M | 1.1B | 523M | 831M | 1.4B | 945M | 2.1B | 1.3B | 1.6B |
| Buyback Yield | 2.9% | 5.3% | 13.9% | 2.4% | 3.2% | 3.8% | 1.8% | 1.9% | 4.0% | 2.5% | 4.5% | 2.1% | 2.6% |
| Stock-Based Comp | 77M | 89M | 87M | 95M | 95M | 75M | 74M | 94M | 119M | 123M | 127M | 149M | 172M |
| Debt Repayment | 360M | 473M | 501M | 0 | 708M | 691M | 352M | 708M | 558M | 591M | 352M | 580M | 580M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.4B | 557M | 3.4B | 3.1B | 3.2B | 3.0B | 3.2B | 2.9B | 3.1B | 2.5B | 2.9B | 4.4B | 4.6B |
| Cash & Equiv. | 2.5B | 3.3B | 647M | 1.2B | 848M | 927M | 945M | 1.2B | 1.1B | 1.7B | 1.3B | 1.3B | 1.1B |
| Long-Term Debt | 3.3B | 3.4B | 3.7B | 3.6B | 3.0B | 3.4B | 3.5B | 3.6B | 3.3B | 3.5B | 3.3B | 4.8B | 5.6B |
| Debt/Equity | 0.43 | 0.41 | 0.48 | 0.45 | 0.37 | 0.38 | 0.44 | 0.38 | 0.39 | 0.36 | 0.34 | 0.45 | 0.43 |
| Interest Coverage | 14.2 | 12.9 | 14.2 | 14.4 | 21.8 | 29.1 | 11.2 | 43.5 | 41.8 | 28.8 | 39.9 | 41.7 | 41.7 |
| Equity | 9.0B | 9.6B | 8.5B | 9.8B | 10.8B | 10.6B | 9.4B | 10.6B | 10.8B | 11.6B | 12.4B | 12.6B | 13.2B |
| Total Assets | 20.1B | 20.6B | 17.6B | 19.4B | 20.4B | 19.7B | 19.2B | 21.5B | 20.8B | 21.7B | 22.9B | 25.1B | 25.7B |
| Total Liabilities | 11.1B | 11.0B | 9.1B | 9.7B | 9.6B | 9.1B | 9.7B | 10.7B | 9.9B | 10.1B | 10.4B | 12.4B | 12.3B |
| Intangibles | 1.1B | 1.6B | 1.9B | 1.8B | 1.7B | 1.6B | 1.6B | 1.5B | 1.3B | 1.2B | 1.2B | 2.2B | 2.1B |
| Retained Earnings | 4.3B | 6.7B | 8.7B | 10.2B | 12.1B | 12.3B | 10.3B | 11.7B | 12.8B | 12.9B | 14.5B | 13.9B | 13.9B |
| Working Capital | 4.9B | 4.3B | 1.7B | 2.1B | 1.8B | 2.0B | 2.1B | 2.6B | 2.6B | 3.4B | 2.9B | 2.8B | 3.9B |
| Current Assets | 8.9B | 7.9B | 4.8B | 5.9B | 6.2B | 5.6B | 5.8B | 7.3B | 7.3B | 7.9B | 7.6B | 8.0B | 8.2B |
| Current Liabilities | 4.0B | 3.6B | 3.1B | 3.8B | 4.4B | 3.5B | 3.7B | 4.7B | 4.6B | 4.5B | 4.7B | 5.1B | 4.4B |
| Per Share Data | |||||||||||||
| EPS | 4.27 | 5.89 | 5.44 | 4.70 | 7.27 | 5.42 | -0.73 | 6.79 | 7.47 | 6.03 | 10.33 | 6.16 | 9.66 |
| Owner EPS | 3.49 | 2.98 | 3.52 | 4.51 | 4.79 | 4.87 | 3.66 | 5.44 | 4.81 | 6.99 | 8.17 | 10.54 | 11.11 |
| Book Value | 21.59 | 23.33 | 22.98 | 27.23 | 30.70 | 31.07 | 28.42 | 31.93 | 33.23 | 36.47 | 39.97 | 42.09 | 44.74 |
| Cash Flow/Share | 4.99 | 4.70 | 5.27 | 6.48 | 6.95 | 7.12 | 6.03 | 8.04 | 7.59 | 9.89 | 11.25 | 13.84 | 13.08 |
| Dividends/Share | 1.08 | 1.24 | 1.40 | 1.54 | 1.68 | 1.80 | 1.88 | 1.96 | 2.12 | 2.30 | 2.48 | 2.72 | 2.83 |
| Shares Out. | 417.1M | 410.9M | 369.3M | 358.1M | 352.8M | 340.2M | 330.1M | 333.0M | 325.0M | 316.7M | 309.1M | 299.0M | 295.8M |
| Valuation | |||||||||||||
| P/E Ratio | 11.2 | 8.0 | 10.0 | 15.2 | 10.6 | 15.4 | N/A | 19.4 | 14.6 | 19.8 | 14.4 | 35.1 | 21.0 |
| P/FCF | 13.8 | 14.5 | 15.0 | 15.6 | 18.0 | 17.0 | 20.6 | 22.0 | 20.9 | 15.8 | 16.4 | 20.2 | 17.7 |
| EV/EBIT | 10.8 | 9.8 | 12.2 | 15.0 | 13.1 | 15.7 | 60.3 | 18.9 | 13.9 | 17.1 | 17.3 | 21.4 | 17.5 |
| Price/Book | 2.2 | 2.0 | 2.4 | 2.6 | 2.5 | 2.7 | 3.1 | 4.1 | 3.3 | 3.3 | 3.7 | 5.1 | 4.5 |
| Price/Sales | 1.6 | 1.8 | 1.5 | 1.9 | 2.1 | 1.9 | 2.1 | 2.7 | 2.6 | 2.4 | 2.7 | 2.8 | 3.2 |
| FCF Yield | 7.3% | 6.9% | 6.7% | 6.4% | 5.6% | 5.9% | 4.9% | 4.5% | 4.8% | 6.3% | 6.1% | 5.0% | 5.6% |
| Market Cap | 19.9B | 19.3B | 20.1B | 25.6B | 27.3B | 28.4B | 29.4B | 43.8B | 35.5B | 37.8B | 45.8B | 64.7B | 60.0B |
| Avg. Price | 46.65 | 52.95 | 51.03 | 63.49 | 82.95 | 75.68 | 78.46 | 119.70 | 128.14 | 120.72 | 137.43 | 160.88 | 202.94 |
| Year-End Price | 47.74 | 47.06 | 54.46 | 71.45 | 77.38 | 83.36 | 89.17 | 131.41 | 109.07 | 119.34 | 148.30 | 216.38 | 202.94 |
TE Connectivity plc passes 5 of 9 quality checks, suggesting mixed fundamentals.
TE Connectivity plc trades at 29.2x trailing earnings, compared to its 15-year median P/E of 15.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 19.0x vs a median of 17.5x. The company's 5-year average ROIC is 16.5% with a gross margin of 33.2%. Total shareholder yield (dividends + buybacks) is 4.0%. At current prices, the estimated annualized return to fair value is +13.9%.
TE Connectivity plc (TEL) has a net profit margin of 10.7%. This is a healthy margin.
TE Connectivity plc (TEL) generated $3.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TE Connectivity plc (TEL) has a debt-to-equity ratio of 0.45. This indicates a conservatively financed balance sheet.
TE Connectivity plc (TEL) reported earnings per share (EPS) of $6.16 in its most recent fiscal year.
TE Connectivity plc (TEL) has a return on equity (ROE) of 14.8%. This indicates moderate shareholder returns.
TE Connectivity plc (TEL) has a 5-year average gross margin of 33.2%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for TE Connectivity plc (TEL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TE Connectivity plc (TEL) has a book value per share of $42.09, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects fiscal 2026 to deliver well over $2 billion of growth with the majority of businesses growing double digits year-over-year, ahead of the company's long-term through-cycle target of 6–8 points of annual average growth. Digital Data Networks is experiencing exceptional momentum with AI revenues now expected to be approximately $150 million higher than previously guided, driven by strong program wins and customer engagement with hyperscalers, with backlog building into 2027. Commercial transportation is showing broad-based recovery across all regions after two years of cyclical declines, while aerospace and defense continues to build backlog with extended lead times. The company is managing inflationary pressures and tariff impacts through factory footprint optimization, targeted pricing actions, and ongoing productivity initiatives, with expectations for continued margin expansion as volumes grow and capacity investments in high-growth programs like AI ramp through the second half of the year.
Based on recent SEC filings and earnings calls, TE Connectivity plc (TEL) has provided the following forward guidance: Sales: $5.0 billion (Q3 FY2026); Adjusted EPS: $2.83 (Q3 FY2026); AI revenues: approximately $150 million higher than prior guidance (FY2026); Full-year sales growth: well over $2 billion (FY2026); CapEx: approximately 6% of revenue (FY2026).