A Business at a Glance
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ITEM 1. BUSINESS We are a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal, and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. References in this report to “TE Connectivity,” the “Company,” “we,” “us,” or “our” refer to TE Connectivity Ltd. before September 30, 2024 and to TE Connectivity plc on or after September 30, 2024. We became an independent, publicly traded company in 2007; however, through our predecessor companies, we trace our foundations in the connectivity business back to 1941. During fiscal 2024, our board of directors and shareholders approved a change in our jurisdiction of incorporation from Switzerland to Ireland. In connection with the change, TE Connectivity Ltd.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 18.1B | 17.3B | 15.8B | 16.0B | 16.3B | 14.9B |
| Net Income | 2.1B | 1.8B | 3.2B | 1.9B | 2.4B | 2.3B |
| EPS | $6.94 | $6.16 | $10.33 | $6.03 | $7.47 | $6.79 |
| Free Cash Flow | 3.1B | 3.2B | 2.8B | 2.4B | 1.7B | 2.0B |
| ROIC | 12.2% | 12.3% | 18.9% | 14.7% | 17.8% | 18.0% |
| Gross Margin | 35.7% | 35.2% | 34.4% | 31.5% | 32.2% | 32.7% |
| Debt/Equity | 0.51 | 0.52 | 0.41 | 0.42 | 0.47 | 0.43 |
| Dividends/Share | $2.80 | $2.72 | $2.60 | $2.30 | $2.12 | $1.96 |
| Operating Income | 3.5B | 3.2B | 2.8B | 2.3B | 2.8B | 2.4B |
| Operating Margin | 19.3% | 18.6% | 17.6% | 14.4% | 16.9% | 16.3% |
| ROE | 15.9% | 14.8% | 25.8% | 16.5% | 22.5% | 21.3% |
| Shares Outstanding | 293M | 299M | 309M | 317M | 325M | 333M |
TE Connectivity plc passes 5 of 9 quality checks, suggesting mixed fundamentals.
TE Connectivity plc trades at 33.8x 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 21.9x vs a median of 17.5x. The company's 5-year average ROIC is 16.3% with a gross margin of 33.2%. Total shareholder yield (dividends + buybacks) is 3.3%. At current prices, the estimated annualized return to fair value is +14.4%.
TE Connectivity plc (TEL) has a current P/E ratio of 33.8, 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 16.3%. This indicates strong capital allocation and a potential competitive advantage.
TE Connectivity plc (TEL) has a market capitalization of $68.8B. It is classified as a large-cap stock.
Yes, TE Connectivity plc (TEL) pays a dividend with a trailing twelve-month yield of 1.20%. The company also returns capital through share buybacks, with a buyback yield of 2.11%.
Based on historical P/E analysis, TE Connectivity plc (TEL) appears expensive. The current P/E of 33.8 is 122% above its historical median of 15.2. The estimated fair value CAGR (P/E method) is 16.1%.
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 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 0.52. This indicates moderate leverage.
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.