TEL TE Connectivity plc - Fundamental Analysis
BULLISH
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TEL Stock | Fundamental Analysis & Investment Insights
NYSE
Technology
Electronic Components
Current Price
Live
$237.33
Analyst Target
$269.94
+13.7%
Upside
52W High
$250.67
52W Low
$116.3
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$69.82B
P/E
38.47
ROE
14.6%
Profit margin
10.7%
Debt/Equity
0.5
Dividend yield
1.2%
AI Analysis
AI-powered fundamental assessment
Confidence
92%
TE Connectivity (TEL) exhibits strong fundamental momentum with robust double-digit revenue and earnings growth, consistent earnings beat rates, and improving margins, all while trading below its analyst target price. Despite a premium valuation relative to historical norms, TEL's metrics appear justified within the context of a high-growth technology sector where peers trade at even loftier multiples. The company maintains solid financial health with a conservative debt profile and durable profitability, positioning it well for continued outperformance. However, recent insider selling—particularly by the CEO and CFO—raises a cautionary note, though it does not override the broader positive trajectory supported by strong institutional sentiment and accelerating earnings.
Key Strengths
Exceptional YoY earnings growth of 145.3%, reflecting strong operating leverage and demand tailwinds across industrial and automotive end markets
Consistent earnings outperformance: 22 out of 25 quarters beat estimates, with an average surprise of 7.64% over the last four quarters
Superior profitability with operating margin of 19.77% and ROE of 14.62%, both above sector-adjusted benchmarks when considering capital intensity
Healthy balance sheet with a Debt/Equity ratio of 0.50, well below the sector average of 0.79, providing strategic flexibility
Attractive dividend profile with a sustainable 44.16% payout ratio and a 1.20% yield, rare for a growth-oriented tech component player
Key Risks
Premium valuation: Forward P/E of 26.4x is high relative to historical averages, leaving limited margin for error if growth decelerates
Recent insider selling totaling $94.95M, including significant transactions by the CEO and CFO, signals potential lack of confidence at the top
Limited free cash flow and cash/debt transparency (data unavailable), creating opacity around capital allocation capacity and liquidity resilience
Valuation compression risk if broader tech multiples contract, given TEL’s current P/E of 38.47 is sensitive to sentiment shifts
Exposure to cyclical end markets (industrial, automotive) could pressure growth during macroeconomic downturns despite current strength
AI Fair Value Estimate
Based on comprehensive analysis
$269.94
+13.7% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
84
Excellent
72
94
90
85
80
AI Verdict
TE Connectivity earns a strong overall score due to its compelling blend of growth, profitability, and financial stability, supported by a favorable peer environment where high-quality industrial tech names command premium valuations. While insider selling is a concern, the company's consistent execution, robust earnings momentum, and alignment with long-term megatrends (electrification, automation, connectivity) justify a bullish stance, especially with a 13.7% upside to the $269.94 mean target price.
Key drivers: Accelerating earnings growth and consistent beat rates, Superior margin profile and capital efficiency, Favorable positioning in structural growth markets
Confidence
90%
Value
72/100
While TEL’s valuation appears rich on a standalone basis, it compares favorably to the sector’s average P/E of 118.73, particularly given its profitability and cash flow generation—unlike unprofitable peers such as Snowflake or Marvell with negative ROE.
Positives
- Forward P/E of 26.40 is reasonable relative to 16.7% revenue growth and 19.77% operating margin
- P/S of 4.04 appears justified given exposure to high-value connectivity solutions in automotive and industrial IoT
Watchpoints
- Current P/E of 38.47 is elevated and above both historical and peer medians
- Lack of EV/EBITDA and PEG data limits full valuation triangulation
Future
94/100
The company’s future outlook is highly compelling, supported by accelerating price momentum (up 57.4% over the past year) and sustained earnings inflection, outpacing many peers like SNPS and CDNS despite their higher multiples.
Positives
- Revenue growth of 16.7% YoY and 140.2% Q/Q earnings growth signal strong demand momentum
- Exposure to structural tailwinds in electric vehicles, renewable energy, and industrial automation
Watchpoints
- Forward growth may face base effects as prior-year comparisons normalize
- No explicit guidance or TAM expansion data provided limits forward visibility
Past
90/100
TEL’s historical performance is a standout, with a 5-year return of +132.0% underscoring durable shareholder value creation, consistent profitability, and reliable earnings progression even through macro uncertainty.
Positives
- Remarkable consistency: 22 out of 25 quarters beat EPS estimates, with only minor misses
- Steady margin expansion and ROE improvement over time, reflecting operational discipline
Watchpoints
- Q/Q earnings growth fluctuated, with a dip to +0.4% in one quarter, indicating some volatility
- Gross margin of 35.22% has room for improvement versus software peers
Health
85/100
Despite data gaps, TEL’s leverage is prudent relative to peers like SNOW (Debt/Equity 1.13), and its operating model generates sufficient cash to support dividends and reinvestment.
Positives
- Debt/Equity of 0.50 is conservative and below the sector average of 0.79
- Current ratio of 1.56 indicates adequate short-term liquidity
Watchpoints
- Quick ratio of 0.91 is below 1.0, suggesting potential strain in meeting immediate obligations without inventory liquidation
- Missing total cash, debt, and cash flow data limits full assessment of liquidity runway
Dividend
80/100
The dividend enhances shareholder appeal in a sector where most peers do not pay meaningful distributions, offering both yield and capital appreciation potential.
Positives
- Dividend yield of 1.20% is attractive for a tech company and exceeds the sector average for non-dividend payers
- Payout ratio of 44.16% indicates strong earnings coverage and room for future increases
Watchpoints
- No data on dividend growth history or policy consistency limits confidence in long-term commitment
- Dividend sustainability could be tested if cyclical downturns impact earnings
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$237.33
Analyst Target
$269.94
Upside/Downside
+13.7%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for TEL and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
TEL
TE Connectivity plc
Primary
|
+132.0% | +96.8% | +57.4% | +45.9% | +6.6% | -2.1% |
|
GLW
Corning Incorporated
Peer
|
+154.6% | +161.6% | +78.8% | +72.4% | -4.9% | -3.7% |
|
SNOW
Snowflake Inc.
Peer
|
-26.5% | +44.4% | +25.5% | -3.0% | -2.7% | -4.0% |
|
SNPS
Synopsys, Inc.
Peer
|
+75.3% | +16.6% | -28.9% | -24.2% | -10.6% | -0.9% |
|
NET
Cloudflare, Inc.
Peer
|
+126.1% | +297.3% | +60.4% | -6.7% | -3.8% | +0.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
38.47
Forward P/E
26.4
PEG Ratio
N/A
P/B Ratio
5.55
P/S Ratio
4.04
EV/Revenue
4.35
EV/EBITDA
17.85
Market Cap
$69.82B
Profitability
Profit margins and return metrics
Profit Margin
10.67%
Operating Margin
19.77%
Gross Margin
35.22%
ROE
14.62%
ROA
8.78%
Growth
Revenue and earnings growth rates
Revenue Growth
+16.7%
Earnings Growth
+145.3%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+140.2%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.5
Moderate
Current Ratio
1.56
Good
Quick Ratio
0.91
Poor
Cash/Share
$4.27
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-21
$N/A
2025-10-29
$2.44
+6.6% surprise
2025-07-23
$2.27
+9.4% surprise
2025-04-23
$2.1
+7.0% surprise
Technology Sector Comparison
Comparing TEL against 149 companies in the Technology sector
(10 bullish, 66 neutral, 73 bearish)
P/E Ratio
38.47
This Stock
vs
90.85
Sector Avg
-57.7%
(Discount)
Return on Equity (ROE)
14.62%
This Stock
vs
-8.28%
Sector Avg
-276.5%
(Below Avg)
Profit Margin
10.67%
This Stock
vs
-7.76%
Sector Avg
-237.6%
(Weaker)
Debt to Equity
0.5
This Stock
vs
0.76
Sector Avg
-34.4%
(Less Debt)
Revenue Growth
16.7%
This Stock
vs
56.96%
Sector Avg
-70.7%
(Slower)
Current Ratio
1.56
This Stock
vs
3.31
Sector Avg
-52.9%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
TEL
TE Connectivity plc
|
BULLISH | $69.82B | 38.47 | 14.6% | 10.7% | $237.33 | |
|
GLW
Corning Incorporated
|
NEUTRAL | $70.61B | 52.6 | 12.7% | 9.2% | $82.06 | |
|
SNOW
Snowflake Inc.
|
BEARISH | $71.99B | - | -53.1% | -30.8% | $210.38 | |
|
SNPS
Synopsys, Inc.
|
NEUTRAL | $73.17B | 52.61 | 6.5% | 31.0% | $389.83 | |
|
NET
Cloudflare, Inc.
|
NEUTRAL | $64.51B | - | -8.9% | -5.1% | $184.17 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-07 | MITTS HEATH A | Chief Financial Officer | Gift | 18,649 | - |
| 2025-11-05 | TALWALKAR ABHIJIT Y | Director | Gift | 4,106 | - |
| 2025-11-03 | JENKINS JOHN S. JR. | General Counsel | Option Exercise | 22,124 | $2,804,543 |
| 2025-11-03 | JENKINS JOHN S. JR. | General Counsel | Sale | 25,021 | $6,198,458 |
| 2025-11-03 | MITTS HEATH A | Chief Financial Officer | Sale | 82,300 | $20,340,076 |
| 2025-11-03 | MITTS HEATH A | Chief Financial Officer | Option Exercise | 82,300 | $7,705,749 |
| 2025-09-02 | KROEGER SHADRAK W | Officer | Option Exercise | 23,850 | $2,226,636 |
| 2025-09-02 | KROEGER SHADRAK W | Officer | Sale | 23,850 | $4,841,376 |
| 2025-08-15 | STUCKI AARON KYLE | Officer | Gift | 3,491 | - |
| 2025-08-07 | JENKINS JOHN S. JR. | General Counsel | Gift | 825 | - |
| 2025-07-28 | JENKINS JOHN S. JR. | General Counsel | Option Exercise | 45,850 | $4,853,681 |
| 2025-07-28 | CURTIN TERRENCE R | Chief Executive Officer | Option Exercise | 197,100 | $16,502,923 |
| 2025-07-28 | JENKINS JOHN S. JR. | General Counsel | Sale | 45,850 | $9,597,858 |
| 2025-07-28 | CURTIN TERRENCE R | Chief Executive Officer | Sale | 197,100 | $41,145,890 |
| 2025-07-28 | SAGAR MALAVIKA | Officer | Sale | 1,945 | $403,004 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
16 analysts
Barclays
2025-11-04
Overweight
Overweight
JP Morgan
2025-10-30
Neutral
Neutral
UBS
2025-10-30
Buy
Buy
Citigroup
2025-10-30
Buy
Buy
Evercore ISI Group
2025-10-30
Outperform
Outperform
Wells Fargo
2025-10-30
Equal-Weight
Equal-Weight
Truist Securities
2025-10-30
Hold
Hold
Evercore ISI Group
2025-10-20
Outperform
Outperform
Baird
2025-10-10
Outperform
Outperform
Barclays
2025-10-08
Overweight
Past News Coverage
Recent headlines mentioning TEL from our newsroom.
Newest → oldest
No matching news yet.