TE CONNECTIVITY PLC (TEL)
IE000IVNQZ81 - Common Stock
Overall TEL gets a fundamental rating of 7 out of 10. We evaluated TEL against 124 industry peers in the Electronic Equipment, Instruments & Components industry. TEL gets an excellent profitability rating and is at the same time showing great financial health properties. TEL has a correct valuation and a medium growth rate. Finally TEL also has an excellent dividend rating. This makes TEL very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TEL was profitable.
In the past year TEL had a positive cash flow from operations.
Of the past 5 years TEL 4 years were profitable.
TEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TEL (13.97%) is better than 95.94% of its industry peers.
With an excellent Return On Equity value of 25.84%, TEL belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.83%, TEL belongs to the top of the industry, outperforming 91.87% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TEL is significantly above the industry average of 8.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.97% | ||
| ROE | 25.84% | ||
| ROIC | 13.83% |
ROA(3y)11.48%
ROA(5y)8.75%
ROE(3y)21.62%
ROE(5y)16.71%
ROIC(3y)14.05%
ROIC(5y)12.99%
1.3 Margins
TEL has a better Profit Margin (20.15%) than 96.75% of its industry peers.
In the last couple of years the Profit Margin of TEL has grown nicely.
The Operating Margin of TEL (18.83%) is better than 96.75% of its industry peers.
TEL's Operating Margin has improved in the last couple of years.
TEL has a Gross Margin of 34.43%. This is comparable to the rest of the industry: TEL outperforms 55.28% of its industry peers.
TEL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.83% | ||
| PM (TTM) | 20.15% | ||
| GM | 34.43% |
OM growth 3Y1.36%
OM growth 5Y2.3%
PM growth 3Y9.97%
PM growth 5Y8%
GM growth 3Y1.69%
GM growth 5Y1.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TEL is creating value.
TEL has less shares outstanding than it did 1 year ago.
TEL has less shares outstanding than it did 5 years ago.
TEL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.70 indicates that TEL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.70, TEL is doing good in the industry, outperforming 73.17% of the companies in the same industry.
TEL has a debt to FCF ratio of 1.50. This is a very positive value and a sign of high solvency as it would only need 1.50 years to pay back of all of its debts.
TEL has a Debt to FCF ratio of 1.50. This is in the better half of the industry: TEL outperforms 78.86% of its industry peers.
TEL has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, TEL is doing worse than 60.98% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for TEL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 4.7 |
ROIC/WACC2.9
WACC4.77%
2.3 Liquidity
TEL has a Current Ratio of 1.61. This is a normal value and indicates that TEL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.61, TEL is doing worse than 75.61% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that TEL should not have too much problems paying its short term obligations.
The Quick ratio of TEL (1.08) is worse than 78.05% of its industry peers.
TEL does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
TEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.33%, which is quite good.
The Earnings Per Share has been growing slightly by 6.41% on average over the past years.
Looking at the last year, TEL shows a decrease in Revenue. The Revenue has decreased by -1.18% in the last year.
TEL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.33% yearly.
EPS 1Y (TTM)12.33%
EPS 3Y5.06%
EPS 5Y6.41%
EPS Q2Q%9.55%
Revenue 1Y (TTM)-1.18%
Revenue growth 3Y2.02%
Revenue growth 5Y3.33%
Sales Q2Q%0.82%
3.2 Future
TEL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.78% yearly.
Based on estimates for the next years, TEL will show a small growth in Revenue. The Revenue will grow by 5.58% on average per year.
EPS Next Y8.16%
EPS Next 2Y9.63%
EPS Next 3Y9.03%
EPS Next 5Y7.78%
Revenue Next Year4.69%
Revenue Next 2Y5.59%
Revenue Next 3Y5.17%
Revenue Next 5Y5.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.91 indicates a rather expensive valuation of TEL.
Compared to the rest of the industry, the Price/Earnings ratio of TEL indicates a somewhat cheap valuation: TEL is cheaper than 77.24% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (28.96), we can say TEL is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.41 indicates a rather expensive valuation of TEL.
76.42% of the companies in the same industry are more expensive than TEL, based on the Price/Forward Earnings ratio.
TEL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
TEL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TEL is cheaper than 73.17% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEL indicates a rather cheap valuation: TEL is cheaper than 80.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.14 | ||
| EV/EBITDA | 12.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TEL does not grow enough to justify the current Price/Earnings ratio.
TEL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)3.1
EPS Next 2Y9.63%
EPS Next 3Y9.03%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.95, TEL pays a better dividend. On top of this TEL pays more dividend than 93.50% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.23, TEL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of TEL is nicely growing with an annual growth rate of 6.79%!
TEL has paid a dividend for at least 10 years, which is a reliable track record.
TEL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.79%
Div Incr Years14
Div Non Decr Years17
5.3 Sustainability
TEL pays out 23.80% of its income as dividend. This is a sustainable payout ratio.
TEL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP23.8%
EPS Next 2Y9.63%
EPS Next 3Y9.03%
TE CONNECTIVITY PLC
NYSE:TEL (11/21/2024, 8:04:00 PM)
After market: 150.52 0 (0%)150.52
+2.7 (+1.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap45.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 18.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.44
PEG (5Y)3.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.97% | ||
| ROE | 25.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.83% | ||
| PM (TTM) | 20.15% | ||
| GM | 34.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.33%
EPS 3Y5.06%
EPS 5Y
EPS Q2Q%
EPS Next Y8.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.18%
Revenue growth 3Y2.02%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y