TE CONNECTIVITY PLC (TEL)
IE000IVNQZ81 - Common Stock
TEL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 127 industry peers in the Electronic Equipment, Instruments & Components industry. TEL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TEL has a decent growth rate and is not valued too expensively. Finally TEL also has an excellent dividend rating. With these ratings, TEL could be worth investigating further for dividend and quality investing!.
1. Profitability
1.1 Basic Checks
TEL had positive earnings in the past year.
In the past year TEL had a positive cash flow from operations.
TEL had positive earnings in 4 of the past 5 years.
In the past 5 years TEL always reported a positive cash flow from operatings.
1.2 Ratios
TEL's Return On Assets of 13.97% is amongst the best of the industry. TEL outperforms 94.40% of its industry peers.
With an excellent Return On Equity value of 25.84%, TEL belongs to the best of the industry, outperforming 94.40% of the companies in the same industry.
TEL has a better Return On Invested Capital (13.83%) than 91.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEL is significantly above the industry average of 8.74%.
| 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 Profit Margin of 20.15%. This is amongst the best in the industry. TEL outperforms 96.00% of its industry peers.
In the last couple of years the Profit Margin of TEL has grown nicely.
TEL's Operating Margin of 18.83% is amongst the best of the industry. TEL outperforms 97.60% of its industry peers.
TEL's Operating Margin has improved in the last couple of years.
TEL has a Gross Margin (34.43%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TEL is creating value.
Compared to 1 year ago, TEL has less shares outstanding
The number of shares outstanding for TEL has been reduced compared to 5 years ago.
Compared to 1 year ago, TEL has an improved debt to assets ratio.
2.2 Solvency
TEL has an Altman-Z score of 4.62. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
TEL's Altman-Z score of 4.62 is fine compared to the rest of the industry. TEL outperforms 71.20% of its industry peers.
The Debt to FCF ratio of TEL is 1.50, which is an excellent value as it means it would take TEL, only 1.50 years of fcf income to pay off all of its debts.
TEL's Debt to FCF ratio of 1.50 is fine compared to the rest of the industry. TEL outperforms 79.20% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that TEL is not too dependend on debt financing.
The Debt to Equity ratio of TEL (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 4.62 |
ROIC/WACC2.06
WACC6.7%
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 74.40% 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.
Looking at the Quick ratio, with a value of 1.08, TEL is doing worse than 76.00% of the companies in the same industry.
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.
TEL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.41% yearly.
TEL shows a decrease in Revenue. In the last year, the revenue decreased by -1.18%.
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
The Earnings Per Share is expected to grow by 10.04% on average over the next years. This is quite good.
TEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.87% yearly.
EPS Next Y8.25%
EPS Next 2Y9.89%
EPS Next 3Y9.6%
EPS Next 5Y10.04%
Revenue Next Year4.7%
Revenue Next 2Y5.7%
Revenue Next 3Y5.46%
Revenue Next 5Y5.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.00 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 80.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TEL to the average of the S&P500 Index (27.73), we can say TEL is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.56, which indicates a rather expensive current valuation of TEL.
Based on the Price/Forward Earnings ratio, TEL is valued a bit cheaper than 77.60% of the companies in the same industry.
TEL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 17.56 |
4.2 Price Multiples
TEL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TEL is cheaper than 76.80% of the companies in the same industry.
83.20% of the companies in the same industry are more expensive than TEL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | 12.04 |
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)2.3
PEG (5Y)2.96
EPS Next 2Y9.89%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
TEL has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
TEL's Dividend Yield is rather good when compared to the industry average which is at 1.85. TEL pays more dividend than 93.60% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, TEL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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
23.80% of the earnings are spent on dividend by TEL. This is a low number and sustainable payout ratio.
The dividend of TEL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.8%
EPS Next 2Y9.89%
EPS Next 3Y9.6%
TE CONNECTIVITY PLC
NYSE:TEL (12/20/2024, 8:04:00 PM)
After market: 143.67 0 (0%)143.67
-0.22 (-0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners94.49%
Inst Owner Change-8.33%
Ins Owners0.12%
Ins Owner Change4.42%
Market Cap42.98B
Analysts74.4
Price Target172.63 (20.16%)
Short Float %1.01%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Dividend Growth(5Y)6.79%
DP23.8%
Div Incr Years14
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.47%
Min EPS beat(2)-0.77%
Max EPS beat(2)1.7%
EPS beat(4)3
Avg EPS beat(4)2.03%
Min EPS beat(4)-0.77%
Max EPS beat(4)6.47%
EPS beat(8)7
Avg EPS beat(8)2.22%
EPS beat(12)10
Avg EPS beat(12)3.04%
EPS beat(16)14
Avg EPS beat(16)4.32%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)0.25%
Revenue beat(4)1
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)0.25%
Revenue beat(8)3
Avg Revenue beat(8)-0.09%
Revenue beat(12)7
Avg Revenue beat(12)0.96%
Revenue beat(16)11
Avg Revenue beat(16)1.6%
PT rev (1m)-0.82%
PT rev (3m)-1.08%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-2.87%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.71%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 17.56 | ||
| P/S | 2.71 | ||
| P/FCF | 15.37 | ||
| P/OCF | 12.36 | ||
| P/B | 3.48 | ||
| P/tB | 7.99 | ||
| EV/EBITDA | 12.04 |
EPS(TTM)7.56
EY5.26%
EPS(NY)8.18
Fwd EY5.7%
FCF(TTM)9.35
FCFY6.51%
OCF(TTM)11.62
OCFY8.09%
SpS52.96
BVpS41.3
TBVpS17.98
PEG (NY)2.3
PEG (5Y)2.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.97% | ||
| ROE | 25.84% | ||
| ROCE | 16.47% | ||
| ROIC | 13.83% | ||
| ROICexc | 14.92% | ||
| ROICexgc | 25.52% | ||
| OM | 18.83% | ||
| PM (TTM) | 20.15% | ||
| GM | 34.43% | ||
| FCFM | 17.65% |
ROA(3y)11.48%
ROA(5y)8.75%
ROE(3y)21.62%
ROE(5y)16.71%
ROIC(3y)14.05%
ROIC(5y)12.99%
ROICexc(3y)15.24%
ROICexc(5y)14.04%
ROICexgc(3y)26.54%
ROICexgc(5y)25.01%
ROCE(3y)16.74%
ROCE(5y)15.48%
ROICexcg growth 3Y-1.57%
ROICexcg growth 5Y1.2%
ROICexc growth 3Y0.91%
ROICexc growth 5Y3.66%
OM growth 3Y1.36%
OM growth 5Y2.3%
PM growth 3Y9.97%
PM growth 5Y8%
GM growth 3Y1.69%
GM growth 5Y1.05%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.5 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 82.32% | ||
| Cap/Sales | 4.29% | ||
| Interest Coverage | 46.61 | ||
| Cash Conversion | 91.28% | ||
| Profit Quality | 87.6% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 4.62 |
F-Score7
WACC6.7%
ROIC/WACC2.06
Cap/Depr(3y)90.78%
Cap/Depr(5y)88.17%
Cap/Sales(3y)4.52%
Cap/Sales(5y)4.56%
Profit Quality(3y)94.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.33%
EPS 3Y5.06%
EPS 5Y6.41%
EPS Q2Q%9.55%
EPS Next Y8.25%
EPS Next 2Y9.89%
EPS Next 3Y9.6%
EPS Next 5Y10.04%
Revenue 1Y (TTM)-1.18%
Revenue growth 3Y2.02%
Revenue growth 5Y3.33%
Sales Q2Q%0.82%
Revenue Next Year4.7%
Revenue Next 2Y5.7%
Revenue Next 3Y5.46%
Revenue Next 5Y5.87%
EBIT growth 1Y11.51%
EBIT growth 3Y3.4%
EBIT growth 5Y5.71%
EBIT Next Year34.59%
EBIT Next 3Y14.67%
EBIT Next 5Y12.72%
FCF growth 1Y16.54%
FCF growth 3Y12.09%
FCF growth 5Y10.83%
OCF growth 1Y11.02%
OCF growth 3Y9.12%
OCF growth 5Y7.5%