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TE Connectivity plc

Rank #305Capital Return

TEL · NYSE · Technology

TE Connectivity plc (TEL) — Rank #305 by gross profitability (GP/assets 0.23) · ROE 13.9% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · CIK 0001385157 · all metrics point-in-time as of the filing date.

About

TE Connectivity plc, together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the Asia–Pacific, and the Americas.

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The company operates through two reportable segments, Transportation Solutions and Industrial Solutions. It provides antennas, application tooling, cable assemblies, connectors, electromagnetic compatibility/electromagnetic interference solutions, energy and power, fiber optics, heat shrink tubing, identification and labeling, medical components, passive components, relays and contactors, sensors, switches, terminals and splices, wires and cables, and wire protection and management solutions. The company also offers training and other services, including 3D printing for production, back shells prototyping, electrical installation training, HarnWare software, machine tooling service and repair, medical device design services, microfluidic devices, and sensor manufacturing services as well as conducts automotive webinars. It serves 5G and wireless equipment, aerospace, appliances, automation and control, automotive, autosport, commercial and industrial vehicles, connected home, data centers and artificial intelligence, defense and military, energy solutions, e-mobility, industrial machinery, intelligent buildings, IoT connectivity, medical technologies, oil and gas/marine, personal electronics and wearable technology, rail, sensor applications, space, and other industries. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity plc in March 2011.

TE Connectivity plc was founded in 1941 and is based in Ballybrit, Ireland.

Industry
Electronic Components
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
September 25
Website
te.com

Price History

TEL+53.1% · +8.9% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$58.67B

P/E (annual)

32.8

P/S (annual)

3.4

P/B

4.4

P/OCF (annual)

14.2

Shareholder Yield

4.6%

Employees

90,000

Industry

Electronic Components

Exchange

NYSE

Signal Flags

4 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 3-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.23
Return on equity
13.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.96
Current ratio
1.88×
Net cash
-$4.39B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.9%

Growth

2/2 pass
Revenue growth
8.9%
Piotroski F-Score
5 / 9
Share dilution
-3.2%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

6.9%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -3.2% — per-share value needs a total required return of 3.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 3.9%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

2.7%

r = 10% (base)

6.9%

r = 12%

10.6%

Net debt / market cap: 7.3%

Note: current FCF margin is 1.8σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $3.2B3Y mean FCF: $2.8B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

40.2xExpensive
12.8xmed 18.5x40.2x

P / S

Price / revenue per share

4.3xExpensive
1.1xmed 2.6x4.3x

P / B

Price / book value per share

5.9xExpensive
1.6xmed 3.6x5.9x

P / GP

Price / gross profit per share

12.2xExpensive
4.4xmed 7.9x12.2x

P / FCF

Price / free cash flow per share

23.1xFair
11.2xmed 21.0x27.0x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.23

Primary signal (Novy-Marx).

8th of 9 SIC 50 peers

Return on equity

13.9%

Gross margin

35.2%

3rd of 9 SIC 50 peers

Revenue growth (YoY)

8.9%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

2.0%

Revenue CAGR (5Y)

7.2%

Earnings CAGR (3Y)

-8.8%

FCF CAGR (3Y)

23.5%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.96

6th of 9 SIC 50 peers (best = lowest)

Current ratio

1.88×

7th of 9 SIC 50 peers

Quick ratio

1.07×

Net cash

-$4.39B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$3.20B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.74

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.9%

Stock-based comp intensity.

Dividend safety

Composite score

4.0 / 5

Strong
Payout ratio
43.6%4/5 Strong
FCF coverage
3.99×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.96 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Decline
Op. Leverage
Capital Return
Value
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