TE Connectivity (TEL)

Information Technology · $62.9B market cap · SEC CIK 0001385157

Next reports on Jan 19, 2027, with analysts expecting $3.34 in earnings per share.

52-week range $190.27 to $252.56. 14% below its 52-week high and 14% above its low.

The case for TEL

• Generated $3.4B of free cash flow in FY2026, 17% of revenue.
• Revenue growing 15.2% year over year.
• Earnings per share up 79.2%.
• Reasonably priced for its growth: 19.3× earnings, where 10% a year of growth plus a 1.8% dividend would justify about 26×.
• Return on equity of 25%.
• Pays a modest 1.8% dividend.

The case against

• Trailed the S&P 500 by 22 points over the past year.
• Weakest against its peers: net margin of 16% is thinner than 57% of Information Technology companies.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from TE Connectivity's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What TE Connectivity says it does

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. On September 30, 2024, TE Connectivity Ltd., our former parent entity, merged with and into TE Connectivity plc, a public limited company incorporated under Irish law and the surviving entity,…

Risk factors TEL lists in its 10-K

• Conditions in global or regional economies, capital and money markets, and banking systems, and cyclical industry demand may adversely affect our results of operations, financial position, and cash flows
• Foreign currency exchange rates may adversely affect our results
• We could be adversely affected by a decline in the market value of our pension plans’ investment portfolios or a reduction in returns on plan assets
• Disruption in credit markets and volatility in equity markets may affect our ability to access sufficient funding
• Global political, economic, and military instability could negatively affect sales or profitability
• Global legislative and regulatory actions and proposals could cause a material change in our worldwide effective corporate tax rate and our global cash taxes
• U.S. federal tax laws could result in adverse consequences to U.S. persons treated as owning 10% or more of our shares
• We are subject to, and may continue to be subject to, incremental costs, risks, and regulations associated with efforts to combat the negative effects of climate change
• Continued scrutiny and expectations regarding environmental, social, and governance (“ESG”) and sustainability matters could result in additional costs or risks or otherwise adversely impact our business
• We are dependent on the automotive and other industries and significant periodic downturns have had material adverse effects on our results of operations, financial position, and cash flows
• We encounter competition in substantially all areas of the electronic components industry, which has and could in the future negatively impact our prices, margins, and market share
• We are dependent on market acceptance of our new product introductions and product innovations for future revenue and failure of such introductions or innovations in a timely manner could cause our operating results to suffer
• The pace of technological change continues to accelerate and our ability to react effectively to such change may present significant competitive risks
• Risks and uncertainties related to the development and use of AI could harm our business, damage our reputation, or give rise to legal or regulatory action
• Pressure to lower our prices has and may in the future result in price erosion
• We may be negatively affected as our customers and vendors continue to consolidate
• The life cycles of certain of our products can be very short and may not result in material revenue and may cause us to write off excess or obsolete inventory or equipment
• We may incur material losses and costs as a result of product liability, warranty, and product recall claims that may be brought against us
• Poor quality of components and products manufactured by third parties could harm our business
• Our future success is significantly dependent on our ability to attract and retain management and executive management employees
• Covenants in our debt instruments may adversely affect us
• The market price of our shares may fluctuate widely
• Future acquisitions may not be successful
• Future acquisitions could require us to issue additional debt or equity that may not be available on acceptable terms and could be dilutive
• Divestitures of some of our businesses or product lines may have a material adverse effect on our results of operations, financial position, and cash flows
• Our ability to compete effectively depends, in part, on our ability to maintain the proprietary nature of our products and technology
• If any of our operations are found not to comply with applicable antitrust or competition laws or applicable trade regulations, our business may suffer
• We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act, the United Kingdom’s Bribery Act, and similar worldwide anti-bribery laws
• Our operations expose us to the risk of material environmental liabilities, litigation, government enforcement actions, and reputational risk
• Our products are subject to various requirements related to chemical usage, hazardous material content, recycling, and other circular economy initiatives
• The laws of Ireland differ from the laws in effect in the U.S. and may afford less protection to holders of our securities
• As an Irish public limited company, certain decisions related to our capital structure will require the approval of shareholders, which may limit our flexibility to manage our capital structure
• Provisions of our articles of association could delay or prevent a third-party’s effort to acquire us
• Transfers of our ordinary shares may be subject to Irish stamp duty
• Dividends you receive may be subject to Irish dividend withholding tax
• Dividends received by investors could be subject to Irish income tax
• Our ordinary shares received by means of a gift or inheritance could be subject to Irish capital acquisitions tax

Filings

Other Information Technology companies