One-glance verdict
Within fair range
$294.31 our estimate vs market $212.64
Wall Street consensus: $251.79 (-14.4% lower than our fair-value estimate)
28% below our estimate
Fundamentals snapshot
TE Connectivity plc
TEL · NYQ · Technology · Electronic Components
Current price
$212.64
52-week range
$190.27 - $252.56
Market cap
$61.56B
Balance sheet
Watch
43.95x Strong cushion
Net debt $4.58B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 11.9% last year.
- Reward Returns 23.3% on equity, ahead of 66% of its peers.
- Risk Net debt grew 40.7% over 3 years.
- Risk Insider ownership is only 0.1% (peer median: 0.8%).
What this company does
TE Connectivity plc
TE Connectivity makes the small but essential electronic parts, like connectors and sensors, that are inside everything from cars and airplanes to factory equipment and medical devices. The company makes most of its money by selling these components to the transportation and industrial sectors. Because its parts are necessary for so many different products, its financial health is often a good indicator of how well these major global industries are doing.
How the company got here
TE Connectivity's story began in 1941 as a company called AMP, making electrical connections for airplanes and ships. [3, 8] After being acquired by the large industrial company Tyco International in 1999, it was spun off as an independent public company in 2007. [3, 5] To better reflect its business of making the essential components that connect and sense things, the company changed its name from Tyco Electronics to TE Connectivity in 2011. [3, 5] Through these changes, it has become a major global manufacturer of electronic components that are critical to many industries.
What it actually does
Think of TE Connectivity as a maker of the vital, often unseen, parts that allow modern technology to function. The company manufactures over 500,000 types of products, primarily connectors and sensors, which are essential for managing power and data flow. [13] These components are the crucial links inside everything from the car you drive and the appliances in your home to the complex machinery in a factory and life-saving medical devices. [7, 9] Essentially, if a product uses electricity or transmits information, it likely contains the types of components TE Connectivity makes. [12]
Transportation Solutions
This is the company's largest business segment, making up more than half of its sales. [7] It primarily supplies advanced connectors, sensors, and other components to the automotive industry for things like infotainment systems, safety features, and the high-voltage systems in electric vehicles. [2, 3] This segment also serves the commercial transportation market, providing rugged parts for trucks, construction equipment, and boats that need to withstand harsh conditions. [13, 18] The key customers are car manufacturers and suppliers who pay for these highly engineered and reliable components. [2]
Industrial Solutions
This segment provides a wide array of products that help connect and distribute power and data across many different industries. [2] Its customers include manufacturers of factory automation equipment, medical devices, and home appliances. [3] This division also makes critical components for the aerospace and defense industry, as well as for the energy sector and data centers that power the internet and artificial intelligence (AI). [2, 7] This part of the business is focused on providing reliable solutions for complex, often mission-critical (extremely important for success), applications.
What management is betting on now
The company is focusing its strategy on major technology trends where its products are essential. A primary bet is on the growth of electric vehicles, which require significantly more and higher-value electrical components than traditional cars. [8, 16] Another major focus is the boom in artificial intelligence, as TE Connectivity makes the high-speed connectors needed for powerful data centers and AI servers. [16, 21] Management is also investing in industrial automation (using robots and control systems in factories) and renewable energy, such as solar and wind power, as these areas require specialized and reliable connectivity solutions. [9, 15, 17]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$829.00M
FY2025 Q1
$673.00M
FY2025 Q2
$423.00M
FY2025 Q3
$957.00M
FY2025 Q4
$1.15B
FY2026 Q1
$607.00M
FY2026 Q2
$677.00M
FY2026 Q3
$881.00M
Revenue
$5.16B
Net income
$748.00M
Diluted EPS
2.55
Operating cash flow
$1.19B
Free cash flow
$881.00M
Fetching…
Sources
Revenue
$4.74B
Net income
$855.00M
Diluted EPS
2.90
Operating cash flow
$947.00M
Free cash flow
$677.00M
Fetching…
Sources
Revenue
$4.67B
Net income
$750.00M
Diluted EPS
2.53
Operating cash flow
$865.00M
Free cash flow
$607.00M
Fetching…
Sources
Revenue
$4.75B
Net income
$663.00M
Diluted EPS
2.23
Operating cash flow
$1.42B
Free cash flow
$1.15B
Fetching…
Sources
Revenue
$4.53B
Net income
$638.00M
Diluted EPS
2.14
Operating cash flow
$1.19B
Free cash flow
$957.00M
Fetching…
Sources
Revenue
$4.14B
Net income
$13.00M
Diluted EPS
0.04
Operating cash flow
$653.00M
Free cash flow
$423.00M
Fetching…
Sources
Revenue
$3.84B
Net income
$528.00M
Diluted EPS
1.75
Operating cash flow
$878.00M
Free cash flow
$673.00M
Fetching…
Sources
Revenue
$4.07B
Net income
$276.00M
Diluted EPS
0.96
Operating cash flow
$1.04B
Free cash flow
$829.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $294.31 vs current price $212.64
Wall Street consensus is the average analyst price target: $251.79 (-14.4% lower than our fair-value estimate).
Our most-likely fair value is $294.31 a share — about 38.4% away from today's price of $212.64, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $4.6B. Interest coverage 43.9x.
Net debt
$4.58B
Interest coverage
43.95x
TE Connectivity plc's profit covers its interest bill about 43.9 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
TEL
BASELINE
TE Connectivity plc
Total debt $5.82B Interest coverage 43.95x This is the baseline the peer rows are being compared against.
Total debt $18.81B Interest coverage 16.24x -63% vs TEL Carries about 2.7x less debt cushion than TEL.
Total debt $5.68B Interest coverage 5.59x -87% vs TEL Carries about 7.9x less debt cushion than TEL.
Total debt $9.38B Interest coverage 6.78x -85% vs TEL Carries about 6.5x less debt cushion than TEL.
Total debt $2.44B Interest coverage 3.45x -92% vs TEL Carries about 12.7x less debt cushion than TEL.
What you should know
The case for and against TEL
3 Rewards
2 Risks
Rewards
-
Revenue grew 11.9% last year.
-
Returns 23.3% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 40.7% over 3 years.
-
Insider ownership is only 0.1% (peer median: 0.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.83x
Forward P/E
16.39x
P/B
4.65x
P/S
3.19x
EV/EBITDA
13.39x
PEG ratio
0.91x
Profitability
How much profit each dollar creates
Gross margin
36.1%
Operating margin
20.8%
Net margin
15.6%
ROE
23.3%
ROA
9.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.43x
Current ratio
1.88x
Quick ratio
1.07x
Total debt
$5.82B
Total cash
$1.24B
Growth
How the business has been compounding
Revenue TTM
$19.32B
Revenue 5Y CAGR
3.7%
EPS TTM
10.21
EPS 5Y CAGR
-6.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$4.42B
Free CF TTM
$3.20B
FCF margin
16.6%
Dividend
Shareholder payout
Yield
1.5%
Payout ratio
28.5%
Last ex-div date
2026-11-20