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Te Connectivity Ltd (TEL)
NYSE:TEL
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TE Connectivity
(NYSE:TEL)
Select Model
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Rating:80Outperform
Price Target:
$270.00
▲(18.99% Upside)
TE Connectivity's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust revenue growth, efficient cash flow management, and strategic focus on high-growth areas like AI and industrial automation position it well for future expansion. However, the high P/E ratio and modest dividend yield suggest valuation concerns, and technical indicators show limited momentum.
TE Connectivity (TEL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.75B
Dividend Yield1.25%
Average Volume (3M)2.07M
Price to Earnings (P/E)36.8
Beta (1Y)1.33
Revenue Growth8.94%
EPS Growth-39.90%
CountryUS
Employees85,000
SectorN/A
Sector StrengthN/A
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.44
Shares Outstanding294,189,240
10 Day Avg. Volume2,230,569
30 Day Avg. Volume2,067,356
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)5.12
Price to Sales (P/S)3.77
P/FCF Ratio20.13
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue4.08
Enterprise Value/Gross Profit11.81
Enterprise Value/Ebitda16.93
Forecast
1Y Price Target
$265.18Price Target Upside16.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)10.71
Revenue Forecast (FY)$19.16B
TE Connectivity Business Overview & Revenue Model
Company DescriptionTE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, relays, antennas, heat shrink tubing, and application tooling products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; and heat shrink tubing, interventional medical components, relays, and wires and cables for aerospace, defense, oil and gas, industrial equipment, medical, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. TE Connectivity Ltd. sells its products to approximately 140 countries primarily through direct sales to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was incorporated in 2000 and is based in Schaffhausen, Switzerland.
How the Company Makes MoneyTE Connectivity generates revenue primarily through the sale of its connectivity and sensor products. Its revenue model is based on the development, manufacturing, and distribution of high-performance components that are integral to various industries. Key revenue streams include the sale of connectors, sensors, and wire and cable products. The company has established significant partnerships with leading manufacturers and original equipment manufacturers (OEMs) across different sectors, which enhances its market reach and drives sales. Additionally, TE Connectivity benefits from long-term contracts and relationships with customers, providing a stable revenue base. The demand for advanced connectivity solutions, driven by trends such as automation, electrification, and the Internet of Things (IoT), further contributes to the company's earnings.
TE Connectivity Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record-breaking sales and growth, particularly in the Industrial segment and AI revenue. Positive cash flow and capital deployment further supported the company's achievements. However, challenges in the Western automotive markets and North American commercial transportation were noted as concerns.Q4-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
TE Connectivity reported record fourth quarter sales of $4.75 billion, growing 17% on a reported basis and 11% organically year-over-year. Full-year sales were also a record at $17.3 billion, with 9% reported growth and 6% organic growth.
Strong Performance in Industrial Segment
The Industrial segment grew 34% in the quarter and 24% organically. Digital Data Networks (DDN) had an outstanding quarter with 80% year-over-year growth. Energy business sales grew 83%, and the Automation and Connected Living business saw an 11% organic increase.
Significant AI Revenue Surge
AI revenue tripled to over $900 million in fiscal 2025, reflecting increased momentum and demand in hyperscaler platforms.
Robust Cash Flow and Capital Deployment
Free cash flow was over $3 billion with more than 100% conversion. The company returned over $2 billion to shareholders and spent $2.6 billion on bolt-on acquisitions.
Positive Outlook for Fiscal 2026
TE Connectivity expects first quarter fiscal 2026 sales to be $4.5 billion, up 17% year-over-year, and adjusted earnings per share to grow 23% year-over-year.
Negative Updates
Challenges in Western Automotive Markets
Automotive sales in Western regions saw a decline of 4%, reflecting ongoing production challenges. The overall growth was driven by an 11% increase in Asia.
Weakness in North American Commercial Transportation
Ongoing weakness was reported in North American commercial transportation, which offset growth in Europe and Asia within the segment.
Mixed Performance in Sensors Business
The Sensors business faced weakness in Western regions, partially offset by growth in Asia.
Company Guidance
During TE Connectivity's fourth-quarter earnings call for fiscal year 2025, the company reported record-breaking sales, earnings, and free cash flow, indicating strong momentum despite a challenging macroeconomic environment. Fourth-quarter sales reached $4.75 billion, surpassing guidance with a 17% year-over-year increase on a reported basis and 11% organically. Orders also rose to $4.7 billion, marking a 22% year-over-year increase. Adjusted earnings per share (EPS) were $2.44, up 25% from the previous year, with adjusted operating margins expanding by 130 basis points to 20%. For the full fiscal year, sales reached a record $17.3 billion, with the Industrial segment seeing a 24% reported growth. The company generated over $3 billion in free cash flow, with a conversion rate exceeding 100%, and returned $2 billion to shareholders. Looking ahead to fiscal 2026, TE Connectivity projects first-quarter sales of $4.5 billion, reflecting a 17% year-over-year increase, and anticipates adjusted EPS of approximately $2.53, representing 23% growth.TE Connectivity Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
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TE Connectivity Technical Analysis
Neutral
226.91
Price Trends
231.84
Negative
220.22
Positive
187.68
Positive
Market Momentum
-0.30
Positive
40.55
Neutral
9.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEL, the sentiment is Neutral. The current price of 226.91 is below the 20-day moving average (MA) of 229.07, below the 50-day MA of 231.84, and above the 200-day MA of 187.68, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 40.55 is Neutral, neither overbought nor oversold. The STOCH value of 9.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TEL.
TE Connectivity Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
80 Outperform | $66.75B | 36.83 | 14.78% | 1.25% | 8.94% | -39.90% | |
78 Outperform | $158.06B | 43.04 | 34.78% | 0.59% | 47.37% | 72.30% | |
77 Outperform | $35.21B | 40.64 | 15.83% | ― | 7.95% | 39.54% | |
74 Outperform | $73.98B | 54.72 | 12.07% | 1.30% | 18.27% | 771.78% | |
74 Outperform | $24.04B | 27.74 | 17.45% | ― | 0.77% | 0.51% | |
64 Neutral | $22.71B | 35.88 | 40.43% | 0.15% | 3.18% | -46.01% |
* Sector Average
TEL
TE Connectivity
226.91
84.35
59.17%
APH
Amphenol
126.51
56.95
81.87%
GLW
Corning
86.29
40.65
89.07%
FLEX
Flex
65.01
27.08
71.39%
JBL
Jabil
216.30
72.80
50.73%
KEYS
Keysight Technologies
198.53
38.32
23.92%
TE Connectivity Corporate Events
Business Operations and StrategyFinancial Disclosures
TE Connectivity Unveils Strategic Growth Plans at Investor Day
Positive
Nov 20, 2025
On November 20, 2025, TE Connectivity held its investor day in Philadelphia, where it presented its strategic plans for future growth. The company aims to achieve 6-8% growth through a combination of organic and inorganic opportunities, focusing on operational excellence and market recovery. TE Connectivity is also emphasizing its strong financial foundation, with a projected sales growth to $17 billion and an adjusted operating margin of over 21%. The company is positioned to deliver significant shareholder value through a disciplined capital strategy, focusing on high-return opportunities and maintaining a strong presence in the global automotive market.
Business Operations and StrategyFinancial Disclosures
TE Connectivity Reports Record Q4 2025 Sales Growth
Positive
Oct 29, 2025
TE Connectivity reported a 17% increase in net sales for the fiscal fourth quarter of 2025, achieving a record $4.75 billion, driven by growth in its Industrial and Transportation segments. The company also set full-year records in sales, operating margin, and cash generation, with a GAAP EPS of $6.16 and an adjusted EPS of $8.76. Looking ahead to fiscal 2026, TE Connectivity expects continued growth, with first-quarter sales projected to rise by 17% and adjusted EPS by 23%, as the company excludes amortization expenses from its non-GAAP measures to enhance comparability and investor insight.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.