TE Connectivity (TEL) AI Stock Analysis

• Market Cap: $68.95B
• Dividend Yield: 1.19%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 38.0
• Beta (1Y): 1.32
• Revenue Growth: 8.94%
• EPS Growth: -39.90%
• Country: US
• Employees: 85,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.44
• Shares Outstanding: 294,189,240
• 10 Day Avg. Volume: 1,824,983
• 30 Day Avg. Volume: 2,089,830
• PEG Ratio: -0.87
• Price to Book (P/B): 5.12
• Price to Sales (P/S): 3.77
• P/FCF Ratio: 20.13
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: 11.81
• Enterprise Value/Ebitda: 16.93
• 1Y Price Target: $262.45
• Price Target Upside: 11.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 10.72
• Revenue Forecast (FY): $19.18B

• Rating: 80 Outperform
• Price Target: $270.00 ▲(15.21% Upside)

TE Connectivity's overall stock score of 80 reflects its strong financial performance and positive earnings call, which highlight record-breaking sales and growth. The technical analysis indicates a generally bullish trend, although some caution is warranted due to mixed signals. The valuation suggests the stock may be overvalued, which slightly tempers the overall score. The company's strategic focus on high-growth areas like AI and industrial automation positions it well for future expansion.

Positive Factors

Industrial Segment Growth

The strong growth in the Industrial segment indicates TE Connectivity's ability to capture market demand and innovate, particularly in AI and energy solutions, which are key areas for future expansion.

Cash Flow Management

Efficient cash flow management ensures liquidity and operational flexibility, allowing TE Connectivity to invest in growth opportunities and return capital to shareholders, supporting long-term financial health.

AI Revenue Growth

The significant increase in AI revenue reflects TE Connectivity's strategic positioning in high-growth technology sectors, enhancing its competitive edge and long-term revenue potential.

Negative Factors

Challenges in Automotive Markets

Declining automotive sales in Western markets highlight ongoing production challenges, potentially impacting TE Connectivity's growth in this key sector and requiring strategic adjustments.

Weakness in North American Transportation

Weak performance in North American commercial transportation could limit growth in this segment, necessitating efforts to bolster market presence and adapt to regional challenges.

Mixed Performance in Sensors Business

The mixed performance in the Sensors business, particularly in Western regions, suggests potential vulnerabilities in product demand, requiring strategic focus to enhance market penetration.

TE Connectivity Business Overview & Revenue Model

Company Description

TE Connectivity Ltd. is a global technology company specializing in connectivity and sensor solutions across various sectors, including transportation, industrial, medical, and communication networks. With a strong focus on innovation, TE Connectivity designs and manufactures a wide range of products, such as connectors, sensors, and relays, that facilitate the transfer of data and power in diverse applications. The company operates through multiple segments, including Transportation Solutions, Industrial Solutions, and Communications Solutions, catering to the needs of customers in rapidly evolving markets.

How the Company Makes Money

TE 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 Financial Statement Overview

Summary

TE Connectivity exhibits robust financial performance with strong revenue growth and efficient cash flow management. Despite a decline in net profit margin, the company maintains healthy profitability and a solid balance sheet with moderate leverage.

Income Statement

TE Connectivity has demonstrated strong revenue growth of 36.57% in the latest period, indicating robust demand and market presence. The company maintains healthy profitability with a gross profit margin of 34.56% and an EBIT margin of 19.20%. However, the net profit margin has decreased to 10.78% from the previous year's 20.15%, suggesting increased costs or expenses impacting net income.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.45, indicating moderate leverage. The return on equity is 14.64%, showing effective utilization of equity to generate profits. The equity ratio stands at 50.16%, highlighting a solid equity base relative to total assets.

Cash Flow

TE Connectivity's cash flow performance is strong, with a significant free cash flow growth rate of 56.02%, indicating improved cash generation. The operating cash flow to net income ratio is 0.81, suggesting efficient conversion of income into cash. The free cash flow to net income ratio of 0.77 further supports the company's ability to generate cash relative to its earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.09B	17.09B	15.85B	16.03B	16.28B	14.92B
Gross Profit	5.91B	5.91B	5.32B	4.98B	5.24B	4.73B
EBITDA	4.12B	4.12B	3.69B	3.14B	3.58B	3.20B
Net Income	1.84B	1.84B	3.19B	1.91B	2.43B	2.26B
Balance Sheet
Total Assets	25.08B	25.08B	22.85B	21.71B	20.78B	21.46B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.25B	1.32B	1.66B	1.09B	1.20B
Total Debt	5.69B	5.69B	4.33B	4.33B	4.33B	4.21B
Total Liabilities	12.35B	12.35B	10.37B	10.06B	9.88B	10.71B
Stockholders Equity	12.59B	12.59B	12.36B	11.55B	10.80B	10.63B
Cash Flow
Free Cash Flow	3.20B	3.20B	2.80B	2.40B	1.70B	1.99B
Operating Cash Flow	4.14B	4.14B	3.48B	3.13B	2.47B	2.68B
Investing Cash Flow	-3.57B	-3.57B	-950.00M	-768.00M	-878.00M	-1.04B
Financing Cash Flow	-629.00M	-629.00M	-2.87B	-1.79B	-1.68B	-1.39B

TE Connectivity Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 234.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEL, the sentiment is Positive. The current price of 234.36 is above the 20-day moving average (MA) of 231.44, above the 50-day MA of 229.60, and above the 200-day MA of 184.35, indicating a bullish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 85.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEL.

TE Connectivity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEL	80 Outperform	$68.95B	38.04	14.78%	1.19%	8.94%	-39.90%
APH	78 Outperform	$170.58B	46.45	34.78%	0.47%	47.37%	72.30%
KEYS	77 Outperform	$36.17B	43.09	15.83%	―	7.95%	39.54%
GLW	75 Outperform	$73.71B	54.52	12.07%	1.30%	18.27%	771.78%
FLEX	66 Neutral	$23.08B	27.54	17.45%	―	0.77%	0.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	61 Neutral	$23.51B	37.15	40.43%	0.15%	3.18%	-46.01%

TE Connectivity Corporate Events

TE Connectivity Unveils Strategic Growth Plans at Investor Day

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.

TE Connectivity Reports Record Q4 2025 Sales Growth

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.