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TE Connectivity (TEL) Stock Analysis

This is a peer-relative look at TE Connectivity (TEL): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Technology Hardware & Equipment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for TE Connectivity (TEL)
Profile ItemTEL
NameTE Connectivity plc
Country/RegionIreland
GICS SectorInformation Technology
GICS Industry GroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
GICS Sub-IndustryElectronic Manufacturing Services
Market Capitalization59.52 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 14, 2007
Security TypeCommon Stock

Price Performance

Cumulative Growth

TEL
GSPC
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TE Connectivity (TEL) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for TE Connectivity (TEL) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for TE Connectivity (TEL) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

TE Connectivity (TEL) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: TELIndustry group median
Total Return (1Y)-8.84%19.81%
Total Return (3Y, Annualized)22.58%26.50%
Total Return (5Y, Annualized)7.96%9.52%

Risk Profile

Drawdown History

TEL
GSPC
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TE Connectivity (TEL) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for TE Connectivity (TEL) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

TE Connectivity (TEL) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: TELIndustry group median
Volatility (1Y, Annualized)36.95%55.75%
Beta (5Y)1.141.39
Max Drawdown (5Y)-34.26%-58.83%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. TEL is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

TE Connectivity (TEL) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: TELIndustry group median
Sharpe Ratio (1Y)-0.360.28
Sortino Ratio (1Y)-0.470.40

Profitability

ROE (TTM)

TE Connectivity (TEL) posts ROE of 24.61%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

TEL

Technology Hardware & Equipment industry group

24.61%

Group distribution
Max
42.47%
TEL
24.61%
Q3
19.13%
Median
11.00%
Q1
1.63%
Min
-20.62%
Largest peers
AAPL
142.26%
SNDK
141.17%
APH
40.08%
ANET
33.52%
CSCO
27.32%
TEL
24.61%
DELL
--
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Where TE Connectivity (TEL) stands on ROE within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

TE Connectivity (TEL) keeps 16.36% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

TEL

Technology Hardware & Equipment industry group

16.36%

Group distribution
Max
27.60%
TEL
16.36%
Q3
11.66%
Median
4.08%
Q1
0.00%
Min
-11.02%
Largest peers
SNDK
67.04%
ANET
39.97%
AAPL
27.60%
CSCO
20.95%
APH
17.95%
TEL
16.36%
DELL
7.53%
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Where TE Connectivity (TEL) stands on net margin within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

TE Connectivity (TEL) turns 21.07% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

TEL

Technology Hardware & Equipment industry group

21.07%

Group distribution
Max
36.27%
TEL
21.07%
Q3
18.36%
Median
8.84%
Q1
1.46%
Min
-21.39%
Largest peers
SNDK
79.59%
ANET
44.90%
AAPL
31.13%
APH
29.68%
CSCO
27.72%
TEL
21.07%
DELL
12.02%
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Where TE Connectivity (TEL) stands on operating margin within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

TE Connectivity (TEL) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: TELIndustry group median
ROE (TTM)24.61%11.00%
ROA (TTM)10.00%4.78%
Net Margin (TTM)16.36%4.08%
Operating Margin (TTM)21.07%8.84%
Gross Margin (TTM)36.24%39.87%

Growth

Revenue Growth

TE Connectivity (TEL) grew revenue 8.94%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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TE Connectivity (TEL): Revenue Growth across different time periods, set against Technology Hardware & Equipment industry-group medians.

EPS Growth

TE Connectivity (TEL) grew earnings per share -40.37%, in the lower peer quartile. Per-share profits are advancing more slowly than at most peers, so margins, costs, or share count deserve a closer look.

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TE Connectivity (TEL): EPS Growth across different time periods, set against Technology Hardware & Equipment industry-group medians.

Growth Metrics

TE Connectivity (TEL) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: TELIndustry group median
Revenue Growth (YoY)8.94%10.87%
Revenue Growth (3Y CAGR)1.97%2.79%
EPS Growth (YoY)-40.37%14.29%
EPS Growth (3Y CAGR)-6.23%3.49%

Financial Strength

Current Ratio (MRQ)

TE Connectivity (TEL) has current ratio of 1.73, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

TEL

Technology Hardware & Equipment industry group

1.73

Group distribution
Max
5.34
Q3
3.02
Median
1.95
TEL
1.73
Q1
1.32
Min
0.17
Largest peers
ANET
3.29
SNDK
2.58
APH
1.94
TEL
1.73
AAPL
1.02
DELL
0.96
CSCO
0.93
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Where TE Connectivity (TEL) stands on current ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

TE Connectivity (TEL) has debt-to-equity ratio of 0.41, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

TEL

Technology Hardware & Equipment industry group

0.41

Group distribution
Max
1.76
Q3
0.78
TEL
0.41
Median
0.24
Q1
0.04
Min
0.01
Largest peers
APH
1.03
AAPL
0.84
CSCO
0.62
TEL
0.41
SNDK
0.01
ANET
--
DELL
--
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Where TE Connectivity (TEL) stands on debt-to-equity ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

TE Connectivity (TEL) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: TELIndustry group median
Current Ratio (MRQ)1.731.95
Debt / Equity (MRQ)0.410.24
Net Debt / EBITDA0.760.16

Dividends

Dividend Yield (TTM)

TE Connectivity (TEL) has dividend yield of 1.44%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

TEL

Technology Hardware & Equipment industry group

1.44%

Group distribution
TEL
1.44%
Max
0.73%
Q3
0.31%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CSCO
1.73%
TEL
1.44%
DELL
0.73%
APH
0.70%
AAPL
0.31%
ANET
0.00%
SNDK
0.00%
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Where TE Connectivity (TEL) stands on dividend yield within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

TE Connectivity (TEL) has payout ratio of 28.50%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

TEL

Technology Hardware & Equipment industry group

28.50%

Group distribution
Max
32.27%
TEL
28.50%
Q3
14.48%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CSCO
49.85%
TEL
28.50%
APH
21.74%
DELL
13.43%
AAPL
11.80%
ANET
0.00%
SNDK
0.00%
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Where TE Connectivity (TEL) stands on payout ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

TE Connectivity (TEL) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: TELIndustry group median
Dividend Yield (TTM)1.44%0.00%
Dividend Payout Ratio (TTM)28.50%0.00%

Valuation

P/E Ratio (TTM)

TE Connectivity (TEL) trades at P/E ratio of 18.70, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

TEL

Technology Hardware & Equipment industry group

18.70

Group distribution
Max
69.48
Q3
41.02
Median
26.39
Q1
19.36
TEL
18.70
Min
6.07
Largest peers
ANET
45.79
AAPL
38.13
APH
32.43
CSCO
28.18
DELL
19.10
TEL
18.70
SNDK
6.67
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Where TE Connectivity (TEL) stands on P/E ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

TE Connectivity (TEL) trades at 2.99 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

TEL

Technology Hardware & Equipment industry group

2.99

Group distribution
Max
11.30
Q3
5.82
TEL
2.99
Median
2.56
Q1
1.05
Min
0.00
Largest peers
ANET
18.15
AAPL
10.39
CSCO
5.84
APH
5.57
SNDK
4.10
TEL
2.99
DELL
1.38
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Where TE Connectivity (TEL) stands on P/S ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

TE Connectivity (TEL) trades at 4.38 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

TEL

Technology Hardware & Equipment industry group

4.38

Group distribution
Max
10.75
Q3
5.52
TEL
4.38
Median
3.17
Q1
1.79
Min
0.33
Largest peers
AAPL
44.39
ANET
13.12
APH
10.75
CSCO
7.36
SNDK
6.63
TEL
4.38
DELL
-147.32
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Where TE Connectivity (TEL) stands on P/B ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

TE Connectivity (TEL) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: TELIndustry group median
P/E Ratio (TTM)18.7026.39
P/S Ratio (TTM)2.992.56
P/B Ratio (MRQ)4.383.17
Free Cash Flow Yield (TTM)4.09%2.83%