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TEL

S&P 500
Strong · 73/100

TE Connectivity

Information Technology
Electronic Manufacturing Services

$212.69

2.3%

Updated Today 6:01 PM ET

Price — Past Year

▲ Up 32.9% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$63.53B

P/E

21.63x

Forward P/E (est.)

15.45x

ROE

22.7%

Revenue Growth

16.7%

EPS Growth

115.0%

Profit Margin

15.5%

FCF Yield

3.9%

Debt / Equity

0.45x

ROIC

15.0%

Interest Coverage

40.14x

Current Ratio

1.89x

Dividend Yield

1.4%

Implied Growth (rev. DCF)

3.8%

Rating Score

73/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TEL's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TEL trades near $212.69, below its 50-day average ($214.80) and 200-day average ($221.57). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 51 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. TEL's is $8.58 (~4.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month TEL found buyers near $197.96 (support) and sellers near $223.76 (resistance); its 52-week range is $162.17–$252.56. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

TE Connectivity (TEL) is a large-cap company in the Electronic Manufacturing Services industry, part of the Information Technology sector of the S&P 500, with a market value around $63.53B.

In its latest reported year it generated about $17.26B in revenue and $1.84B in net profit.

Our model rates TEL Strong (73/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

3.7%

Revenue moved from $14.92B in 2021 to $17.26B in 2025, a 3.7% compound annual growth rate. The most recent year grew a strong 16.7% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research

Gross Margin

35.2%

Operating Margin

18.6%

Net Margin

10.7%

ROE

22.7%

TE Connectivity keeps about 15.5% of each sales dollar as net profit, with a 35.2% gross margin and 18.6% operating margin. Return on equity is 22.7% and return on invested capital about 15.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research

Total Debt

$4.00B

Net Debt

$2.89B

Net Debt / EBITDA

0.9x

Debt / Equity

0.45x

Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 40.1x, with a current ratio of 1.9x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $4.00B of total debt against $1.11B of cash.

Cash Flow Analysis
Research

Operating CF

$4.14B

Free Cash Flow

$3.20B

FCF Margin

18.6%

In the latest year TE Connectivity produced about $4.14B of operating cash flow and $3.20B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.9% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

21.63x

P/S

3.63x

P/B

5.09x

EV / EBITDA

16.36x

TEL trades at 21.6x trailing earnings (about 15.4x on estimated forward earnings), 3.6x sales, and 5.1x book value. Reverse-engineering today's price implies the market expects roughly 3.8% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
21.6xFair
Forward P/E
15.4xCheap
P/S ratio
3.6xExpensive
Revenue growth
16.7%Strong
EPS growth
115.0%Strong
Gross margin
35.2%Weak
Net margin
15.5%Strong
ROE
22.7%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How TEL stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (72 S&P 500 companies), TEL ranks #15 of 72 by our overall rating. It trades at a discount versus the sector on earnings (21.6x P/E vs. 35.6x median) with a lower return on equity (22.7% vs. 25.6%) and slower revenue growth (16.7% vs. 17.4%).

P/E vs sector

21.6x

median 35.6x

ROE vs sector

22.7%

median 25.6%

Growth vs sector

16.7%

median 17.4%

Sector rank

#15

of 72 by rating

CompanyP/ERev Gr.Rating
TELThis stock21.6x16.7%Strong· 73
JBL48.5x19.0%Neutral· 50
HPE40.3x22.6%Neutral· 46
KEYS60.7x19.2%Favorable· 58
MSI31.2x8.3%Neutral· 48
LITE151x69.0%Neutral· 43
CIEN139.8x30.6%Neutral· 52
TER80.3x30.3%Favorable· 70
Information Technology median35.6x17.4%61/100

Valuation vs. quality map

sector medianJBLHPEKEYSMSILITECIENTERTELP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$185.41$313.77

vs. $212.69 today · expected CAGR -3%8%

Metric20262027202820292030
Revenue$20.20B$23.63B$27.65B$32.35B$37.85B
Net income$2.22B$2.60B$3.04B$3.56B$4.16B
EPS$7.61$8.90$10.42$12.19$14.26
Share price (low)$98.94$115.76$135.44$158.47$185.41
Share price (high)$167.44$195.91$229.21$268.18$313.77
CAGR (low–high)-53% / -21%-26% / -4%-14% / 3%-7% / 6%-3% / 8%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for TEL:

  • Revenue is growing 16.7% a year, a sign of real demand.
  • High net margins (15.5%) point to pricing power or efficiency.
  • Strong return on equity (22.7%) shows capital is put to work well.
  • A conservative balance sheet (debt/equity 0.5x) lowers risk.
  • Our model's overall read is Strong (73/100).
Bear Case

The case against TEL:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: TE Connectivity is a large-cap information technology business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 21.6x earnings, which our model scores Strong (73/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.