TE Connectivity Ltd. (TEL) is listed on NYSE and operates in the Hardware, Equipment & Parts industry (Technology sector).
TE 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.
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 15 |
| Hold | 14 |
| Sell | 0 |
| Strong Sell | 0 |
TE Connectivity Ltd., along with its subsidiaries, produces and distributes connectivity and sensor solutions globally, including in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. The company operates through three main segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment offers products such as terminals, connector systems, sensors, relays, antennas, heat shrink tubing, and application tooling for automotive, commercial transportation, and sensor markets. The Industrial Solutions segment provides terminals, connector systems, heat shrink tubing, interventional medical components, relays, and wires and cables for aerospace, defense, oil and gas, industrial equipment, medical, and energy sectors. The Communications Solutions segment delivers electronic components, including terminals, connector systems, relays, heat shrink tubing, and antennas for data, devices, and appliances markets. TE Connectivity Ltd. markets its products in approximately 140 countries, primarily through direct sales to manufacturers and third-party distributors. Originally known as Tyco Electronics Ltd., the company rebranded to TE Connectivity Ltd. in March 2011 and is headquartered in Schaffhausen, Switzerland.
Over the past three fiscal years, the company has demonstrated a mixed performance across various financial metrics. Revenue exhibited an inconsistent growth pattern, increasing at a 3.2% CAGR from $16.03 billion in 2023 to $17.09 billion in 2025. Despite this revenue growth, net margins showed volatility, ultimately compressing by 1.1pp from 11.9% to 10.8%, which suggests challenges in maintaining profitability. However, operating margins consistently improved by 1.9pp, reaching 18.8%, indicating effective cost management and operating leverage. On the cash generation front, the company achieved a robust increase in both operating and free cash flows, with FCF growing at a 15.5% CAGR to $3.20 billion, reflecting a strong cash conversion with a CCR of 2.25. The company's capital efficiency remained stable, with asset turnover holding steady at 0.71, while working capital efficiency improved as the cash conversion cycle decreased to 93 days. Notably, the company reduced its share count by 5.7% through buybacks, enhancing per-share value creation, as evidenced by the consistent increase in revenue and FCF per share. Despite an increase in net debt to $5.30 billion, the company's interest coverage ratio improved significantly to 42.6x, indicating a strong ability to meet its debt obligations.
Recent developments for TE Connectivity (TEL) are primarily focused on its upcoming Q2 earnings report, with several analyses from Zacks Investment Research highlighting the stock as a buy-rated tech stock to consider as earnings approach. The company is gearing up to release its Q2 earnings, with expectations and previews being a focal point for investors. In terms of analyst ratings, TEL has been included in lists of stocks with high return on equity and those with upgraded broker ratings, indicating positive sentiment in the market. On the insider trading front, Shadrak Kroeger sold 9,400 shares at an average price of $223.26, totaling approximately $2.1 million, while retaining 25,976 shares. Institutional activity includes Mirae Asset Global Investments Co. Ltd. purchasing 11,602 shares, reflecting a 6% increase in their holdings, valued at $13.4 million. Conversely, Allspring Global Investments Holdings LLC reduced its holdings by 4% during the fourth quarter. These transactions suggest routine portfolio adjustments rather than significant shifts in company outlook. Overall, the focus remains on TEL's financial performance and market positioning as it prepares to release its earnings.