TE Connectivity logged a -6.9% change during today's afternoon session, and is now trading at a price of $216.95 per share.
TE Connectivity returned gains of 54.8% last year, with its stock price reaching a high of $250.67 and a low of $116.3. Over the same period, the stock outperformed the S&P 500 index by 43.2%. More recently, the company's 50-day average price was $227.83. TE Connectivity plc, together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. Based in Ballybrit, Ireland, the Large-Cap Technology company has 80,000 full time employees. TE Connectivity has offered a 1.2% dividend yield over the last 12 months.
Generally Positive Cash Flows but Slimmer Gross Margins than the Industry Average of 39.87%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $13,448 | $12,172 | $14,923 | $16,281 | $16,034 | $15,845 |
| Gross Margins | 33% | 31% | 33% | 32% | 32% | 34% |
| Net Margins | 14% | -2% | 15% | 15% | 12% | 20% |
| Net Income (M) | $1,844 | -$241 | $2,261 | $2,428 | $1,910 | $3,193 |
| Net Interest Expense (M) | $68 | $48 | $56 | $66 | $80 | $87 |
| Depreciation & Amort. (M) | $510 | $529 | $576 | $593 | $607 | $660 |
| Diluted Shares (M) | 337 | 333 | 330 | 319 | 313 | 301 |
| Earnings Per Share | $5.42 | -$0.73 | $6.79 | $7.47 | $6.03 | $10.33 |
| EPS Growth | n/a | -113.47% | 1030.14% | 10.01% | -19.28% | 71.31% |
| Avg. Price | $82.93 | $86.5 | $136.1 | $129.77 | $140.5 | $217.31 |
| P/E Ratio | 15.19 | -118.49 | 19.87 | 17.26 | 23.18 | 20.9 |
| Free Cash Flow (M) | $1,673 | $1,432 | $1,986 | $1,700 | $2,400 | $2,797 |
| CAPEX (M) | $749 | $560 | $690 | $768 | $732 | $680 |
| EV / EBITDA | 12.44 | 29.69 | 15.78 | 13.28 | 16.02 | 19.68 |
| Total Debt (M) | $3,956 | $4,137 | $4,073 | $4,112 | $4,142 | $4,252 |
| Net Debt / EBITDA | 1.29 | 2.85 | 1.03 | 0.99 | 1.02 | 0.87 |
| Current Ratio | 1.64 | 1.59 | 1.69 | 1.66 | 1.86 | 1.68 |
TE Connectivity benefits from generally positive cash flows, growing revenues and a flat capital expenditure trend, and a strong EPS growth trend. The company's financial statements show a decent current ratio of 1.68 and healthy leverage levels. However, the firm has slimmer gross margins than its peers.
an Increase in Expected Earnings Improves Value but Trading Above Its Fair Price:
TE Connectivity has a trailing twelve month P/E ratio of 37.0, compared to an average of 30.44 for the Technology sector. Based on its EPS guidance of $8.99, the company has a forward P/E ratio of 25.3. The 7.5% compound average growth rate of TE Connectivity's historical and projected earnings per share yields a PEG ratio of 4.94. This suggests that these shares are overvalued. Furthermore, TE Connectivity is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.08 is higher than the sector average of 4.19. The company's shares are currently trading 121.3% below their Graham number. Ultimately, TE Connectivity's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
TE Connectivity Has an Analyst Consensus of Some Upside Potential:
The 16 analysts following TE Connectivity have set target prices ranging from $200.0 to $315.0 per share, for an average of $269.94 with a buy rating. The company is trading -19.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
TE Connectivity has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 91.8% of the company's shares, and the insider ownership rate stands at 0.11%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 13% stake in the company is worth $8,299,018,823.
