AI Spotlight on TEL
Company Description
TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, 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.
Market Data
Last Price | 149.81 |
Change Percentage | 1.42% |
Open | 150 |
Previous Close | 147.71 |
Market Cap ( Millions) | 44696 |
Volume | 1618635 |
Year High | 159.98 |
Year Low | 137.61 |
M A 50 | 148.0 |
M A 200 | 148.42 |
Financial Ratios
FCF Yield | 6.49% |
Dividend Yield | 1.70% |
ROE | 15.39% |
Debt / Equity | 33.89% |
Net Debt / EBIDTA | 84.05% |
Price To Book | 3.61 |
Price Earnings Ratio | 23.35 |
Price To FCF | 15.4 |
Price To sales | 2.82 |
EV / EBITDA | 13.57 |
News
- Jan -29 - TE Connectivity announces pricing of €750 million 3.250% senior notes offering
- Jan -23 - Post Q1 Earnings: Is TEL a Risky Bet on Sluggish Transportation Sales?
- Jan -22 - TE Connectivity Earnings Surpass Estimates in Q1, Increase Y/Y
- Jan -22 - TE Connectivity plc (TEL) Q1 2025 Earnings Call Transcript
- Jan -22 - Compared to Estimates, TE Connectivity (TEL) Q1 Earnings: A Look at Key Metrics
- Jan -22 - TE Connectivity (TEL) Q1 Earnings Surpass Estimates
- Jan -22 - TE Connectivity announces first quarter results for fiscal year 2025
- Jan -20 - TE Connectivity to Report Q1 Earnings: Buy, Sell or Hold the Stock?
- Jan -16 - TE Connectivity (TEL) Q1 Earnings on the Horizon: Analysts' Insights on Key Performance Measures
- Jan -07 - TE Connectivity earns top score from Human Rights Campaign Foundation
- Jan -07 - TE Connectivity to hold annual general meeting of shareholders on March 12, 2025
- Jan -03 - TE Connectivity named to Dow Jones Sustainability Index for 13th year
- Jan -02 - TE Connectivity to report first quarter financial results on January 22, 2025
- Dec -16 - TE Connectivity price target raised to $165 from $157 at Truist
- Nov -22 - Heilind Asia Pacific Awarded 2024 “Best Strategic Account Development” by TE Connectivity
- Nov -13 - Investing in TE Connectivity (TEL)? Don't Miss Assessing Its International Revenue Trends
- Oct -30 - TE Connectivity Ltd. (TEL) Q4 2024 Earnings Call Transcript
- Oct -30 - Can TEL's Solid Q4 Earnings and Fiscal Q1 View Push the Stock Higher?
- Oct -30 - TE Connectivity (TEL) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
- Oct -30 - TE Connectivity (TEL) Q4 Earnings Match Estimates
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Transportation Solutions
Expected Growth : 3.5 %
What the company do ?
TE Connectivity Ltd.'s Transportation Solutions provide advanced connectivity and sensor technologies for the automotive, aerospace, and industrial markets, enabling safer, more efficient, and connected transportation systems.
Why we expect these perspectives ?
TE Connectivity's Transportation Solutions segment growth is driven by increasing demand for electric vehicles, autonomous driving, and connected cars. The rising need for advanced safety features, infotainment systems, and lightweight materials also contributes to growth. Additionally, the trend towards vehicle electrification and the adoption of advanced driver-assistance systems (ADAS) are key factors supporting the 3.5% growth rate.
Segment n°2 -> Industrial Solutions
Expected Growth : 2.8 %
What the company do ?
Industrial Solutions from TE Connectivity Ltd. provides industrial automation and control solutions, including connectors, sensors, and cables, for industrial manufacturing and process industries.
Why we expect these perspectives ?
TE Connectivity's Industrial Solutions segment growth of 2.8% is driven by increasing demand for industrial automation, electrification of industrial processes, and growth in renewable energy. Additionally, the segment benefits from its diversified customer base, including industrial equipment manufacturers, and its exposure to emerging markets.
Segment n°3 -> Communications Solutions
Expected Growth : 3.2 %
What the company do ?
TE Connectivity's Communications Solutions provide high-speed connectivity and networking products for data centers, telecom networks, and enterprise infrastructure.
Why we expect these perspectives ?
TE Connectivity's Communications Solutions segment growth of 3.2% is driven by increasing demand for high-speed data transmission, proliferation of 5G networks, and growing adoption of IoT devices. Additionally, rising need for reliable and efficient communication infrastructure, and growing investments in data centers and cloud computing are contributing to the segment's growth.
Te Connectivity Ltd. Products
Product Range | What is it ? |
---|---|
Terminal and Connector | TE Connectivity's terminal and connector products are designed to connect and terminate wires and cables in a wide range of applications, including automotive, industrial, and consumer electronics. |
Relays | TE Connectivity's relays are designed to switch electrical circuits on and off, and are used in a variety of applications, including automotive, industrial, and aerospace. |
Fuses | TE Connectivity's fuses are designed to protect electrical circuits from overcurrent conditions, and are used in a variety of applications, including automotive, industrial, and consumer electronics. |
Circuit Protection | TE Connectivity's circuit protection products are designed to protect electrical circuits from overvoltage, overcurrent, and other fault conditions, and are used in a variety of applications, including automotive, industrial, and consumer electronics. |
Antennas | TE Connectivity's antennas are designed to transmit and receive radio frequency signals, and are used in a variety of applications, including wireless communication systems, automotive systems, and industrial equipment. |
Sensors | TE Connectivity's sensors are designed to detect and measure physical parameters such as temperature, pressure, and position, and are used in a variety of applications, including automotive, industrial, and consumer electronics. |
Connectivity and Cable Assemblies | TE Connectivity's connectivity and cable assemblies are designed to connect and transmit data, power, and signals in a variety of applications, including data centers, automotive systems, and industrial equipment. |
Radar and Microwave Components | TE Connectivity's radar and microwave components are designed to transmit and receive high-frequency signals, and are used in a variety of applications, including radar systems, satellite communications, and microwave ovens. |
Aerospace, Defense and Marine | TE Connectivity's aerospace, defense, and marine products are designed to meet the unique requirements of these industries, including high-reliability, high-temperature, and high-vibration applications. |
Industrial and Commercial Transportation | TE Connectivity's industrial and commercial transportation products are designed to meet the unique requirements of these industries, including high-reliability, high-temperature, and high-vibration applications. |
Consumer and Commercial Devices | TE Connectivity's consumer and commercial devices products are designed to meet the unique requirements of these industries, including high-reliability, high-temperature, and high-vibration applications. |
TE Connectivity Ltd.'s Porter Forces
Threat Of Substitutes
TE Connectivity Ltd. operates in a niche market with high barriers to entry, reducing the threat of substitutes. However, the company's products are not entirely unique, and customers may find alternative solutions.
Bargaining Power Of Customers
TE Connectivity Ltd. has a diverse customer base, reducing the bargaining power of individual customers. The company's products are also critical components in customers' systems, making it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
TE Connectivity Ltd. relies on a few key suppliers for critical components. While the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.
Threat Of New Entrants
The barriers to entry in TE Connectivity Ltd.'s markets are high, including significant capital expenditures and technological expertise. New entrants would face significant challenges in competing with the company's established products and customer relationships.
Intensity Of Rivalry
TE Connectivity Ltd. operates in a highly competitive industry with several established players. The company must continually innovate and invest in research and development to maintain its market position.
Capital Structure
Value | |
---|---|
Debt Weight | 26.72% |
Debt Cost | 3.95% |
Equity Weight | 73.28% |
Equity Cost | 10.70% |
WACC | 8.90% |
Leverage | 36.46% |
TE Connectivity Ltd. : Quality Control
TE Connectivity Ltd. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
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