# TE Connectivity (TEL.US)

Canonical: https://gigainvestors.com/s/TEL

Analysis as of: 2026-10-16T07:32:18.897Z. Financial observations: FY2002–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $212.99 per share; close as of 2026-10-15.

Estimated value: low $119.27 per share, central $145.25 per share, high $168.85 per share. Buy at or below the central value $145.25 per share. Valuation as of 2026-10-16T07:32:18.897Z; scenarios are not confidence intervals.

Expected annual return: 7.7% at the stated quote. About 7.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.16×

- FY2018: 0.18×

- FY2019: 0.16×

- FY2020: 0.15×

- FY2021: 0.18×

- FY2022: 0.18×

- FY2023: 0.17×

- FY2024: 0.18×

- FY2025: 0.19×

### moat: pass

- ROIC, median of available years: 27.2%

- ROIC, second-lowest year: 19.4%

- Typical minus recent gross margin: -2.5 pp

- Typical gross margin (annual median): 31.9%

- Recent gross margin (lower of latest and 3-year median): 34.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.9%

- ROIC including acquisitions, ten-year median: 14.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 30.0%

- FY2017: 26.2%

- FY2018: 29.5%

- FY2019: 27.9%

- FY2020: 14.1%

- FY2021: 28.4%

- FY2022: 27.1%

- FY2023: 24.5%

- FY2024: 27.4%

- FY2025: 19.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $12B

- Net income, five-year total: $12B

- Return on incremental invested capital: 34.5%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.4 pp

- Working capital / revenue, final three-year average: 24.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.01×

- FY2023: 1.03×

- FY2024: 1.05×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 29.5% vs 24.5%

- Per-share earnings: 4.77 to 6.16 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.1%

- Ordinary dilution, 5-year annual growth: -2.1%

- Market cap gain: $36B

- Cumulative retained earnings: $3.8B

- Diluted shares, 10-year annual growth: -3.1%

- Diluted shares, 5-year annual growth: -2.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.2%

- Per-share value change: $1.39

- Per-share value, starting three-year median: $4.77

- Per-share value, ending three-year median: $6.16

- Buybacks concentrated in cheaper years (correlation): 0.82

- Average buyback yield: 2.7%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $4.2B

- Cumulative net income, 10 years: $20B

- ROIC, first three-year median: 29.5%

- ROIC, last three-year median: 24.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.37

- FY2017: $4.77

- FY2018: $7.27

- FY2019: $5.68

- FY2020: -$0.73

- FY2021: $6.79

- FY2022: $7.47

- FY2023: $6.03

- FY2024: $10.33

- FY2025: $6.16

### accounting: pass

- Sloan accruals: -9.2%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.25×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.74×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.3%

- FY2017: -3.3%

- FY2018: 0.6%

- FY2019: -2.5%

- FY2020: -11.6%

- FY2021: -1.9%

- FY2022: -0.2%

- FY2023: -5.6%

- FY2024: -1.2%

- FY2025: -9.2%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Katz](https://gigainvestors.com/MAVFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 7.6% a year for ten years · "Expanding data center capex is driving this demand." (finance.yahoo.com, Aug 2026) · sales +7.9%

Story as of 2026-10-16T09:59:40.568Z; price observation 2026-10-15.

Price needs cash profits to grow 7.6% a year for ten years

- 2025-04-24: TE Connectivity (NYSE:TEL) Projects Q3 Sales Growth Despite Q2 Earnings Drop ([finance.yahoo.com](https://finance.yahoo.com/news/te-connectivity-nyse-tel-projects-183345909.html))

- 2025-07-23: TE Connectivity (TEL) Expects Q4 Sales of US$4.55 Billion with 140% EPS Increase ([finance.yahoo.com](https://finance.yahoo.com/news/te-connectivity-tel-expects-q4-174125129.html))

- 2025-10-29: TE Connectivity targets 17% sales growth for Q1 2026 as AI momentum accelerates ([seekingalpha.com](https://seekingalpha.com/news/4510477-te-connectivity-targets-17-percent-sales-growth-for-q1-2026-as-ai-momentum-accelerates?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-03-03: TE Connectivity (TEL) Loses 7.89% on Middle East Supply Disruptions ([finance.yahoo.com](https://finance.yahoo.com/news/te-connectivity-tel-loses-7-062605653.html))

- 2026-07-22: TE Connectivity falls as $1.4B Astrodyne deal overshadows earnings, outlook beat ([seekingalpha.com](https://seekingalpha.com/news/4616653-te-connectivity-falls-as-14b-astrodyne-deal-overshadows-earnings-outlook-beat?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +7.9%; source https://www.sec.gov/Archives/edgar/data/1385157/000110465925109150/tel-20250926x10k.htm; observed 2025-11-10.

- FY2016: $12B 

- FY2017: $13B 

- FY2018: $14B 

- FY2019: $13B 

- FY2020: $12B 

- FY2021: $15B 

- FY2022: $16B 

- FY2023: $16B 

- FY2024: $16B 

- FY2025: $17B 

### Gross margin · FY2025

gross margin 34.6%; source https://www.sec.gov/Archives/edgar/data/1385157/000110465925109150/tel-20250926x10k.htm; observed 2025-11-10.

- FY2016: 32.3% 

- FY2017: 31.4% 

- FY2018: 33.4% 

- FY2019: 32.1% 

- FY2020: 30.1% 

- FY2021: 31.7% 

- FY2022: 31.5% 

- FY2023: 31.1% 

- FY2024: 34.4% 

- FY2025: 34.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic components; annual sales are USD 17.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1385157/000110465925109150/tel-20250926x10k.htm (filed 2025-11-10); FY2025: revenue 17089000000; grossProfit 5906000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TEL.US: TE Connectivity plc, 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 two reportable segments, Transportation Solutions and Industrial Solutions. It provides antennas, application tooling, cable assemblies, connectors, electromagnetic compatibility/electromagnetic interference solutions, energy and power, fiber optics, heat shrink tubing, identification and labeling, medical components, passive components, relays and contactors, sensors, switches, terminals and splices, wires and cables, and wire protection and management solutions. The company also offers training and other services, including 3D printing for production, back shells prototyping, electrical installation training, HarnWare software, machine tooling service and repair, medical device design services, microfluidic devices, and sensor manufacturing services as well as conducts automotive webinars. It serves 5G and wireless equipment, aerospace, appliances, automation and control, automotive, autosport, commercial and industrial vehicles, connected home, data centers and artificial intelligence, defense and military, energy solutions, e-mobility, industrial machinery, intelligent buildings, IoT connectivity, medical technologies, oil and gas/marine, personal electronics and wearable technology, rail, sensor applications, space, and other industries. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity plc in March 2011. TE Connectivity plc was founded in 1941 and is based in Ballybrit, Ireland.

### Why customers stay

Margins ranged from 31.1% to 34.6% during 2023–25; it earns 27.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2023: grossProfit / revenue = 31.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2024: grossProfit / revenue = 34.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1385157/000110465925109150/tel-20250926x10k.htm (filed 2025-11-10); FY2025: grossProfit / revenue = 34.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); 10-year return on capital observations [[2016,0.3001870324189526],[2017,0.2618538059313245],[2018,0.295216291119412],[2019,0.2788510421962379],[2020,0.14145654834761323],[2021,0.28408034771466195],[2022,0.2706410752647004],[2023,0.24475083355861946],[2024,0.27433281004709575],[2025,0.19408127208480566]]; median 0.27248694265589807. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 32% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1385157/000110465925109150/tel-20250926x10k.htm (filed 2025-11-10); Gross margin observations: [[2021,0.3169603967030758],[2022,0.3150912106135987],[2023,0.31052762878882373]]; range within 2 percentage points.

### Where the cash goes

Spends 5.3% of cash earnings on expansion; earns 34.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2016: growth capex 1193093.8131278753; upkeep 626806906.1868721; owner earnings 1938193093.813128. Growth capex / owner earnings = 0.0006155701498144478.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2017: growth capex 91000000; upkeep 611000000; owner earnings 1680000000. Growth capex / owner earnings = 0.05416666666666667.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2018: growth capex 213861994.2530986; upkeep 721138005.7469014; owner earnings 2512861994.2530985. Growth capex / owner earnings = 0.0851069397134422.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2019: growth capex 0; upkeep 749000000; owner earnings 1871000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2021: growth capex 0; upkeep 690000000; owner earnings 2340000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2022: growth capex 0; upkeep 768000000; owner earnings 2445000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2023: growth capex 0; upkeep 732000000; owner earnings 1972000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); FY2024: growth capex 0; upkeep 680000000; owner earnings 3339000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1385157/000110465925109150/tel-20250926x10k.htm (filed 2025-11-10); FY2025: growth capex 98000000; upkeep 838000000; owner earnings 1842000000. Growth capex / owner earnings = 0.053203040173724216.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); Incremental return on capital 0.3450545541505993, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); Dividend observations: [[2016,509000000],[2017,546000000],[2018,588000000],[2019,608000000],[2020,625000000],[2021,647000000],[2022,685000000],[2023,725000000],[2024,760000000],[2025,803000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1385157/000110465925109150/tel-20250926x10k.htm (filed 2025-11-10); FY2025: cash repurchases 1347000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TEL.US SharesStats.PercentInsiders = 0.11900000000000001 percentage points; cache date 2026-10-16.

### What could break it

"Foreign currency exchange rates may adversely affect our results." (SEC filing, Nov 2025)

- Source: https://www.sec.gov/Archives/edgar/data/1385157/000110465925109150/tel-20250926x10k.htm (filed 2025-11-10); Foreign currency exchange rates may adversely affect our results.

### What the price says

The price assumes cash profits grow 7.6% yearly over ten years; actual growth was 6.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-10); Ten-year compound average after fade. Initial solved rate 0.09547182288537914. Price 212.99; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.238442822384428 → FY2025 6.160535117056856. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $62.87 per share

- 2016-11: $67.64 per share

- 2016-12: $69.28 per share

- 2017-01: $74.35 per share

- 2017-02: $74.47 per share

- 2017-03: $74.55 per share

- 2017-04: $77.37 per share

- 2017-05: $78.85 per share

- 2017-06: $78.68 per share

- 2017-07: $80.39 per share

- 2017-08: $79.60 per share

- 2017-09: $83.06 per share

- 2017-10: $90.97 per share

- 2017-11: $94.44 per share

- 2017-12: $95.04 per share

- 2018-01: $102.53 per share

- 2018-02: $103.09 per share

- 2018-03: $99.90 per share

- 2018-04: $91.75 per share

- 2018-05: $93.08 per share

- 2018-06: $90.06 per share

- 2018-07: $93.57 per share

- 2018-08: $91.68 per share

- 2018-09: $87.93 per share

- 2018-10: $75.42 per share

- 2018-11: $76.93 per share

- 2018-12: $75.63 per share

- 2019-01: $80.95 per share

- 2019-02: $82.09 per share

- 2019-03: $80.75 per share

- 2019-04: $95.65 per share

- 2019-05: $84.23 per share

- 2019-06: $95.78 per share

- 2019-07: $92.40 per share

- 2019-08: $91.22 per share

- 2019-09: $93.18 per share

- 2019-10: $89.50 per share

- 2019-11: $92.71 per share

- 2019-12: $95.84 per share

- 2020-01: $92.18 per share

- 2020-02: $82.87 per share

- 2020-03: $62.98 per share

- 2020-04: $73.46 per share

- 2020-05: $81.25 per share

- 2020-06: $81.55 per share

- 2020-07: $89.07 per share

- 2020-08: $96.60 per share

- 2020-09: $97.74 per share

- 2020-10: $96.88 per share

- 2020-11: $113.97 per share

- 2020-12: $121.07 per share

- 2021-01: $120.40 per share

- 2021-02: $130.03 per share

- 2021-03: $129.11 per share

- 2021-04: $134.47 per share

- 2021-05: $135.68 per share

- 2021-06: $135.21 per share

- 2021-07: $147.47 per share

- 2021-08: $150.22 per share

- 2021-09: $137.22 per share

- 2021-10: $146.00 per share

- 2021-11: $153.93 per share

- 2021-12: $161.34 per share

- 2022-01: $143.01 per share

- 2022-02: $142.43 per share

- 2022-03: $130.98 per share

- 2022-04: $124.78 per share

- 2022-05: $129.39 per share

- 2022-06: $113.15 per share

- 2022-07: $133.73 per share

- 2022-08: $126.21 per share

- 2022-09: $110.36 per share

- 2022-10: $122.23 per share

- 2022-11: $126.12 per share

- 2022-12: $114.80 per share

- 2023-01: $127.15 per share

- 2023-02: $127.32 per share

- 2023-03: $131.15 per share

- 2023-04: $122.37 per share

- 2023-05: $122.48 per share

- 2023-06: $140.16 per share

- 2023-07: $143.49 per share

- 2023-08: $132.39 per share

- 2023-09: $123.53 per share

- 2023-10: $117.85 per share

- 2023-11: $131.00 per share

- 2023-12: $140.50 per share

- 2024-01: $142.19 per share

- 2024-02: $143.56 per share

- 2024-03: $145.24 per share

- 2024-04: $141.48 per share

- 2024-05: $149.70 per share

- 2024-06: $150.43 per share

- 2024-07: $154.33 per share

- 2024-08: $153.60 per share

- 2024-09: $150.99 per share

- 2024-10: $147.42 per share

- 2024-11: $151.12 per share

- 2024-12: $142.97 per share

- 2025-01: $147.97 per share

- 2025-02: $154.03 per share

- 2025-03: $141.32 per share

- 2025-04: $146.38 per share

- 2025-05: $160.07 per share

- 2025-06: $168.67 per share

- 2025-07: $205.75 per share

- 2025-08: $206.50 per share

- 2025-09: $219.53 per share

- 2025-10: $247.01 per share

- 2025-11: $226.15 per share

- 2025-12: $227.51 per share

- 2026-01: $222.78 per share

- 2026-02: $230.15 per share

- 2026-03: $209.02 per share

- 2026-04: $211.66 per share

- 2026-05: $213.41 per share

- 2026-06: $201.61 per share

- 2026-07: $205.69 per share

- 2026-08: $205.25 per share

- 2026-09: $211.08 per share

- 2026-10: $215.92 per share

## Annual estimated value (USD per share)

- FY2016: low $40.53 per share, central $45.97 per share, high $53.21 per share

- FY2017: low $54.84 per share, central $62.03 per share, high $71.60 per share

- FY2018: low $57.10 per share, central $64.75 per share, high $74.94 per share

- FY2019: low $67.10 per share, central $82.60 per share, high $96.03 per share

- FY2020: low $57.87 per share, central $65.55 per share, high $75.79 per share

- FY2021: low $74.33 per share, central $88.58 per share, high $102.72 per share

- FY2022: low $92.57 per share, central $115.53 per share, high $134.47 per share

- FY2023: low $88.33 per share, central $109.33 per share, high $126.89 per share

- FY2024: low $94.70 per share, central $116.80 per share, high $135.73 per share

- FY2025: low $103.56 per share, central $126.01 per share, high $146.40 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1385157/000110465925109150/tel-20250926x10k.htm); period 2025-09-26, filed 2025-11-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.