📊 TEL Key Takeaways
Is TE Connectivity plc (TEL) a Good Investment?
TE Connectivity demonstrates solid fundamental health with robust profitability metrics (20.6% operating margin, 16.1% net margin) and strong revenue growth of 8.9% YoY. The company maintains excellent financial stability with low leverage (0.37x debt/equity), strong interest coverage (26.0x), and positive free cash flow generation ($607M), supporting both operational sustainability and capital allocation flexibility.
TE Connectivity shows strong core fundamentals with high operating efficiency, solid free cash flow generation, and a conservative balance sheet. Revenue growth of 8.9% with a 20.6% operating margin indicates good demand quality and disciplined execution, while low leverage and strong interest coverage support financial resilience. The main caution is that net income was flat and diluted EPS fell sharply, which suggests earnings quality and per-share performance need closer monitoring.
Why Buy TE Connectivity plc Stock? TEL Key Strengths
- Strong operating and net margins (20.6% and 16.1% respectively) indicate efficient cost management and pricing power
- Solid revenue growth of 8.9% YoY demonstrates market demand and competitive positioning
- Excellent financial health with low debt/equity ratio (0.37x) and exceptional interest coverage (26.0x) providing financial flexibility
- Positive free cash flow of $607M with 13.0% FCF margin supports capital allocation, debt reduction, and shareholder returns
- Healthy liquidity position with 1.65x current ratio and 1.07x quick ratio indicating ability to meet short-term obligations
- Strong profitability profile with 37.2% gross margin, 20.6% operating margin, and 16.1% net margin
- Healthy financial position with 1.65x current ratio, 0.37x debt-to-equity, and 26.0x interest coverage
- Robust cash generation with $607.00M free cash flow and a 13.0% free cash flow margin
TEL Stock Risks: TE Connectivity plc Investment Risks
- Flat net income growth (0% YoY) despite 8.9% revenue growth suggests margin compression or expense acceleration requiring monitoring
- Significant diluted EPS decline of 40.4% YoY indicates substantial share dilution or reduced per-share profitability
- Moderate ROE (5.8%) and ROA (2.9%) suggest capital is not being deployed with optimal efficiency despite strong margins
- Electronic components sector exposure to cyclical demand and supply chain volatility typical of wholesale distribution
- Capital intensity with $258M capex annually may limit financial flexibility in economic downturns
- Net income was flat despite solid revenue growth, which may indicate margin pressure below the operating line or weaker earnings conversion
- Diluted EPS declined 40.4% year over year, raising concern about per-share earnings quality or unusual prior-period comparisons
- ROE of 5.8% and ROA of 2.9% are modest relative to the company’s margin profile, suggesting capital efficiency is not as strong as headline profitability implies
Key Metrics to Watch
- Operating margin trend - watch for continued compression relative to revenue growth
- Free cash flow sustainability and conversion rates as primary cash generation indicator
- Debt/equity ratio and interest coverage maintenance to ensure financial flexibility preservation
- Revenue growth acceleration and net income margin expansion to improve per-share profitability metrics
- Return on equity improvement through better capital deployment efficiency
- Diluted EPS trend versus net income growth
- Free cash flow margin and operating cash flow conversion
TE Connectivity plc (TEL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
TE Connectivity plc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
TEL Profit Margin, ROE & Profitability Analysis
TEL vs Technology Sector: How TE Connectivity plc Compares
How TE Connectivity plc compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is TE Connectivity plc Stock Overvalued? TEL Valuation Analysis 2026
Based on fundamental analysis, TE Connectivity plc has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
TE Connectivity plc Balance Sheet: TEL Debt, Cash & Liquidity
TEL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: TE Connectivity plc's revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.03 reflects profitable operations.
TEL Revenue Growth, EPS Growth & YoY Performance
TEL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.8B | $528.0M | $1.75 |
| Q3 2025 | $4.0B | $573.0M | $1.86 |
| Q2 2025 | $4.0B | $13.0M | $0.04 |
| Q1 2025 | $3.8B | $528.0M | $1.75 |
| Q3 2024 | $4.0B | $528.0M | $1.67 |
| Q2 2024 | $4.0B | $433.0M | $1.36 |
| Q1 2024 | $3.8B | $397.0M | $1.24 |
| Q3 2023 | $4.0B | $528.0M | $1.67 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
TE Connectivity plc Dividends, Buybacks & Capital Allocation
TEL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for TE Connectivity plc (CIK: 0001385157)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TEL
What is the AI rating for TEL?
TE Connectivity plc (TEL) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TEL's key strengths?
Claude: Strong operating and net margins (20.6% and 16.1% respectively) indicate efficient cost management and pricing power. Solid revenue growth of 8.9% YoY demonstrates market demand and competitive positioning. ChatGPT: Strong profitability profile with 37.2% gross margin, 20.6% operating margin, and 16.1% net margin. Healthy financial position with 1.65x current ratio, 0.37x debt-to-equity, and 26.0x interest coverage.
What are the risks of investing in TEL?
Claude: Flat net income growth (0% YoY) despite 8.9% revenue growth suggests margin compression or expense acceleration requiring monitoring. Significant diluted EPS decline of 40.4% YoY indicates substantial share dilution or reduced per-share profitability. ChatGPT: Net income was flat despite solid revenue growth, which may indicate margin pressure below the operating line or weaker earnings conversion. Diluted EPS declined 40.4% year over year, raising concern about per-share earnings quality or unusual prior-period comparisons.
What is TEL's revenue and growth?
TE Connectivity plc reported revenue of $4.7B.
Does TEL pay dividends?
TE Connectivity plc pays dividends, with $209.0M distributed to shareholders in the trailing twelve months.
Where can I find TEL SEC filings?
Official SEC filings for TE Connectivity plc (CIK: 0001385157) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TEL's EPS?
TE Connectivity plc has a diluted EPS of $2.53.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TEL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, TE Connectivity plc has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is TEL stock overvalued or undervalued?
Valuation metrics for TEL: ROE of 5.8% (sector avg: 22%), net margin of 16.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy TEL stock in 2026?
Our dual AI analysis gives TE Connectivity plc a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TEL's free cash flow?
TE Connectivity plc's operating cash flow is $865.0M, with capital expenditures of $258.0M. FCF margin is 13.0%.
How does TEL compare to other Technology stocks?
Vs Technology sector averages: Net margin 16.1% (avg: 18%), ROE 5.8% (avg: 22%), current ratio 1.65 (avg: 2.5).