📊 TEL Key Takeaways
Is TE Connectivity plc (TEL) a Good Investment?
TE Connectivity demonstrates strong operational execution with 8.9% revenue growth, excellent profitability metrics (20.4% operating margin, 37% gross margin), and conservative balance sheet leverage (0.42x debt/equity). However, stagnant net income growth despite revenue expansion and a severe 40% diluted EPS decline signal earnings quality deterioration that warrants caution.
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 and consistent profitability with 20.4% operating margin and 17.1% net margin across large $9.4B revenue base
- Excellent financial health with conservative 0.42x debt/equity ratio and exceptional 51.8x interest coverage ratio
- Robust free cash flow generation of $1.3B with healthy 13.6% FCF margin and $1.8B operating cash flow
- Solid revenue growth momentum at 8.9% YoY with healthy 37% gross margin demonstrating pricing power
- 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
- Net income completely flat despite 8.9% revenue growth indicates margin compression or operational headwinds
- Severe 40.4% diluted EPS decline despite stable earnings signals material share dilution and raises earnings quality concerns
- Low absolute cash position of $1.1B relative to $9.4B revenue may constrain strategic flexibility and growth investments
- Disconnect between revenue and earnings growth suggests underlying operational challenges or one-time charges masking true performance
- 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 and net income growth trajectory to assess if operating leverage is deteriorating or recovering
- Diluted share count and shares outstanding trends to identify EPS dilution drivers and capital allocation decisions
- Free cash flow conversion and operating cash flow sustainability to confirm earnings quality
- 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 |
|---|---|---|---|
| Q2 2026 | $4.1B | $13.0M | $0.04 |
| 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 |
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 (HOLD) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TEL's key strengths?
Claude: Strong and consistent profitability with 20.4% operating margin and 17.1% net margin across large $9.4B revenue base. Excellent financial health with conservative 0.42x debt/equity ratio and exceptional 51.8x interest coverage ratio. 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: Net income completely flat despite 8.9% revenue growth indicates margin compression or operational headwinds. Severe 40.4% diluted EPS decline despite stable earnings signals material share dilution and raises earnings quality concerns. 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 $9.4B.
Does TEL pay dividends?
TE Connectivity plc pays dividends, with $417.0M 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 $5.42.
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 May 2026, TE Connectivity plc has a BUY rating with 80% 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 12.1% (sector avg: 22%), net margin of 17.1% (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 $1.8B, with capital expenditures of $528.0M. FCF margin is 13.6%.
How does TEL compare to other Technology stocks?
Vs Technology sector averages: Net margin 17.1% (avg: 18%), ROE 12.1% (avg: 22%), current ratio 1.89 (avg: 2.5).