TE Connectivity plc (TEL) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: TE Connectivity plc

Updated on October 29, 2026 · accounts published on October 28, 2026

Reading of October 28, 2026: A highly profitable business with record operating margins and a light debt load

TE Connectivity trades at a P/E of 21.7× over the last 12 months, 32 % below its sector median but 24 % above its own ten-year median.

• Is TE Connectivity expensive or cheap? Its P/E of 21.7× is 32 % below the sector median, yet higher than in 83 % of the past decade.
• How is the business doing? Operating margin is 20 % over the last 12 months, above the 19 % of fiscal 2025, already the best in 12 years.
• How strong is the balance sheet? Net debt is 1.3× EBITDA in fiscal 2025, and the dividend has risen for 11 straight fiscal years.
• Is it growing with real cash or by diluting shareholders? Stock-based pay is just 0.9 % of revenue, but revenue per share grew only 4.5 % a year in fiscal 2022-2025.
• What to expect from the next earnings? Analysts expect EPS of $2.98 on January 20, 2027; the company beat estimates in each of the last 8 quarters.

Is TE Connectivity expensive or cheap?

TE Connectivity trades at a P/E of 21.7× over the last 12 months, 32 % below the 32.0× median of 314 sector peers. Against its own history it looks fuller: the ten-year median is 17.5×, so today's multiple sits 24 % above it, and the stock has traded at a lower P/E 83 % of the time in the last decade, within a range of 9.7× to 25.8×. EV/EBITDA of 12.9× is below its five-year average of 14.2×, inside the band that counts as neither cheap nor expensive. The shares are 10 % below their 52-week high.

How is the business doing?

Revenue grew 16 % and EPS 80 % over the last 12 months, and profitability is at a peak. The operating margin of 20 % compares with a 17 % average for fiscal 2014-2025, and the 19 % of fiscal 2025 was already the highest of those 12 years. ROIC of 15 % over the last 12 months is 6.9 points above the 8 % median of 460 sector peers, and it stayed above 10 % in 8 of the last 10 fiscal years, with 2020 the weak spot at −5.4 %. A decade of solid returns makes the current peak look earned.

How strong is the balance sheet?

TE Connectivity carries little leverage. Net debt was $18.09 per share in fiscal 2025, about 8 % of the current share price, and 1.3× EBITDA against the 2.0× the sector tolerates. Debt to equity is 0.42 over the last 12 months, the current ratio 1.73 and the Altman Z-score 5.1, well inside the safe zone; the Piotroski score is 6 of 9. The dividend yields 1.3 % and has grown for 11 consecutive fiscal years, with a payout of 44 % of fiscal 2025 earnings, which leaves room to keep raising it.

Is it growing with real cash or by diluting shareholders?

In technology, generic ratios miss what matters: growth, pricing power and dilution from stock-based pay, which can make reported profits look better than what shareholders keep. TE Connectivity passes the dilution test: stock compensation was 0.9 % of fiscal 2025 revenue, far under the 10 % healthy ceiling. Free cash flow was 18.7 % of revenue, just short of the 20 % bar. The weak spots are growth and gross margin: revenue per share grew 4.5 % a year over fiscal 2022-2025 against a 15 % healthy pace, and the 35 % gross margin falls short of the 45 % the sector asks of chipmakers. Growth comes with cash, at a slower pace.

What to expect from the next earnings?

On October 28, 2026, TE Connectivity reported EPS of $3.14 against $3.07 expected, a 2.3 % beat and its eighth in eight quarters. For the quarter due on January 20, 2027, analysts expect $2.98. The 2027 EPS consensus rose 0.7 % in the last 30 days, from $13.00 to $13.09 among 8 analysts, while the revenue forecast barely moved. Of the 29 analysts covering the stock, 14 rate it a buy, 15 a hold and none a sell. The bar is a step down from the last quarter, and the beat streak is the figure to watch.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.