# TE Connectivity (TEL) Sector: Electronic components: connectors and sensors | Field | Value | |---|---| | Price | $217.76 | | Market cap | $62B | | Intrinsic value source | Analysts | | Data as of | 2026-11-11 | | Next earnings | 2027-01-28 (estimate) | Analysts: Bullish Picks: Research only Discount category: Close to intrinsic value ## In short TE Connectivity trades close to its intrinsic value because investors weigh fast growth in AI data centers against slow growth in cars, and double-digit sales growth with stable margins can lift the value. ## Themes and gap - Themes: AI supplier (ai-supplier), Tariffs and trade (trade-tariffs) - Gap type: Can close (closable) - Why: The Q1 fiscal 2027 report in late January 2027 shows whether the record orders turn into sales growth near 12% with stable margins. ## About TE Connectivity makes connectors, sensors and other parts that carry power, signals and data in cars, trucks, factories, data centers, power grids, aircraft and medical devices. In the fiscal year to September 25, 2026, net sales were $19,885 million. Transportation Solutions gave $10,069 million, of which $7,523 million came from automotive. Industrial Solutions gave $9,903 million from digital data networks for data centers, automation and connected living, energy, aerospace, defense and marine, and medical. Asia-Pacific gave 39% of sales, EMEA 32% and the Americas 29%. The fiscal year ends on the last Friday of September. TE had about 104,000 employees at the end of fiscal 2026. It is incorporated in Ireland since September 30, 2024, when it moved from Switzerland. Its shares trade on the New York Stock Exchange. The head office is in Galway, Ireland. Terrence Curtin is Chief Executive Officer. ## Thesis TE Connectivity trades close to its intrinsic value because investors pay for its growth in AI data centers and energy networks, but they weigh it against slow growth in cars, which give three quarters of the sales of Transportation Solutions. In fiscal 2026, Industrial Solutions sales rose 26% and orders rose 27% to $22.2 billion, while automotive sales grew 3.0% organically. For the value to rise, three things must be true. Orders must turn into sales, so that organic sales growth in fiscal 2027 is similar to the 12% of fiscal 2026, as TE expects. The adjusted operating margin must stay at about 22% while TE adds capacity and buys Astrodyne for about $1.4 billion. Car production must stay stable, mainly in China and Europe. The Q1 fiscal 2027 report, expected in late January 2027, is the next test: TE expects sales of about $5.35 billion and adjusted EPS of about $3.30. A slowdown in AI data center spending can lower growth fast, because digital data networks gave much of the growth. ## Checkpoints - Oct 28, 2026: Q4 fiscal 2026 results and the fiscal 2027 view. Status: Passed. Watch: Sales growth of 10% or more and an outlook for double-digit growth in fiscal 2027 pass; a lower outlook fails. Outcome: Q4 sales rose 12% to $5.3 billion, and TE expects double-digit sales growth in fiscal 2027. - Dec 2026 (estimate): Astrodyne purchase closes. Status: Pending. Watch: A closing by the end of calendar 2026 passes; a long delay or a stop of the deal fails. - Jan 28, 2027 (estimate): Q1 fiscal 2027 results. Status: Pending. Watch: Sales of about $5.35 billion and adjusted EPS of about $3.30 or more pass; lower results fail. ## Balance sheet - Cash: $1.7B - Debt: $5.6B - Net debt: $3.9B - Undrawn credit line: $3.0B, to February 2031 - Debt due within 12 months: $502M TE funds itself with cash flow, senior notes and commercial paper. At September 25, 2026, short-term debt was $502 million and long-term debt $5,137 million, so total debt was $5,639 million. Cash and cash equivalents were $1,697 million. In February 2026, TE issued $750 million of senior notes due 2031 and 2036 and replaced its credit facility with a $3.0 billion facility that runs to February 2031, with no borrowings at the end of fiscal 2026. In fiscal 2026, cash flow from operating activities was $4,525 million and free cash flow $3,412 million. TE bought back shares for $1,892 million and paid dividends of $869 million, and $2.5 billion of the repurchase authorization was left. Total shareholders' equity was $13,573 million. There were 286,695,097 shares on November 5, 2026. The quarterly dividend is $0.78 per share. TE expects to pay about $1.4 billion in cash for Astrodyne by the end of calendar 2026. As of 2026-09-25. Sources: - https://www.sec.gov/Archives/edgar/data/1385157/000110465926119326/tel-ex99d1.htm - https://www.sec.gov/Archives/edgar/data/1385157/000110465926124497/tel-20260925x10k.htm - https://www.sec.gov/Archives/edgar/data/1385157/000110465926015617/tm266298d1_8k.htm ## Dividends - Dividend yield: 1.0% (last 12 months, at the current price) - Paid per share, last 12 months: $2.27 (3 payments) - Current annual rate: $3.12 ($0.78 x 4 a year) - Payout ratio: 21% of the earnings of the last fiscal year (the year ended 2026-09-25) - Latest ex-dividend date: 2026-08-21, $0.78 per share - Growth from 2020 to 2025: 1.7% a year - Growth from 2015 to 2025: 4.9% a year Dividends per share by year: 2016: $1.44, 2017: $1.57, 2018: $1.72, 2019: $1.82, 2020: $1.90, 2021: $1.98, 2022: $2.18, 2023: $2.33, 2024: $2.54, 2025: $2.07. Source: company filings and market data, read on 2026-11-11. ## Recent events - 2026-11-02: TE said that John S. Jenkins, Jr., Executive Vice President and General Counsel, will retire on March 31, 2027. Jennifer A. Johnson joins as Executive Vice President and Chief Legal Officer, which TE expected on November 9, 2026. - 2026-10-28: TE reported results for Q4 and the fiscal year 2026. Q4 net sales rose 12% to a record $5.3 billion, orders rose 29% to $6.1 billion, and adjusted EPS rose 21% to $3.14. For the year, net sales rose 15% to $19.9 billion, adjusted EPS rose 24% to $11.52, GAAP EPS was $11.07, and free cash flow was $3.4 billion. TE expects double-digit sales growth in fiscal 2027. - 2026-07-22: TE reported Q3 fiscal 2026 results. Net sales rose 14% to a record $5.16 billion, adjusted EPS rose 22% to $2.94, and orders rose 27% to $5.7 billion. TE agreed to buy Astrodyne TDI, a maker of power and filter products, for about $1.4 billion in cash. - 2026-02-13: TE replaced its $1.5 billion revolving credit facility with a new $3.0 billion five-year facility. On February 9, 2026, it issued $200 million of 4.500% senior notes due 2031 and $550 million of 4.875% senior notes due 2036. ## Latest news and filings - Last earnings: 2026-10-28 (8-K: https://www.sec.gov/Archives/edgar/data/1385157/000110465926119326/) - Next earnings: 2027-01-28 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-11-09 | 10-K | Annual report for the period ended Sep 25, 2026 | 2026-09-25 | tel-20260925x10k | https://www.sec.gov/Archives/edgar/data/1385157/000110465926124497/tel-20260925x10k.htm | | 2026-11-02 | 8-K | Change of directors or officers | | | https://www.sec.gov/Archives/edgar/data/1385157/000110465926120997/tm2628584d1_8k.htm | | 2026-10-28 | 8-K | Earnings release and Investor disclosure | | tel-20261028x8k | https://www.sec.gov/Archives/edgar/data/1385157/000110465926119326/ | | 2026-10-07 | 8-K | Change of directors or officers | | | https://www.sec.gov/Archives/edgar/data/1385157/000110465926114188/tm2627096d1_8k.htm | | 2026-07-24 | 10-Q | Quarterly report for the period ended Jun 26, 2026 | 2026-06-26 | tel-20260626x10q | https://www.sec.gov/Archives/edgar/data/1385157/000110465926086509/tel-20260626x10q.htm | | 2026-07-22 | 8-K | Earnings release and Investor disclosure | | tel-20260722x8k | https://www.sec.gov/Archives/edgar/data/1385157/000110465926085589/ | | 2026-04-24 | 10-Q | Quarterly report for the period ended Mar 27, 2026 | 2026-03-27 | tel-20260327x10q | https://www.sec.gov/Archives/edgar/data/1385157/000110465926048160/tel-20260327x10q.htm | | 2026-04-22 | 8-K | Earnings release and Investor disclosure | | tel-20260422x8k | https://www.sec.gov/Archives/edgar/data/1385157/000110465926046285/ | | 2026-03-11 | 8-K | Shareholder vote results | | | https://www.sec.gov/Archives/edgar/data/1385157/000110465926026421/tm268474d1_8k.htm | | 2026-02-17 | 8-K | New material agreement and End of a material agreement | | | https://www.sec.gov/Archives/edgar/data/1385157/000110465926015617/tm266298d1_8k.htm | Every filing on SEC EDGAR (CIK 1385157): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001385157&type=&dateb=&owner=include&count=40 ## Risks - Medium: Much of the growth comes from connectors for AI data centers. Sales of digital data networks rose 34% in Q4 fiscal 2026, and a slowdown in data center spending can lower growth fast. - Medium: Automotive gives about three quarters of the sales of Transportation Solutions. Lower car production, a slower change to electric cars or price pressure from car makers can reduce sales and margins. - Medium: TE sells products in about 130 countries. Tariffs, export controls and trade disputes can raise costs and disrupt supply chains. - Low: TE grows partly through acquisitions, such as Richards Manufacturing for about $2.3 billion in fiscal 2025 and Astrodyne for about $1.4 billion. A weak integration can lower margins. - Low: Most sales are outside the United States. A stronger U.S. dollar lowers reported sales and earnings. ## Links - Page: https://picks.utilarium.app/company/TEL/ - History of changes: https://picks.utilarium.app/company/TEL/history/ - JSON with full history: https://picks.utilarium.app/data/company/TEL.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.