TEL:NYSE

TE Connectivity plc

Data as of 2026-03-10 - not real-time

$206.24

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

TE Connectivity (TEL) trades modestly below its discounted cash‑flow estimate, suggesting a slight undervaluation. The short‑term moving average sits just above the medium‑term average while the long‑term average remains lower, indicating a neutral technical stance, and the RSI is in the lower‑mid range, hinting at potential upside.
Fundamentally, the company delivers robust revenue growth, solid margins and a healthy free cash flow that comfortably covers its dividend, which is supported by a payout ratio well under half of earnings. Recent material news highlights a surge in AI‑related revenue and a successful $750 million refinancing, both of which bolster the growth narrative and improve the balance sheet. These factors, combined with a strong market position across multiple high‑growth end markets, make TEL an attractive candidate for medium‑ to long‑term investors despite short‑term technical headwinds.

Trading Recommendations

Short Term

< 1 year
hold
Conviction: 6/10

Key Factors

  • bearish MACD divergence
  • price near recent support level
  • increasing volume suggesting potential reversal

Medium Term

1–3 years
buy
Conviction: 8/10

Key Factors

  • strong revenue and margin expansion
  • AI‑driven demand acceleration
  • refinancing improves leverage and cash flexibility

Long Term

> 3 years
buy
Conviction: 9/10

Key Factors

  • sustainable free cash flow generation
  • dividend stability with low payout ratio
  • strategic exposure to IoT, automotive and industrial trends

Key Metrics & Analysis

Financial Health

Revenue Growth21.70%
Profit Margin11.41%
P/E Ratio29.7
ROE16.10%
ROA9.39%
Debt/Equity45.69
P/B Ratio4.7
Op. Cash Flow$4.1B
Free Cash Flow$2.0B
Industry P/E36.8

Technical Analysis

TrendNeutral
RSI36.7
Support$197.07
Resistance$245.00
MA 20$225.50
MA 50$227.64
MA 200$211.36
MACDBearish
VolumeIncreasing
Fear & Greed Index75.89

Valuation

Fair Value$210.92
Target Price$275.37
Upside/Downside33.52%
GradeUndervalued
TypeBlend
Dividend Yield1.38%

Risk Assessment

Beta1.25
Volatility46.84%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies. Not financial advice. Always do your own research before making any investment decisions.