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.
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 yearhold
Conviction: 6/10
Key Factors
- bearish MACD divergence
- price near recent support level
- increasing volume suggesting potential reversal
Medium Term
1–3 yearsbuy
Conviction: 8/10
Key Factors
- strong revenue and margin expansion
- AI‑driven demand acceleration
- refinancing improves leverage and cash flexibility
Long Term
> 3 yearsbuy
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
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This analysis may contain inaccuracies. Not financial advice. Always do your own research before making any investment decisions.