TE Connectivity Ltd. TEL
TE Connectivity remains a hold as the operating story strengthens but headline earnings and balance sheet signals stay mixed. FY2025 (ended 2025-09-26) revenue grew 7.85% to $17.09B with operating margin expanding to 18.79% and operating income reaching $3.21B, yet net income fell 42.31% to $1.84B (EPS $6.16 vs $10.33) and total debt jumped to $6.55B from $4.96B, pointing to one-time below-the-line charges and possibly an acquisition that need clarification.
The stock trades at a 42% P/E discount (19.69x vs peer median 34.04x) and 44% EV/EBITDA discount (12.77x vs 22.97x) to peers, but as of 2026-08-28 it sits below both its 50-day ($205.55) and 200-day ($217.06) moving averages with a negative MACD histogram of -1.20, and insiders have been net sellers of $129.6M over 24 months. The risk/reward is balanced; awaiting confirmation of earnings normalization and debt stabilization before turning constructive.
What could go wrong
- Earnings quality. FY2025 net income fell 42.31% to $1.84B despite operating income rising to $3.21B, suggesting material one-time charges that could recur or signal deeper issues.
- Balance sheet leverage. Total debt increased to $6.55B in FY2025 from $4.96B in FY2024, a meaningful jump that raises financial risk if not tied to value-accretive deployment.
- Technical deterioration. As of 2026-08-28, stock at $202.66 trades below both 50-day MA ($205.55) and 200-day MA ($217.06) with negative MACD histogram (-1.20), indicating downtrend momentum.
- Insider selling. Over the trailing 24 months, insiders net sold approximately 533,198 shares worth $129.6M, with no cluster buys detected.
What would change my mind
Where this comes from: FMP FY2025 annual + derived_metrics · FMP FY2025 annual + derived_metrics · FMP FY2025 annual · peer_relative composite. Orin's read on TEL; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All TEL filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Brasada Capital Management | $4.9B | 0.9% of fund |
| Vanguard Capital Management | $3.8B | 0.1% of fund |
| Vanguard Portfolio Management | $3.4B | 0.2% of fund |
| State Street | $2.8B | 0.1% of fund |
| Wellington Management Group Llp | $1.6B | 0.3% of fund |
| Price T Rowe Associates /Md/ | $1.5B | 0.2% of fund |
109 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 181 Form 4 filings, net −$129.6M. Of the 50 on hand, 0 were open-market purchases and 31 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about TEL
Orin answers questions about TEL from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 20.8× | 20.4× | 53.3× |
| EV/EBITDA | 13.4× | 13.6× | — |
| P/S | 3.23× | 2.93× | — |
| P/B | 4.7× | 3.8× | — |
Its P/E sits 60th percentile of its own last 5 years (−0.05σ from its own mean).
7.3%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $3.2B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$247
$220 – $300 · +14% against today's price
- 14 buy or overweight
- 15 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| TELTE Connectivity Ltd. | $62B | 20.8× | 13.4× | 35.4% | 15.8% | 23% |
| APHAmphenol Corporation | $205B | 39.6× | 23.4× | 38.5% | 17.8% | 37% |
| BHEBenchmark Electronics, Inc. | $3B | 55.5× | 20.4× | 10.2% | 1.9% | 5% |
| CLSCelestica Inc. | $43B | 38.4× | 28.7× | 12.0% | 7.2% | 51% |
| FLEXFlex Ltd. | $42B | 43.4× | 23.4× | 9.5% | 3.3% | 19% |
| FNFabrinet | $14B | 30.2× | 25.1× | 12.0% | 10.2% | 21% |
| JBLJabil Inc. | $33B | 38.4× | 16.5× | 9.2% | 2.6% | 62% |
| LFUSLittelfuse, Inc. | $11B | — | 38.4× | 39.3% | -0.3% | -0% |
| LYTSLSI Industries Inc. | $769M | 30.2× | 28.4× | 25.1% | 3.3% | 8% |
| MEIMethode Electronics, Inc. | $516M | — | 11.5× | 19.3% | -3.5% | -5% |
| OSISOSI Systems, Inc. | $3B | 21.8× | 18.1× | 33.2% | 8.7% | 18% |
| PLXSPlexus Corp. | $7B | 37.8× | 28.1× | 10.0% | 4.0% | 12% |
| SANMSanmina Corporation | $12B | 38.9× | 18.7× | 9.0% | 2.4% | 13% |
| VICRVicor Corporation | $13B | 86.5× | 94.6× | 56.6% | 30.6% | 20% |
The median is of the 11 peers listed above and nothing else — check it against the column. This company trades 46.0% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.