Recent News
On October 29, 2025 TE Connectivity reported fiscal fourth-quarter results that delivered 17% sales growth year-over-year and noted full-year records in sales, operating margin, and cash generation.
TE announced an Investor Day scheduled for November 20, 2025, where senior management planned to present strategy and outlook to investors.
Market commentary across December highlighted elevated short-term volatility for the stock, with notable intraday declines on December 12 and continued weakness on December 16–17 as broader market pressure weighed on shares.
Technical Analysis
ADX at 17.1 indicates no established trend; this metric reduces confidence in momentum-based breakout scenarios and favors range-sensitive tactics given the current valuation support.
Directional indicators present a bearish configuration: DI+ shows a peak-and-reversal while DI– shows a dip-and-reversal, which together signal selling pressure has gained advantage over buying pressure into the very near term.
MACD stands at –0.22 below its signal line at 0.40 and shows a peak-and-reversal; that combination signals bearish momentum and suggests short-term momentum has shifted toward downside pressure versus the recent rally.
MRO reads 12.9 and registers a peak-and-reversal; the positive oscillator indicates the price sits above the model target and, given the recent reversal, implies room for a corrective move back toward fair value estimates.
RSI at 54.67 with a peak-and-reversal reflects fading buying intensity rather than oversold conditions; momentum has trimmed from recent highs, supporting the case for a pullback before any resumption of advance.
Price trades below the 20-day and 50-day averages (both near $232) while remaining above the 200-day average of $188. That configuration signals near-term weakness overlaid on a longer-term uptrend, which may constrain downside but allow for transient consolidation around short-term support levels.
Bollinger bands place the lower 1x standard-deviation band at $224.97 and the price at $222.73, indicating a move slightly below the nearer-term band and suggesting elevated short-term volatility that could attract mean-reverting flows.
Ichimoku components (Tenkan at $234.28, Kijun at $231.54, Senkou A at $234.43, Senkou B at $223.99) place the price below the cloud boundary, reinforcing near-term bearish bias while leaving the long-run base intact given the 200-day average tailwind.
Fundamental Analysis
Revenue expanded strongly: year-over-year revenue growth reached 30.25% while quarter-over-quarter revenue growth registered 17.93%, reflecting robust top-line momentum across segments and supporting the valuation case.
Operating efficiency shows strength: operating margin at 19.81% and EBIT margin at 19.28% sit above the industry peer mean operating margin of 15.75% and the industry peer mean EBIT margin of 16.52%, respectively. EBIT margin improved QoQ by 3.86% but ticked down YoY by 0.64%, indicating near-term margin expansion alongside modest annual variability.
Profitability ratios favor the company versus peers: return on equity at 5.15% exceeds the industry peer mean of 4.95%, while return on assets at 2.63% sits above the industry peer mean of 1.72%, signaling efficient capital deployment relative to the peer set.
Cash generation remains solid: free cash flow hit $957 million with a free cash flow yield of 1.72%, above the industry peer mean free cash flow yield of 0.93%, supporting capital returns and acquisition financing flexibility.
Leverage and coverage present a mixed but manageable profile: debt to EBITDA stands near 5.23x and net debt approximates $5.03 billion, while interest coverage exceeds 31x, indicating ample earnings coverage of interest but a leverage multiple that requires monitoring if acquisition activity accelerates.
Shareholder returns carry modest yield and sustainable coverage: quarterly dividend equals $0.7166 per share with a dividend payout ratio of 33.23% and dividend coverage near 3.01, supporting continued cash returns without straining operating cash flows.
Valuation context: WMDST values the stock as under-valued. Price multiples show a P/E of 76.59 below the industry peer mean P/E of 90.59 and a price-to-book ratio of 4.49 that sits below the industry peer mean of 6.24 while remaining close to the industry peer median, supporting a valuation narrative of relative discount given durable cash generation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-10-29 |
| NEXT REPORT DATE: | 2026-01-28 |
| CASH FLOW | Begin Period Cash Flow | $ 2.6 B |
| Operating Cash Flow | $ 1.2 B | |
| Capital Expenditures | $ -230.00 M | |
| Change In Working Capital | $ 144.0 M | |
| Dividends Paid | $ -212.00 M | |
| Cash Flow Delta | $ -1.88 B | |
| End Period Cash Flow | $ 672.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.5 B | |
| Forward Revenue | $ 1.2 B | |
| COSTS | ||
| Cost Of Revenue | $ 2.9 B | |
| Depreciation | $ 216.0 M | |
| Depreciation and Amortization | $ 216.0 M | |
| Research and Development | $ 211.0 M | |
| Total Operating Expenses | $ 3.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.6 B | |
| EBITDA | $ 1.1 B | |
| EBIT | $ 874.0 M | |
| Operating Income | $ 898.0 M | |
| Interest Income | $ 17.0 M | |
| Interest Expense | $ 28.0 M | |
| Net Interest Income | $ -11.00 M | |
| Income Before Tax | $ 846.0 M | |
| Tax Provision | $ 208.0 M | |
| Tax Rate | 24.586 % | |
| Net Income | $ 638.0 M | |
| Net Income From Continuing Operations | $ 638.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.27 | |
| EPS Actual | $ 2.23 | |
| EPS Difference | $ -0.04 | |
| EPS Surprise | -1.762 % | |
| Forward EPS | $ 2.25 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 24.9 B | |
| Intangible Assets | $ 9.5 B | |
| Net Tangible Assets | $ 2.8 B | |
| Total Current Assets | $ 7.6 B | |
| Cash and Short-Term Investments | $ 672.0 M | |
| Cash | $ 672.0 M | |
| Net Receivables | $ 3.4 B | |
| Inventory | $ 2.8 B | |
| Long-Term Investments | $ 887.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 2.0 B | |
| Short-Term Debt | $ 851.0 M | |
| Total Current Liabilities | $ 5.0 B | |
| Net Debt | $ 5.0 B | |
| Total Debt | $ 5.7 B | |
| Total Liabilities | $ 12.3 B | |
| EQUITY | ||
| Total Equity | $ 12.4 B | |
| Retained Earnings | $ 13.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 41.85 | |
| Shares Outstanding | 295.840 M | |
| Revenue Per-Share | $ 15.33 | |
| VALUATION | Market Capitalization | $ 55.6 B |
| Enterprise Value | $ 60.6 B | |
| Enterprise Multiple | 55.581 | |
| Enterprise Multiple QoQ | 18.86 % | |
| Enterprise Multiple YoY | 20.964 % | |
| Enterprise Multiple IPRWA | high: 259.951 median: 77.876 mean: 68.828 TEL: 55.581 low: -219.031 |
|
| EV/R | 13.362 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.008 | |
| Asset To Liability | 2.015 | |
| Debt To Capital | 0.315 | |
| Debt To Assets | 0.229 | |
| Debt To Assets QoQ | -3.459 % | |
| Debt To Assets YoY | 320.0 % | |
| Debt To Assets IPRWA | high: 0.807 median: 0.296 mean: 0.26 TEL: 0.229 low: 0.002 |
|
| Debt To Equity | 0.46 | |
| Debt To Equity QoQ | -0.947 % | |
| Debt To Equity YoY | 365.352 % | |
| Debt To Equity IPRWA | high: 2.082 median: 0.7 mean: 0.668 TEL: 0.46 low: -0.922 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.487 | |
| Price To Book QoQ | 29.496 % | |
| Price To Book YoY | 25.271 % | |
| Price To Book IPRWA | high: 12.594 mean: 6.243 median: 4.785 TEL: 4.487 low: -8.439 |
|
| Price To Earnings (P/E) | 76.589 | |
| Price To Earnings QoQ | 14.119 % | |
| Price To Earnings YoY | -1.577 % | |
| Price To Earnings IPRWA | high: 287.529 mean: 90.587 median: 89.742 TEL: 76.589 low: -207.154 |
|
| PE/G Ratio | 0.015 | |
| Price To Sales (P/S) | 12.254 | |
| Price To Sales QoQ | 21.227 % | |
| Price To Sales YoY | 7.753 % | |
| Price To Sales IPRWA | high: 42.058 median: 16.035 mean: 15.593 TEL: 12.254 low: 0.0 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 69.533 | |
| Forward PE/G | 0.013 | |
| Forward P/S | 47.032 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.447 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.187 | |
| Asset Turnover Ratio QoQ | 3.967 % | |
| Asset Turnover Ratio YoY | 7.371 % | |
| Asset Turnover Ratio IPRWA | high: 0.479 mean: 0.194 TEL: 0.187 median: 0.17 low: 0.001 |
|
| Receivables Turnover | 1.369 | |
| Receivables Turnover Ratio QoQ | 0.863 % | |
| Receivables Turnover Ratio YoY | -0.863 % | |
| Receivables Turnover Ratio IPRWA | high: 2.906 mean: 1.522 median: 1.497 TEL: 1.369 low: 0.267 |
|
| Inventory Turnover | 1.08 | |
| Inventory Turnover Ratio QoQ | 5.03 % | |
| Inventory Turnover Ratio YoY | 12.693 % | |
| Inventory Turnover Ratio IPRWA | high: 2.529 median: 1.184 TEL: 1.08 mean: 1.022 low: 0.063 |
|
| Days Sales Outstanding (DSO) | 66.656 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 93.311 | |
| Cash Conversion Cycle Days QoQ | -2.026 % | |
| Cash Conversion Cycle Days YoY | -10.109 % | |
| Cash Conversion Cycle Days IPRWA | high: 272.391 mean: 102.265 TEL: 93.311 median: 88.157 low: -85.228 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.733 | |
| CapEx To Revenue | -0.051 | |
| CapEx To Depreciation | -1.065 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 17.2 B | |
| Net Invested Capital | $ 18.1 B | |
| Invested Capital | $ 18.1 B | |
| Net Tangible Assets | $ 2.8 B | |
| Net Working Capital | $ 2.6 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.135 | |
| Current Ratio | 1.525 | |
| Current Ratio QoQ | 0.798 % | |
| Current Ratio YoY | 1.15 % | |
| Current Ratio IPRWA | high: 7.762 mean: 2.261 median: 2.016 TEL: 1.525 low: 0.034 |
|
| Quick Ratio | 0.957 | |
| Quick Ratio QoQ | -11.29 % | |
| Quick Ratio YoY | -2.925 % | |
| Quick Ratio IPRWA | high: 7.334 mean: 1.748 median: 1.456 TEL: 0.957 low: 0.201 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.227 | |
| Cost Of Debt | 0.373 % | |
| Interest Coverage Ratio | 31.214 | |
| Interest Coverage Ratio QoQ | -43.173 % | |
| Interest Coverage Ratio YoY | -27.221 % | |
| Interest Coverage Ratio IPRWA | high: 52.785 TEL: 31.214 mean: 11.508 median: 10.714 low: -130.23 |
|
| Operating Cash Flow Ratio | 0.114 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 65.735 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.009 | |
| Dividend Payout Ratio | 0.332 | |
| Dividend Rate | $ 0.72 | |
| Dividend Yield | 0.004 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.115 % | |
| Revenue Growth | 9.438 % | |
| Revenue Growth QoQ | 17.931 % | |
| Revenue Growth YoY | 3025.166 % | |
| Revenue Growth IPRWA | high: 79.411 % mean: 10.104 % median: 10.065 % TEL: 9.438 % low: -43.951 % |
|
| Earnings Growth | 5250.0 % | |
| Earnings Growth QoQ | 68152.73 % | |
| Earnings Growth YoY | 195212.5 % | |
| Earnings Growth IPRWA | TEL: 5250.0 % high: 200.0 % median: 26.316 % mean: 18.987 % low: -133.333 % |
|
| MARGINS | ||
| Gross Margin | 35.289 % | |
| Gross Margin QoQ | 0.207 % | |
| Gross Margin YoY | 1.309 % | |
| Gross Margin IPRWA | high: 98.998 % mean: 39.845 % median: 36.34 % TEL: 35.289 % low: -49.356 % |
|
| EBIT Margin | 19.277 % | |
| EBIT Margin QoQ | 3.858 % | |
| EBIT Margin YoY | -0.644 % | |
| EBIT Margin IPRWA | high: 123.871 % TEL: 19.277 % median: 17.271 % mean: 16.521 % low: -211.309 % |
|
| Return On Sales (ROS) | 19.806 % | |
| Return On Sales QoQ | 6.708 % | |
| Return On Sales YoY | 2.082 % | |
| Return On Sales IPRWA | high: 43.501 % TEL: 19.806 % mean: 15.751 % median: 14.837 % low: -352.254 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 957.0 M | |
| Free Cash Flow Yield | 1.723 % | |
| Free Cash Flow Yield QoQ | 70.594 % | |
| Free Cash Flow Yield YoY | -9.029 % | |
| Free Cash Flow Yield IPRWA | high: 4.857 % TEL: 1.723 % mean: 0.934 % median: 0.912 % low: -16.248 % |
|
| Free Cash Growth | 126.241 % | |
| Free Cash Growth QoQ | -439.842 % | |
| Free Cash Growth YoY | 118.308 % | |
| Free Cash Growth IPRWA | high: 364.739 % TEL: 126.241 % median: 32.081 % mean: 12.778 % low: -329.708 % |
|
| Free Cash To Net Income | 1.5 | |
| Cash Flow Margin | 12.528 % | |
| Cash Flow To Earnings | 0.89 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.63 % | |
| Return On Assets QoQ | 4596.429 % | |
| Return On Assets YoY | 4.948 % | |
| Return On Assets IPRWA | high: 17.834 % TEL: 2.63 % mean: 1.718 % median: 1.671 % low: -36.426 % |
|
| Return On Capital Employed (ROCE) | 4.397 % | |
| Return On Equity (ROE) | 0.052 | |
| Return On Equity QoQ | 4671.296 % | |
| Return On Equity YoY | 13.602 % | |
| Return On Equity IPRWA | high: 0.433 TEL: 0.052 mean: 0.05 median: 0.044 low: -0.601 |
|
| DuPont ROE | 5.215 % | |
| Return On Invested Capital (ROIC) | 3.646 % | |
| Return On Invested Capital QoQ | 39.854 % | |
| Return On Invested Capital YoY | -101.367 % | |
| Return On Invested Capital IPRWA | high: 8.434 % TEL: 3.646 % mean: 3.115 % median: 3.068 % low: -15.502 % |
|