TE Connectivity Ltd (TEL) Stock

TE Connectivity Ltd trades at a P/E ratio of 39.52, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 23.47 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.33 indicates a premium valuation even accounting for growth.

With a beta of 1.25, TE Connectivity Ltd is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 5.28 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

TE Connectivity Ltd achieves a profit margin of 10.70%, meaning it retains $10.70 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 19.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 14.60% and ROA at 8.82%, the company achieves moderate returns on invested capital.

TE Connectivity Ltd's revenue grew by 16.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 144.40% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against ELECTRONIC COMPONENTS industry averages for proper context.

TE Connectivity Ltd has a market capitalization of $71.9B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 295.48M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ELECTRONIC COMPONENTS industry, it competes with other firms in this sector.

TE Connectivity Ltd's book value per share is $42.73, while the current stock price is $242.55, resulting in a price-to-book (P/B) ratio of 5.68. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

17 analysts cover TEL with 71% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $262.56 implies 8.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:012 Buy, 4 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.