D/E 0.43 — near the Technology debt median (≈60th pctile)
P/E19.9xB+
P/E 19.9 — below the Technology median (≈40th pctile)
PEG0.88B+
PEG 0.88 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 70.9
Quality81.1
Growth82.1
Value53.6
Why this score
Buying back stock
Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week low
20% off the 12-month high
vs DCF fair value10% aboveest. fair value ~$185
What the price assumes: free cash flow compounding at ~11% a year for the next decade — vs the ~13% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability27% · Bgross profit ÷ total assets (Novy-Marx)
ROIC16.0% · A-return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
TE Connectivity is a high-quality compounder, driven by its essential connectivity and sensor solutions across the critical Transportation and Industrial Solutions segments. Our model's strong Growth pillar score of 82 underscores the company's ability to expand, evidenced by a robust 16.5% FY YoY revenue growth and a healthy 15.6% profit margin. With a PEG ratio of 0.92, the market isn't fully appreciating the sustained earnings power from its foundational components, especially as the company actively buys back stock and raises its dividend. The crux rests on the persistent demand for its core connectivity and sensor technologies in an increasingly interconnected world.
Moat
TE Connectivity's durable edge stems from its deeply embedded and mission-critical connectivity and sensor solutions, particularly within its Transportation and Industrial Solutions segments. The company's comprehensive portfolio, including specialized connectors, sensors, and wire management solutions, creates high switching costs for its customers who integrate these components into complex systems. This essential role and deep integration are reflected in a stellar 22.8% Return on Equity, driven by the pricing power derived from its category leadership and the technical expertise required for its broad array of application tooling and electromagnetic compatibility solutions.
Risk
The primary bear case against TE Connectivity centers on the cyclical nature of its end markets, particularly within the Transportation and Industrial Solutions segments, which could pressure demand for its core connectivity and sensor solutions. While our model's Value pillar scores a modest 53, indicating some valuation concerns, the current P/E of 21 could become stretched if the 16.5% FY YoY revenue growth decelerates significantly. Furthermore, our reverse DCF implies a sustained 12% annual free-cash-flow growth for 10 years, which, while below recent revenue growth, still requires consistent execution; a sustained dip in the company's profit margin below 15% would confirm that demand is softening and the bull thesis is breaking.
Horizon
1-3 yr $246.79 (19-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $311.57 at ~9% CAGR — dividend + buyback compounding. 10 yr $399.58 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
TEL vs the Top Picks average
Pillar
TEL
Book avg
Diff
Quality
0.81
0.84
-0.03
Growth
0.82
0.87
-0.05
Value
0.54
0.76
-0.22
Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · TEL
Trend
+5.5 over 47 daily scores
From 65.4 (Jun 22) → 70.9 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Analyst estimate revisions
30-day change
+0.1%
90-day change
+2.1%
Forward EPS estimate
$12.91
Over the last 90 days, what analysts expect TEL to earn is drifting higher (+2.1%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.
A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →
Position sizing · TEL
$
%
%
Shares to buy
9
Position size
$1,822
3.6% of portfolio
Stop price
$151.81
25% below $202.41
$ at risk if stopped
$455.42
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
TE Connectivity plc (TEL): score, valuation & FAQ
TE Connectivity plc (TEL) is a Electronic Components company that scores 70.9 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (B+), P/E (B+) and PEG (B+). On valuation, TEL sits about 10% above our discounted-cash-flow fair value — the current price implies roughly 11% annual free-cash-flow growth over the next decade.
Is TEL a good stock to buy?
Bull Rankings scores TEL 70.9 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by Rev (B+), P/E (B+) and PEG (B+). A score is a quantitative screen of TE Connectivity plc's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does TEL score 70.9 on Bull Rankings?
The score is carried by growth at 82.1 out of 100, and held back by value at 53.6 — the three pillars combine geometrically, so a weak one cannot be papered over by a strong one. TEL earns its highest marks on Rev (B+), P/E (B+) and PEG (B+). Each signal is graded against sector-aware thresholds rather than one absolute bar, so TEL is measured against Electronic Components peers, not against the market as a whole.
Is TEL overvalued or undervalued?
Based on $202.41, TEL sits about 10% above our discounted-cash-flow fair value — the current price implies roughly 11% annual free-cash-flow growth over the next decade. It trades at a 19.9x P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in TEL?
The primary bear case against TE Connectivity centers on the cyclical nature of its end markets, particularly within the Transportation and Industrial Solutions segments, which could pressure demand for its core connectivity and sensor solutions. While our model's Value pillar scores a modest 53, indicating some valuation concerns, the current P/E of 21 could become stretched if the 16.5% FY YoY revenue growth decelerates significantly. Furthermore, our reverse DCF implies a sustained 12% annual free-cash-flow growth for 10 years, which, while below recent revenue growth, still requires consistent execution; a sustained dip in the company's profit margin below 15% would confirm that demand is softening and the bull thesis is breaking.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.