Is the business good?
How good a business is TEL?
TE Connectivity earns 17% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
17%
Return on invested capital · cost of capital 9.0% · 8.1 points above what the capital costs: growth creates value
- Operating margin
- 20%
Operating margin · Electronic Components median 9.6% · 12 months to Q3 2026
- Cash conversion
- 1.10×
Cash conversion · 1.98× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 4.4% |
| FY2021 | 16% |
| FY2022 | 17% |
| FY2023 | 14% |
| FY2024 | 18% |
| FY2025 | 19% |
Details›
- Gross margin12 months to Q3 2026
- 36%
- Operating margin12 months to Q3 2026
- 20%
- Net margin12 months to Q3 2026
- 16%
- Free cash flow margin
- 17%
- Revenue, trailing twelve months
- $19.3B
- Free cash flow, trailing twelve months
- $3.31B
- Net income, trailing twelve months
- $3.02B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 17%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Electronic Components
Ranks #7 of 23 by Smart Score