CluenexTE Connectivity Ltd TEL
TE Connectivity Ltd scores average on business quality (5.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What TE Connectivity Ltd does
TE Connectivity designs and manufactures extreme-environment connectors and sensors, selling directly to automotive, industrial, and communications equipment makers. It generates revenue by embedding proprietary components into systems where failure is not an option.
- What it does best
TE Connectivity excels at building mission-critical connectors that withstand extreme environments, evidenced by a 23.2% ROE that sits comfortably in the top quartile of its sector. This edge relies on deep customer design cycles that make switching suppliers difficult.
- The main risk
Supply chain disruptions and component cost inflation threaten operating margins, as raw material price swings directly squeeze its 36.1% gross margin without immediate pricing pass-throughs.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at 20.5% with a 33rd percentile FCF margin rank, pointing to stable profitability that scales reliably as production volumes increase.
Switching costs form its primary moat, locking in industrial and automotive manufacturers who design TE parts into complex machinery. Its 59th percentile ROE highlights decent returns, but sector rank limits suggest a narrow barrier.
Revenue growth of 8.9% shows an acceleration from the flat lines seen in past years, driven by recovering demand across its core industrial and transport markets.
Debt-to-equity of 0.5 and interest coverage of 32x mean debt costs are entirely manageable, while $3.3B in free cash flow shows reliable cash generation getting stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on TEL
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
TE Connectivity Ltd scores average on the Cluenex quality check (5.8 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 28, 2026, after the close.
See TEL today
- Today's verdict on TEL, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “TE Connectivity Ltd (TEL)”, https://cluenex.com/stocks/tel/, data as of Oct 10, 2026.