TE Connectivity Ltd. (NYSE:TEL) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TEL, it is a financially-healthy , dividend-paying company with a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on TE Connectivity here.
Outstanding track record established dividend payer
In the past couple of years, TEL has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 31%, which is an optimistic signal for the future. TEL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that TEL has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. TEL appears to have made good use of debt, producing operating cash levels of 0.61x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, TEL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.0%.
For TE Connectivity, there are three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TEL’s future growth? Take a look at our free research report of analyst consensus for TEL’s outlook.
- Valuation: What is TEL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TEL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TEL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.