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TE Connectivity: Valuation Headwinds With Dividend And Buyback Support

Sep. 06, 2023 4:33 PM ETTE Connectivity Ltd. (TEL)2 Comments
Zach Bristow profile picture
Zach Bristow


  • TE Connectivity offers plenty of objective strengths, with strong cash flows, dividends, and high returns on capital.
  • Q3 FY'23 results showed stable orders and a decline in sales, but the company generated tidy growth and has returned $1.2 billion to shareholders this YTD.
  • Starting valuations are a headwind in my view, but a repricing may offer a more attractive entry point.
  • Net-net, rate hold.

New York Stock Exchange, Wall st, New York, USA

Matteo Colombo

Investment briefing

TE Connectivity Ltd. (NYSE:TEL) is a company that offers multiple inflection points for potential investment. Cash flows, dividends + buybacks, economic earnings, high returns on capital, they are all there. By all means, TEL is an investment-grade company. The only mitigating fact in the investment

This article was written by

Zach Bristow profile picture
Strategist, global markets, at Bernard Holdings. Objective view on the directional bias of markets. Technical expertise bridges the complex relationships between value drivers, capital flows and price action. Clients are represented over the cross-section of financial markets, from speculators, hedgers, long-term traders and the public. Research covers investment securities and futures markets.Shoot me a message to talk trade ideas or portfolio construction. Disclaimer:All research is strictly for informational purposes only. Not to be considered investment advice. Please remember to conduct your own due diligence.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (2)

RatherBeWithMyDog profile picture
Thanks as always @Zach Bristow for an insightful piece. I currently own a full position in APH, but have noted the material discount TEL comparatively trades at. Fundamentally, both names appear very similar—what’s your POV on the multiple premium assigned to APH? I also own FAST, which similarly trades at a premium to peers, and have thus been looking closer at MSM.
Zach Bristow profile picture
@RatherBeWithMyDog Will have to have another close look at APH.
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