TE Connectivity Revenue vs. Operating Margin
| TEL Stock | USD 150.25 1.25 0.83% |
Total Revenue | First Reported 2006-03-31 | Previous Quarter 4 B | Current Value 4.1 B | Quarterly Volatility 490.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.32 | 0.3443 |
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| Net Profit Margin | 0.15 | 0.2015 |
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| Operating Profit Margin | 0.17 | 0.1883 |
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| Pretax Profit Margin | 0.17 | 0.1765 |
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| Return On Assets | 0.12 | 0.1397 |
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| Return On Equity | 0.22 | 0.2584 |
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For TE Connectivity profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TE Connectivity to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TE Connectivity utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TE Connectivity's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TE Connectivity over time as well as its relative position and ranking within its peers.
TEL |
TE Connectivity's Revenue Breakdown by Earning Segment
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Is Electronic Equipment, Instruments & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of TE Connectivity. If investors know TEL will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about TE Connectivity listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.48) | Earnings Share 10.35 | Revenue Per Share 51.612 | Quarterly Revenue Growth 0.008 | Return On Assets 0.0823 |
The market value of TE Connectivity is measured differently than its book value, which is the value of TEL that is recorded on the company's balance sheet. Investors also form their own opinion of TE Connectivity's value that differs from its market value or its book value, called intrinsic value, which is TE Connectivity's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because TE Connectivity's market value can be influenced by many factors that don't directly affect TE Connectivity's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between TE Connectivity's value and its price as these two are different measures arrived at by different means. Investors typically determine if TE Connectivity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TE Connectivity's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
TE Connectivity Operating Margin vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining TE Connectivity's current stock value. Our valuation model uses many indicators to compare TE Connectivity value to that of its competitors to determine the firm's financial worth. TE Connectivity is currently regarded number one company in revenue category among its peers. It also is currently regarded as top stock in operating margin category among its peers . The ratio of Revenue to Operating Margin for TE Connectivity is about 87,589,828,635 . At this time, TE Connectivity's Total Revenue is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value TE Connectivity by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.TEL Revenue vs. Competition
TE Connectivity is currently regarded number one company in revenue category among its peers. Market size based on revenue of Information Technology industry is at this time estimated at about 43.13 Billion. TE Connectivity totals roughly 15.85 Billion in revenue claiming about 37% of equities under Information Technology industry.
TEL Operating Margin vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
TE Connectivity |
| = | 15.85 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
TE Connectivity |
| = | 0.18 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
TEL Operating Margin Comparison
TE Connectivity is currently under evaluation in operating margin category among its peers.
TE Connectivity Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in TE Connectivity, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TE Connectivity will eventually generate negative long term returns. The profitability progress is the general direction of TE Connectivity's change in net profit over the period of time. It can combine multiple indicators of TE Connectivity, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 5 M | 4.8 M | |
| Operating Income | 3 B | 3.1 B | |
| Net Income | 3.2 B | 3.4 B | |
| Income Tax Expense | -397 M | -377.1 M | |
| Income Before Tax | 2.8 B | 1.6 B | |
| Total Other Income Expense Net | -186 M | -195.3 M | |
| Net Income Applicable To Common Shares | 2.2 B | 1.5 B | |
| Net Income From Continuing Ops | 3.2 B | 3.4 B | |
| Non Operating Income Net Other | 38.7 M | 40.6 M | |
| Interest Income | 87 M | 48.6 M | |
| Net Interest Income | 17 M | 17.9 M | |
| Change To Netincome | 378 M | 303.6 M | |
| Net Income Per Share | 10.40 | 7.52 | |
| Income Quality | 1.09 | 1.02 | |
| Net Income Per E B T | 1.14 | 0.89 |
TEL Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on TE Connectivity. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of TE Connectivity position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the TE Connectivity's important profitability drivers and their relationship over time.
Use TE Connectivity in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TE Connectivity position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TE Connectivity will appreciate offsetting losses from the drop in the long position's value.TE Connectivity Pair Trading
TE Connectivity Pair Trading Analysis
The ability to find closely correlated positions to TE Connectivity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TE Connectivity when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TE Connectivity - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TE Connectivity to buy it.
The correlation of TE Connectivity is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TE Connectivity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TE Connectivity moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TE Connectivity can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your TE Connectivity position
In addition to having TE Connectivity in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out World Market Map. For more information on how to buy TEL Stock please use our How to buy in TEL Stock guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
To fully project TE Connectivity's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of TE Connectivity at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include TE Connectivity's income statement, its balance sheet, and the statement of cash flows.