Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
TE Connectivity (TEL): AI-Driven Topline Growth Expected to Double & EV Exposure Continues to Attract– What’s the Impact, Outlook & Key Catalysts to our Fair Value?
TE Connectivity (TEL) capped fiscal 2024 with robust financial results, highlighted by record adjusted operating margins of 18.9% (+220 bps YoY), adjusted EPS of $7.56 (+12% YoY), and $2.8B in free cash flow (+17% YoY). The company reported $4.07B in revenue (+1% YoY), exceeding estimates by $70.4M, driven by strength in AI-related infrastructure, aerospace, and renewable energy, though offset by softness in industrial automation and commercial transportation markets. AI-related revenue outperformed expectations at $300M and is projected to double to $600M in fiscal 2025, supported by scalable design wins and increasing hyperscaler and semiconductor investments. Electrification remains a structural growth driver, with TEL outpacing global automotive production (-5%) by 400 bps in 2024 and expecting 4–6% content growth in 2025 despite muted market demand. The realignment into two segments—Transportation and Industrial Solutions—reflects a deliberate focus on growth verticals such as EVs, AI, and renewable energy, with $100M in CapEx earmarked for AI programs and expanding automotive capacity. While industrial end-markets face headwinds, TEL’s disciplined execution and exposure to megatrends like data connectivity and electrification underpin its long-term growth potential. Can TEL sustain its market outperformance and margin expansion while navigating cyclical pressures and leveraging secular tailwinds?
