TEL

TE Connectivity Ltd - Registered Shares

Industrial/Transportation


Presented:02/02/2022
Price:$147.96
Cap:$48.17B
Current Price:$146.29
Cap:$44.46B

Presented

Date02/02/2022
Price$147.96
Market Cap$48.17B
Ent Value$55.42B
P/E Ratio20.07x
Book Value$33.78
Div Yield1.34%
Shares O/S325.58M
Ave Daily Vol1,559,560
Short Int1.18%

Current

Price$146.29
Market Cap$44.46B
TE Connectivity Ltd. engages in the design and manufacture of connectivity and sensors solutions. It operates through the following segments: Transportation, Industrial, and Communications Solutions. The Transportation Solutions segment offers products that are used in the automotive, commercial transportation, and sensors markets. The Industrial Solutions segment provides products that connect and distribute power, data, and signal. The Communications Solutions segment supplies electronic components for the data and devices and appliances markets. The company was founded in 2000 and is headquartered in Schaffhausen, Switzerland.

Publicly traded companies mentioned herein: TE Connectivity Ltd (TEL)

Highlights

The presenter has a tactical short in TE Connectivity Ltd (TEL), which despite being a strong company, may face headwinds as a relative underperformer compared to auto supplier peers since TEL has been over earning in autos for over a year now. While many other auto suppliers have also benefited from mix, allowing their growth over the market to exceed historical averages, TEL’s growth over the market was 20%+ in FY2021 and management is telegraphing that it will be at the high end of the 4% – 6% normalized growth over market in FY2022, which may prove a difficult setup to execute on. Management has previously discussed the need for channel inventory to be built and in the most recent earnings call (Q1’22), CEO Terrance Curtin mentioned that TEL’s distributors need 180 days of inventory but are only at 150 days currently. If the auto production landscape is improving, he imagines that TEL will be a relative underperformer. 

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Idea Discussion

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