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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on TE Connectivity Ltd. (NYSE:TEL) due to its excellent fundamentals in more than one area. TEL is a financially-sound , dividend-paying company with a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on TE Connectivity here.
Outstanding track record established dividend payer
Over the past few years, TEL has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 29% return to shareholders, which is what investors like to see! TEL's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. TEL appears to have made good use of debt, producing operating cash levels of 0.59x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
TEL is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For TE Connectivity, I've compiled three essential aspects you should further research:
- 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 firstname.lastname@example.org. 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.