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Is TE Connectivity (TEL) Fully Valued On Board Changes And Earnings Ahead?

Simply Wall St · 1d ago

Board retirement and upcoming earnings put TE Connectivity in focus

TE Connectivity (TEL) has two events on the calendar that matter for shareholders. Longtime director William A. Jeffrey plans to retire, and fourth quarter and full year 2026 results are scheduled for release on October 28.

Recent trading has been mixed for TE Connectivity, with the share price down 0.7% on the day and 1.6% over the past week. However, it has shown a 4.6% 1 month share price return and a 6.9% 3 month share price return, as investors weigh the coming earnings release and board change against a softer year to date share price return and an 80.4% 3 year total shareholder return that points to stronger longer term momentum.

Scan how TE Connectivity compares with other hand picked industrial and tech suppliers that could be setting up for the next move inside our 43 power grid technology and infrastructure stocks

TE Connectivity’s share price has cooled this year after a strong multi year run, even as earnings growth and a valuation discount appear favorable. Is that enough potential upside to justify the risk at today’s level?

Most Popular Narrative: 30% Undervalued

TE Connectivity’s most followed narrative pegs fair value at $215, almost exactly in line with the latest $214.31 close. This frames today’s debate more around durability of cash flows than a clear pricing gap.

While TE Connectivity generated about US$2.2b of free cash flow with conversion close to 100% of net income and returned roughly US$2b to shareholders in 2026 year to date, insider selling and the April 2026 share price decline of 18% over six days underline the risk that continued high levels of buybacks and acquisition spend at current valuations compress future free cash flow yield and constrain earnings growth per share.

See why 3 investors see TE Connectivity as 0% undervalued.

Result: Fair Value of $215 (UNDERVALUED)

Still, TE Connectivity could see this cautious script challenged if AI oriented data center architectures continue to favor higher power content and the Astrodyne TDI deal scales smoothly.

Find out about the key risks to this TE Connectivity narrative.

Next Steps

Mixed views on TE Connectivity are clear. Use that tension as a prompt to move quickly and test the numbers yourself. To see which potential upsides investors are focusing on, review the 5 key rewards.

Looking for more TE Connectivity investment ideas?

If TE Connectivity has you thinking harder about where to put fresh capital, use that momentum and scan a broader set of opportunities before the market moves.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.