Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

TE's restructuring efforts should continue to boost margins as costs are wrung out of its business.
TE is the world's largest connector company and possesses a significant presence in almost every major market, including the automotive, industrial, computer, and datacom markets.
Connector manufacturing generates strong free cash flow throughout the industry cycle, and TE is well positioned, as its business model has high variable costs and low capital requirements. Read more 

Bears Say

TE's customers are large, global companies that possess strong bargaining power, which has led to pricing declines throughout the past decade.
TE's products and cost structure are not unique; thus, the firm's industry-leading market share has not led to industry-leading profitability.
TE is susceptible to downturns in the global auto and telco markets, both of which represent more than 25% of its total sales. Read more 

Management

Tom Lynch was named CEO of TE Connectivity in 2006 after serving as president of Tyco Engineered Products since 2004. Before Tyco, he was CEO of the personal communications division of Motorola. The remainder of the management team has deep experience   Read more 

Profile

TE Connectivity (formerly Tyco Electronics) is the largest connector manufacturer in the world and boasts a product portfolio of more than 500,000 items. The company operates   Read more 

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