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Is this Large Market Cap Stock target price reasonable for TE Connectivity Ltd. (NYSE:TEL)?

The company in question is, TE Connectivity Ltd. (NYSE:TEL) currently with a stock price of 61.03 (-0.13% today). The market cap for TE Connectivity Ltd. is 21784.66, and is in the sector Technology, and Diversified Electronics industry. The target price for TE Connectivity Ltd. is 68.44. Currently TE Connectivity Ltd. is trading with a P/E of 13.82, and a forward P/E of 14.1. Average volume for TE Connectivity Ltd. is 1431.56 and so far today it is 1016100.

Performance in the last year for TE Connectivity Ltd. has been -3.68%. For EPS growth, TE Connectivity Ltd. has seen a growth of -22.20%, and is looking to grow in the next year to 7.80%. More long term stats show that EPS growth has been 20.20% over the last five years and could be 12.18% for the next five years. TE Connectivity Ltd. has seen sales growth quarter over quarter at 0.10%, with EPS growth quarter over quarter at 157.20%. The 20-day simple moving average is -2.34%, with the 200-day simple moving average coming to 1.68%.

Since the IPO date for TE Connectivity Ltd. on the 6/14/2007, TE Connectivity Ltd. has seen performance year to date to be -5.54%. With TE Connectivity Ltd. trading at 61.03, the dividend yield is 2.43%, and the EPS is 4.42.

So could TE Connectivity Ltd., be undervalued? Well as said before P/E is 13.82. The PEG is 1.13, P/S is 1.83 and the P/B is at 2.64. The P/cash is 31.39, with P/free cash flow at 28.74.

TE Connectivity Ltd. ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1. This is with long term debt/equity at 0.45, and total debt/equity at 0.49.

In terms of margins, TE Connectivity Ltd. has a gross margin of 32.80%, an operating margin of 15.10% and a profit margin of 22.00%.Payout ratio for TE Connectivity Ltd. is 19.70%. Return on assets come to 13.90% with return on investment coming to 10.50%.

Insider ownership for TE Connectivity Ltd., is at 0.10% and institutional ownership comes to 95.10%. Outstanding shares are at 356.95. While shares float is 354.75. The float short is currently 1.13%, and short ratio is 2.8.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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