TE Connectivity Rated High by Shareholder Yield Strategy

TE Connectivity plc achieves a 65% rating using the Shareholder Yield Investor model. While it excels in valuation and quality, it faces weaknesses in shareholder yield, possibly impacting stock price stability.

Date: 18-01-2025

AI Rating: 5

Investment Overview

TE Connectivity PLC (TEL) has been analyzed using the Shareholder Yield Investor model, where it received a rating of 65%. This model evaluates companies that return cash to shareholders through dividends, buybacks, and debt paydown, suggesting a focus on shareholder value.

The stock has passed the following criteria: Net Payout Yield, Quality and Debt, Valuation, and Relative Strength. These positive indicators suggest a solid foundation in terms of financial health and market standing. However, it notably fails the Universe and Shareholder Yield criteria.

The failure in Shareholder Yield is particularly important because it indicates that while the company may have sound fundamentals, it is not adequately returning surplus capital to investors. This could lead to reduced investor confidence and drive the stock price down, negatively affecting demand for TEL shares.

Stocks: TEL