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TE Connectivity Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

TE Connectivity has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for TE Connectivity's Piotroski F-Score or its related term are showing as below:

TEL' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 7   Max: 9
Current: 6

During the past 13 years, the highest Piotroski F-Score of TE Connectivity was 9. The lowest was 3. And the median was 7.


TE Connectivity Piotroski F-Score Historical Data

The historical data trend for TE Connectivity's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

TE Connectivity Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 5.00 3.00 7.00

TE Connectivity Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 9.00 7.00 6.00

Competitive Comparison

For the Electronic Components subindustry, TE Connectivity's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

TE Connectivity Piotroski F-Score Distribution

For the Hardware industry and Technology sector, TE Connectivity's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where TE Connectivity's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 794 + 566 + 560 + 594 = $2,514 Mil.
Cash Flow from Operations was 774 + 532 + 413 + 579 = $2,298 Mil.
Revenue was 3818 + 3818 + 4007 + 4097 = $15,740 Mil.
Gross Profit was 1263 + 1230 + 1337 + 1328 = $5,158 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(21058 + 21462 + 21409 + 21451 + 21348) / 5 = $21345.6 Mil.
Total Assets at the begining of this year (Jun21) was $21,058 Mil.
Long-Term Debt & Capital Lease Obligation was $3,380 Mil.
Total Current Assets was $7,583 Mil.
Total Current Liabilities was $5,058 Mil.
Net Income was 230 + 381 + 506 + 580 = $1,697 Mil.

Revenue was 3261 + 3522 + 3738 + 3845 = $14,366 Mil.
Gross Profit was 969 + 1146 + 1210 + 1268 = $4,593 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(18840 + 19242 + 20266 + 20967 + 21058) / 5 = $20074.6 Mil.
Total Assets at the begining of last year (Jun20) was $18,840 Mil.
Long-Term Debt & Capital Lease Obligation was $3,629 Mil.
Total Current Assets was $7,394 Mil.
Total Current Liabilities was $4,662 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

TE Connectivity's current Net Income (TTM) was 2,514. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

TE Connectivity's current Cash Flow from Operations (TTM) was 2,298. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=2514/21058
=0.11938456

ROA (Last Year)=Net Income/Total Assets (Jun20)
=1697/18840
=0.09007431

TE Connectivity's return on assets of this year was 0.11938456. TE Connectivity's return on assets of last year was 0.09007431. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

TE Connectivity's current Net Income (TTM) was 2,514. TE Connectivity's current Cash Flow from Operations (TTM) was 2,298. ==> 2,298 <= 2,514 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=3380/21345.6
=0.15834645

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=3629/20074.6
=0.18077571

TE Connectivity's gearing of this year was 0.15834645. TE Connectivity's gearing of last year was 0.18077571. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=7583/5058
=1.49920917

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=7394/4662
=1.58601459

TE Connectivity's current ratio of this year was 1.49920917. TE Connectivity's current ratio of last year was 1.58601459. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

TE Connectivity's number of shares in issue this year was 324. TE Connectivity's number of shares in issue last year was 333. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5158/15740
=0.32770013

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4593/14366
=0.31971321

TE Connectivity's gross margin of this year was 0.32770013. TE Connectivity's gross margin of last year was 0.31971321. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=15740/21058
=0.7474594

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=14366/18840
=0.76252654

TE Connectivity's asset turnover of this year was 0.7474594. TE Connectivity's asset turnover of last year was 0.76252654. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+1+0+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

TE Connectivity has an F-score of 6 indicating the company's financial situation is typical for a stable company.

TE Connectivity  (NYSE:TEL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


TE Connectivity Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of TE Connectivity's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


TE Connectivity Business Description

TE Connectivity logo
Traded in Other Exchanges
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE Connectivity has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Lin Syaru Shirley director
Stucki Aaron Kyle officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE BERWYN PA 19312
Dugle Lynn A director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Willoughby Dawn C director 1221 BROADWAY OAKLAND CA 94612
Rock Kevin N officer: President, Industrial Solution 1050 WESTLAKES DRIVE BERWYN PA 19312
Kerko David M director C/O KKR 9 WEST 57TH STREET, 41ST FLOOR NEW YORK NY 10019
Kroeger Shadrak W officer: Pres., Communications Solution 1050 WESTLAKES DRIVE BERWYN PA 19312
Talwalkar Abhijit Y director ONE AMD PLACE PO BOX 3453 SUNNYVALE CA 94088
Mitts Heath A officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT SUITE 200 LAKE FOREST IL 60045
Murphy Tim officer: SVP & CHRO 1050 WESTLAKES DRIVE BERWYN PA 19312
Trudeau Mark director COVIDIEN PLC 15 HAMPSHIRE STREET MANSFIELD MA 02048
Davidson Carol Anthony director
Wright Laura director 2702 LOVE FIELD DRIVE P.O. BOX 36611 DALLAS TX 75235-1611
Jenkins John S officer: EVP & General Counsel 1050 WESTLAKES DRIVE BERWYN PA 19312
Gambill Bradley Alan officer: SVP, Strategy & Business Dev. 1050 WESTLAKES DRIVE BERWYN PA 19312

TE Connectivity Headlines

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