TE Connectivity (NYSE:TEL) 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: 6 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 6.

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

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Piotroski F-Score

6.00

5.00

3.00

7.00

6.00

TE Connectivity Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Piotroski F-Score																7.00	6.00	6.00	6.00	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.

Annual Data Quarterly Data

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 in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.

How is the Piotroski F-Score calculated?

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Net Income was 594 + 708 + 397 + 433 = $2,132 Mil.
Cash Flow from Operations was 579 + 944 + 581 + 634 = $2,738 Mil.
Revenue was 4097 + 4359 + 3841 + 4160 = $16,457 Mil.
Gross Profit was 1328 + 1349 + 1187 + 1284 = $5,148 Mil.
Average Total Assets from the begining of this year (Mar22)
to the end of this year (Mar23) was
(21451 + 21348 + 20782 + 21353 + 21490) / 5 = $21284.8 Mil.
Total Assets at the begining of this year (Mar22) was $21,451 Mil.
Long-Term Debt & Capital Lease Obligation was $3,916 Mil.
Total Current Assets was $7,439 Mil.
Total Current Liabilities was $4,393 Mil.

Net Income was 580 + 794 + 566 + 560 = $2,500 Mil.

Revenue was 3845 + 3818 + 3818 + 4007 = $15,488 Mil.
Gross Profit was 1268 + 1263 + 1230 + 1337 = $5,098 Mil.
Average Total Assets from the begining of last year (Mar21)
to the end of last year (Mar22) was
(20967 + 21058 + 21462 + 21409 + 21451) / 5 = $21269.4 Mil.
Total Assets at the begining of last year (Mar21) was $20,967 Mil.
Long-Term Debt & Capital Lease Obligation was $3,441 Mil.
Total Current Assets was $7,417 Mil.
Total Current Liabilities was $5,046 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 2,132. ==> 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 2,738. ==> 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 (Mar22)
	=	2132	/	21451
	=	0.09938931

ROA (Last Year)	=	Net Income	/	Total Assets (Mar21)
	=	2500	/	20967
	=	0.11923499

TE Connectivity's return on assets of this year was 0.09938931. TE Connectivity's return on assets of last year was 0.11923499. ==> Last year is higher ==> Score 0.

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 2,132. TE Connectivity's current Cash Flow from Operations (TTM) was 2,738. ==> 2,738 > 2,132 ==> CFROA > ROA ==> Score 1.

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: Mar23)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Mar22 to Mar23
	=	3916	/	21284.8
	=	0.18398106

Gearing (Last Year: Mar22)	=	Long-Term Debt & Capital Lease Obligation	/	Average Total Assets from Mar21 to Mar22
	=	3441	/	21269.4
	=	0.16178171

TE Connectivity's gearing of this year was 0.18398106. TE Connectivity's gearing of last year was 0.16178171. ==> Last year is lower than this year ==> Score 0.

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: Mar23)	=	Total Current Assets	/	Total Current Liabilities
	=	7439	/	4393
	=	1.69337583

Current Ratio (Last Year: Mar22)	=	Total Current Assets	/	Total Current Liabilities
	=	7417	/	5046
	=	1.46987713

TE Connectivity's current ratio of this year was 1.69337583. TE Connectivity's current ratio of last year was 1.46987713. ==> This year's current ratio is higher. ==> Score 1.

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 318. TE Connectivity's number of shares in issue last year was 327. ==> 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
	=	5148	/	16457
	=	0.31281522

Gross Margin (Last Year: TTM)	=	Gross Profit	/	Revenue
	=	5098	/	15488
	=	0.32915806

TE Connectivity's gross margin of this year was 0.31281522. TE Connectivity's gross margin of last year was 0.32915806. ==> Last year's gross margin is higher ==> Score 0.

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 (Mar22)
	=	16457	/	21451
	=	0.76719034

Asset Turnover (Last Year)	=	Revenue	/	Total Assets at the Beginning of Last Year (Mar21)
	=	15488	/	20967
	=	0.7386846

TE Connectivity's asset turnover of this year was 0.76719034. TE Connectivity's asset turnover of last year was 0.7386846. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score

Que. 1

Que. 2

Que. 3

Que. 4

Que. 5

Que. 6

Que. 7

Que. 8

Que. 9

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

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TE Connectivity (NYSE:TEL) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

T1EL34:Brazil

Address

Muhlenstrasse 26, Schaffhausen, CHE, CH-8200

Website

https://www.te.com

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

Syaru Shirley Lin	director
Aaron Kyle Stucki	officer: Pres. Communications Solutions	1050 WESTLAKES DRIVE, BERWYN PA 19312
Lynn A Dugle	director	4803 STONECROFT BOULEVARD, CHANTILLY VA 20151
Dawn C Willoughby	director	1221 BROADWAY, OAKLAND CA 94612
Kevin N Rock	officer: President, Industrial Solution	1050 WESTLAKES DRIVE, BERWYN PA 19312
David M Kerko	director	C/O KKR, 9 WEST 57TH STREET, 41ST FLOOR, NEW YORK NY 10019
Shadrak W Kroeger	officer: Pres., Communications Solution	1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar	director	ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Heath A Mitts	officer: EVP & Chief Financial Officer	1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Tim Murphy	officer: SVP & CHRO	1050 WESTLAKES DRIVE, BERWYN PA 19312
Mark Trudeau	director	COVIDIEN PLC, 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Carol Anthony Davidson	director
Laura Wright	director	2702 LOVE FIELD DRIVE, P.O. BOX 36611, DALLAS TX 75235-1611
John S Jenkins	officer: EVP & General Counsel	1050 WESTLAKES DRIVE, BERWYN PA 19312
Bradley Alan Gambill	officer: SVP, Strategy & Business Dev.	1050 WESTLAKES DRIVE, BERWYN PA 19312