Gross Margin % is calculated as gross profit divided by its revenue. TE Connectivity's Gross Profit for the
three
months ended in Jun. 2023 was $1,299 Mil. TE Connectivity's Revenue for the
three
months ended in Jun. 2023 was $3,998 Mil. Therefore, TE Connectivity's Gross Margin % for the quarter that ended in Jun. 2023 was 32.49%.
Warning Sign:
TE Connectivity Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for TE Connectivity's Gross Margin % or its related term are showing as below:
TEL'
s Gross Margin % Range Over the Past 10 Years
Min: 30.69 Med: 32.96 Max: 34.33
Current: 31.29
During the past 13 years, the highestGross Margin % of TE Connectivity was 34.33%. The lowest was 30.69%. And the median was 32.96%.
TEL's Gross Margin % is ranked better than 64.77% of 2430
companies
in the Hardware industry
Industry Median: 23.96
vs TEL: 31.29
TE Connectivity had a gross margin of 32.49% for the quarter that ended in Jun. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for TE Connectivity was -1.40% per year.
TE Connectivity Gross Margin % Historical Data
The historical data trend for TE Connectivity's Gross Margin % 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
Gross Margin %
33.92
32.67
30.69
32.75
32.21
TE Connectivity Quarterly Data
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Gross Margin %
32.41
30.95
30.90
30.87
32.49
Competitive Comparison
For the Electronic Components subindustry, TE Connectivity's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution
For the Hardware industry and Technology sector, TE Connectivity's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TE Connectivity's Gross Margin % falls in comparison to its industry or sector. The grey bar indicates the Gross Margin %'s extreme value range as defined by GuruFocus.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
TE Connectivity (NYSE:TEL) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
TE Connectivity had a gross margin of 32.49% for the quarter that ended in Jun. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
TE Connectivity Gross Margin % Related Terms
Thank you for viewing the detailed overview of TE Connectivity's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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 has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
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