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TE ConnectivityFRA:BZ4 89 Return-on-Tangible-Equity is 94.30% as of Mar. 2026, which is 51% above its 10-year median of 62.35. GuruFocus rates FRA:BZ4 with a GF Score™ of 89/100 and a GF Value™ of €162.86 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,385 Hardware companies, TE Connectivity ranks better than 96.73% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. TE Connectivity's annualized net income for the quarter that ended in Mar. 2026 was €2,958 Mil. TE Connectivity's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €3,137 Mil. Therefore, TE Connectivity's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 94.30%.
The historical rank and industry rank for TE Connectivity's Return-on-Tangible-Equity or its related term are showing as below:
FRA:BZ4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.31 Med: 62.35 Max: 99.79
Current: 78.97
During the past 13 years, TE Connectivity's highest Return-on-Tangible-Equity was 99.79%. The lowest was -8.31%. And the median was 62.35%.
FRA:BZ4's Return-on-Tangible-Equity is ranked better than 96.73% of 2385
companies
in the Hardware industry
Industry Median: 5.32
vs FRA:BZ4: 78.97
TE Connectivity (FRA:BZ4) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
TE Connectivity Return-on-Tangible-Equity Related Terms
TE Connectivity Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for TE Connectivity's Return-on-Tangible-Equity 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.
FRA:BZ4 vs FLEX, JBL, TTMI: Return-on-Tangible-Equity Comparison
For the Electronic Components subindustry, TE Connectivity's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, TE Connectivity's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where TE Connectivity's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 94.30% mean?
TE Connectivity (FRA:BZ4) has a Return-on-Tangible-Equity of 94.30% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on TE Connectivity and its competitors. This is 51% above median its historical median of 62.35. According to the industry distribution chart, TE Connectivity ranks #78 out of 2385 companies in the Hardware industry, placing it in the top 3.3%.
Is TE Connectivity's Return-on-Tangible-Equity too high?
TE Connectivity's current Return-on-Tangible-Equity of 94.30% is 51% above median its 10-year median of 62.35. The Hardware industry median Return-on-Tangible-Equity is 5.32. TE Connectivity's value of 94.30% is 1672.6% above this industry median. Based on the distribution chart, TE Connectivity ranks #78 out of 2385 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, TE Connectivity has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TE Connectivity's Return-on-Tangible-Equity compare to FLEX and JBL?
According to the Hardware industry distribution chart, TE Connectivity ranks #78 out of 2385 companies for Return-on-Tangible-Equity. This places TE Connectivity in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.32. TE Connectivity's value of 94.30% is 1672.6% above this benchmark. While the company's 10-year median is 62.35 vs. the industry median of 5.32, TE Connectivity has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.32, based on 2,385 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TE Connectivity's current Return-on-Tangible-Equity of 94.30% is 1672.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on TE Connectivity and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TE Connectivity's current Return-on-Tangible-Equity is 94.30%, which is 51% above median its own 10-year median of 62.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TE Connectivity stock overvalued right now?
Based on GuruFocus' analysis, TE Connectivity (FRA:BZ4) is currently considered Fairly Valued. The stock's GF Value™ is €162.86, compared to a current price of €173.00 — trading 6.2% above its estimated fair value. The current Return-on-Tangible-Equity is 94.30%, which is 51% above median its 10-year median of 62.35 and 1672.6% above the Hardware industry median of 5.32. TE Connectivity's overall GF Score™ is 89/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For TE Connectivity (FRA:BZ4), the current Return-on-Tangible-Equity is 94.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TE Connectivity (FRA:BZ4) Overvalued in 2026?
Based on GuruFocus' analysis, TE Connectivity stock appears to be overvalued.
The current stock price of €173.00 is trading 6.2% above its estimated GF Value™ of €162.86.
GuruFocus considers TE Connectivity to be Fairly Valued.
Key valuation signals for FRA:BZ4:
Return-on-Tangible-Equity: 94.30% (51% above median its 10-year median of 62.35)
GF Value™: €162.86 vs. price of €173.00 (6.2% above fair value)
Industry Position: 1672.6% above the Hardware median (#78 of 2385)
No single metric tells the full story. See the FRA:BZ4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
89GF Score
Get the complete analysis for FRA:BZ4
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