TE Connectivity Files Automatic Mixed Securities Shelf to Expand Investment Opportunities
December 23, 2023
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TE ($NYSE:TEL) Connectivity, a global technology and manufacturing company, has filed an automatic mixed securities shelf registration with the U.S. Securities and Exchange Commission. This registration will allow TE Connectivity to offer up to $1 billion of debt securities, preferred stock, common stock, warrants, units, and depositary shares from time to time. This move allows the company to expand its investment opportunity portfolio, giving them the ability to raise capital when needed. TE Connectivity is a world leader in connectivity and sensor solutions that are used in an array of industries and applications. Their products are used across a wide variety of sectors including automotive, aerospace, data communications and industrial.
TE Connectivity’s mission is to create a safer, sustainable, productive and connected future for customers. The company’s stock is traded on the New York Stock Exchange under the ticker symbol “TEL.” This move by TE Connectivity to file an automatic mixed securities shelf registration allows them to tap into different markets and acquire capital from different sources. It is also a sign of confidence in their own stock as they are now giving investors the opportunity to purchase multiple types of securities from the company.
Stock Price
On Thursday, TE CONNECTIVITY, a global technology leader in connectivity and sensors, announced the filing of an automatic mixed securities shelf with the United States Securities and Exchange Commission. This expanded offering will open up a variety of investment opportunities for investors. TE CONNECTIVITY stock opened at $139.5 and closed at $139.9, up by 1.0% from the previous closing price of 138.5. This increase could be reflective of the market’s reaction to the announcement of the automatic mixed securities shelf.
The filing of the shelf will provide TE CONNECTIVITY with greater flexibility to access capital markets to fund their future growth plans, while also allowing investors to take advantage of the potential long-term benefits associated with investing in the company. The company has not yet made any decisions regarding which of the securities may be offered or when they may be offered. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Te Connectivity. More…
| Total Revenues | Net Income | Net Margin |
| 16.03k | 1.91k | 13.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Te Connectivity. More…
| Operations | Investing | Financing |
| 3.13k | -768 | -1.79k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Te Connectivity. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 21.71k | 10.06k | 37.02 |
Key Ratios Snapshot
Some of the financial key ratios for Te Connectivity are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.6% | 15.7% | 14.6% |
| FCF Margin | ROE | ROA |
| 15.0% | 12.8% | 6.8% |
Analysis
As GoodWhale, we recently conducted an analysis of TE CONNECTIVITY‘s wellbeing. We were pleased to find that TE CONNECTIVITY has a high health score of 10/10, showing that it has strong cashflows and debt and is capable of sustaining future operations in times of crisis. Further to this, we classified TE CONNECTIVITY as a ‘rhino’, which is a type of company that we believe has achieved moderate revenue or earnings growth. Based on this classification, we can assume that TE CONNECTIVITY is strong in dividend and profitability, medium in asset growth, and weak in revenue growth. Given these characteristics, TE CONNECTIVITY will likely be of interest to value investors, who are often attracted to companies that have strong balance sheets and good dividend payouts. Long-term investors may also be interested in this company given its attractive dividend yield and debt-free status. More…
Peers
The company’s products are used in a variety of industries, including automotive, aerospace, telecommunications, industrial, and consumer electronics. TE Connectivity‘s main competitors are Amphenol Corp, Littelfuse Inc, Rexel SA, and other smaller companies. The company has a strong market position and offers a wide range of products.
However, its competitors are also well-established and offer similar products.
– Amphenol Corp ($NYSE:APH)
Amphenol Corp is a worldwide electronics manufacturer. They have a market cap of 43.95B as of 2022 and a Return on Equity of 23.34%. The company designs, manufactures, and markets electrical, electronic, and fiber optic connectors, interconnect systems, and coaxial and high-speed specialty cable.
– Littelfuse Inc ($NASDAQ:LFUS)
Littelfuse is a global manufacturer of circuit protection devices. Its products are used in a variety of industries, including automotive, consumer electronics, industrial, and telecommunications. The company has a market cap of 5.37B and a ROE of 13.41%.
– Rexel SA ($OTCPK:RXEEY)
As of 2022, Rexel SA has a market cap of 5.33B and a Return on Equity of 14.71%. The company is a leading distributor of electrical supplies and equipment. It operates in over 30 countries and serves a wide range of customers, from large corporates to small businesses. Rexel is committed to providing quality products and services, and to being a responsible corporate citizen.
Summary
TE Connectivity is a global leader in connectivity and sensors, providing a broad portfolio of reliable and innovative products for a variety of industrial, manufacturing, and medical applications. Its solutions range from connectors and interconnect systems to active and passive electronic components, and even embedded solutions. With an extensive presence in the aerospace, automotive, IT, healthcare, and communications industries, TE Connectivity is well-positioned to benefit from the ongoing digital transformation. From a financial perspective, TE Connectivity has consistently reported solid revenue growth in recent years, supported by innovation-driven product introductions and investments in R&D. The company’s balance sheet is robust, with healthy operating margins and an ample dividend yield.
Furthermore, investors can benefit from TE Connectivity’s strong cash flow generation, which supports strategic acquisitions and share repurchases. Overall, TE Connectivity has demonstrated sound financial performance and offers an attractive outlook for long-term investors.
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