$TE Connectivity (TEL.US)$In the analysis two years ago, due...

The Swiss company, which was listed in 2007, mainly manufactures transportation solutions, industrial solutions and communication solutions. The main markets are Switzerland, the United States and China, and the current price is 141.

In the past 5 years, revenue has only increased sharply in 2021 and 2022. The remaining 3 years have shrunk, with an average growth rate of 2.8%. The 5-year average growth rate was 1.6%. Net profit fluctuated sharply due to impairment and restructuring, merger and acquisition expenses, and overall contracted over the past 5 years.

In 2024Q1, revenue shrank by 0.3%, operating profit increased 16.9% due to increased gross margin, and net profit increased sharply to 1.8 billion dollars due to income tax rebates, which is likely to be around 3.3 billion for the whole year.

The current PE ratio is 23.4, and the PE ratio is TTM13.4. If the annual net profit reaches 3.3 billion dollars, the corresponding price-earnings ratio is 13.2. However, the 1.1 billion income tax refund should be spread evenly over the previous year. If it were 220 million per year, and the price-earnings ratio was adjusted to 20.5, it would still not be very attractive for stocks with no clear growth trend in net profit.