$TE Connectivity (TEL.US)$Excluded from the analysis two yea...

A swiss franc company listed in 2007, mainly focused on traffic solutions, industrial solutions, and communication solutions, with primary markets in switzerland, usa, and china, currently priced at 141.

Revenue has only significantly increased in 2021 and 2022 over the past 5 years, shrinking in the other 3 years, with an average growth rate of 2.8%. Operating profit shows a similar pattern with a 5-year average growth rate of 1.6%. Net income has fluctuated significantly due to impairment and restructuring costs, resulting in an overall decline over the 5 years.

In Q1 2024, revenue shrank by 0.3%, operating profit increased by 16.9% due to a rise in gross margin, and net income significantly increased to 1.8 billion due to tax refunds, with an estimated annual total of around 3.3 billion.

Currently, the price-earnings ratio is 23.4, with a TTM price-earnings ratio of 13.4. If the annual net income reaches 3.3 billion, the corresponding price-earnings ratio would be 13.2. However, the 1.1 billion tax refund should be spread over previous years. If it's 0.22 billion per year, the price-earnings ratio would be adjusted to 20.5, which is still not very attractive for stocks without a clear trend of net income growth.