TE Connectivity plc — Earnings Quality Grade F
TEL · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 72 days, change +2 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 8.9%, CFFO 19.0%. Cash follows revenue
Expense Quality
Inventory 7.2% vs COGS 7.6%. Normal
CapEx growth 37.6% is >2x revenue growth 8.9%
SG&A/Gross Profit = 30.7%. Normal
Gross margin 35.2%, change +0.8pp. Stable
Cash Flow Quality
CFFO/NI = 2.25. Profits backed by cash
FCF $3.2B, FCF/NI = 1.74
Accruals ratio = -9.2%. Low accruals
Cash $1.3B covers only 22% of debt $5.8B
Balance Sheet Health
Goodwill+Intangibles $9.4B = 74% of equity. Over 50%
Debt/EBITDA = 1.4x. Healthy
Other assets 11.2% vs revenue 8.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 34% YoY
Manipulation Score
M-Score = -2.84 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10