Business Analysis of TE Connectivity

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of TE Connectivity

TE CONNECTIVITY

Business Overview

TE Connectivity Ltd., together with its subsidiaries, engages in the design, manufacture, and sale of connectivity and sensors solutions in the Americas, Europe, the Middle East, Africa, and the AsiaPacific. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment primarily provides terminals and connector systems and components, sensors, and relays, as well as application tooling and wires, and heat shrink tubing for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; heat shrink tubing; relays; and wires and cables for industrial equipment, aerospace, defense, oil and gas, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, undersea telecommunication systems, antennas, relays, and heat shrink tubing for the data and devices, subsea communications, and appliances markets. TE Connectivity Ltd. offers its products to approximately 150 countries primarily through direct selling to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was incorporated in 2000 and is based in Schaffhausen, Switzerland.

TE Connectivity

TE Connectivity


R&P Rank: 230
Sector: Technology
Industry:Other
H.Q Location:Not In U.S.A.
Website: www.te.com
Company Address:
RHEINSTRASSE 20, CH-8200 SCHAFFHAUSEN, SWITZERLAND
Ph:41052-633-6661

Business Analysis of TE Connectivity

The Technology Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how TE Connectivity compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by TE Connectivity to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of TE Connectivity with an interactive chart.

  1. Revenue Growth: TE Connectivity reported a revenue growth of 0.0% year-on-year during 2016. Other Industry grew at 0.0% in the same period
  2. COGS share of Revenues: As a percentage of revenue, TE Connectivity spent 67.1% of its total revenues on COGS. Other industry average (COGS share of revenue) in the same period was 80.7%
  3. R&D share of Revenues: As a percentage of revenue, TE Connectivity spent 5.3% of its total revenues on R&D. Other industry average R&D spending in the same period was 2.4%
  4. SG&A share of Revenues: As a percentage of revenue, TE Connectivity spent 12.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Other industry average SG&A spending in the same period was 10.3%
  5. Inventory share of Revenues: As a percentage of revenue, TE Connectivity spent 13.0% of its total revenues on Inventories. Other industry average Inventory spending in the same period was 10.4%
  6. Accounts Payable share of Revenues: As a percentage of revenue, TE Connectivity invested 8.9% of its total revenues on Accounts Payable (A/P) Other industry average Accounts Payable investment in the same period was 13.2%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, TE Connectivity invested 16.7% of its total revenues on Accounts Receivable (A/R). Other industry average Accounts Receivable investment in the same period was 15.6%
  8. PP&E share of Revenues: As a percentage of revenue, TE Connectivity invested 24.9% of its total revenues on Property, Plants, and Equipments (PP&E). Other industry average PPE investment in the same period was 13.4%
  9. Intangibles share of Revenues: As a percentage of revenue, TE Connectivity invested 60.2% of its total revenues on Intangibles. Other industry average Intangibles investment in the same period was 22.4%
  10. Net Margins: TE Connectivity Net Margins in the year 2016 were 16.4%. Other industry average Net Margins in the same period were 4.6%

Sector and Industry Association of TE Connectivity

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

TE Connectivity is associated with Technology Sector and Technology-Other Industry.

Technology sector is comprised of the following industries: Computers Systems and Peripherals; Software; Semiconductor; IT Consulting and Outsourcing Services; Networking Equipment and Services; Internet; Other. The definitions for each of the industries is as follows:

  • Computers Systems and Peripherals industry includes companies primarily engaged in manufacturing of personal computers, servers, mainframes, workstations, and other computer accessories and peripherals such as storage drives, mice, keyboards and printers. It also includes manufacturers of mobile phones and tablets.
  • Software industry includes businesses providing software products such as operating systems, productivity suites, enterprise software, data and analysis software, advertising and marketing software, engineering and manufacturing software, networking software, and IT management software. It also includes companies providing industry-specific software focused on different sectors such as Financials, Automotive, Telecom, Utilities, Travel, Real Estate, Media, and Publishing.
  • Semiconductor industry includes companies primarily engaged in manufacturing and distribution of semiconductor products such as microprocessors, chipsets, motherboards, flash memory, and wired and wireless connectivity products. It also includes companies that provide semiconductor equipment and services to the semiconductor industry.
  • IT Consulting and Outsourcing Services industry includes companies primarily engaged in providing information technology consulting and outsourcing services to other businesses. The services include IT consulting, systems integration, application development and management, IT infrastructure management, and network operations management.
  • Networking Equipment and Services industry includes companies primarily engaged in manufacturing and distribution of networking and communications equipment for transporting data, voice, and video traffic across intranets, extranets, and the Internet. The key products include routers and switches for local and wide-area networks, cable modems, teleconferencing equipment, and wireless access points.
  • Internet industry includes Internet-based businesses providing products and services such as search engines, social networking, web hosting, email, domain name registration, and eCommerce. It also includes industry information/services portals focused on different sectors such as Financials, Automotive, Travel, Health, Real Estate, Media, and Publishing.
  • Other industry includes companies providing products such as photocopiers, fax machines, point of sale machines, audio/video technologies, and video games. It also includes technology companies that are not part of other six technology industries.

Industry Ranking of TE Connectivity

With $12.2 billion revenues, TE Connectivity ranked number 8 of all the companies in the US Technology-Other industry. There were a total of 44 public companies in the US Technology-Other industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Technology-Other industry by revenues during 2016 were:

  1. Tech Data ($26.4 billion)
  2. Avnet ($26.2 billion)
  3. Flex ($24.4 billion)
  4. Arrow Electronics ($23.8 billion)
  5. Jabil Circuit ($18.4 billion)
  6. SYNNEX ($14.1 billion)
  7. CDW ($14 billion)
  8. TE Connectivity ($12.2 billion)
  9. Xerox ($10.8 billion)
  10. Corning ($9.4 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of TE Connectivityand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of te-connectivity

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SYNNEX (SNX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

SYNNEX CORP with $14 billion revenues in the year 2016 was the number 6 Other company. Read this report to know the top competitors of SYNNEX and identify growth and cost optimization opportunities of SYNNEX

CDW (CDW) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

CDW Corp with $14 billion revenues in the year 2016 was the number 7 Other company. Read this report to know the top competitors of CDW and identify growth and cost optimization opportunities of CDW

Xerox (XRX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Xerox Corp with $11 billion revenues in the year 2016 was the number 9 Other company. Read this report to know the top competitors of Xerox and identify growth and cost optimization opportunities of Xerox

Corning (GLW) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Corning Inc with $9 billion revenues in the year 2016 was the number 10 Other company. Read this report to know the top competitors of Corning and identify growth and cost optimization opportunities of Corning

Activision Blizzard (ATVI) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Activision Blizzard, Inc. with $7 billion revenues in the year 2016 was the number 11 Other company. Read this report to know the top competitors of Activision Blizzard and identify growth and cost optimization opportunities of Activision Blizzard

Revenues Analysis

TE Connectivity (TEL) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of TE Connectivity Ltd. (TEL) from 2012 to 2016. TE Connectivity generated a total of $12.2 billion revenues during 2016. TE Connectivity reported a revenue growth of 0% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

TE Connectivity (TEL) Revenues And Revenue Growth From 2005 To 2016

This report provides the last twelve years revenues and revenue growth of TE Connectivity Ltd. (TEL) from 2005 to 2016. TE Connectivity generated a total of $12.2 billion revenues during 2016. TE Connectivity reported a revenue growth of 0% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

TE Connectivity (TEL) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of TE Connectivity Ltd. (TEL) revenue growth with Technology-Other industry growth during the last five years from 2012 to 2016. TE Connectivity reported a revenue growth of 0% year-over-year during 2016. The Technology-Other industry growth was 0% year-over-year during 2016. TE Connectivity growth was faster than the industry during 2016.

Profit Analysis