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Uncovering Dividend Opportunities with NASDAQ:TXN.

By Mill Chart

Last update: Oct 13, 2023

Discover TEXAS INSTRUMENTS INC (NASDAQ:TXN)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NASDAQ:TXN showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Looking at the Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:TXN was assigned a score of 7 for dividend:

  • TXN's Dividend Yield is rather good when compared to the industry average which is at 2.44. TXN pays more dividend than 94.34% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.76, TXN pays a bit more dividend than the S&P500 average.
  • The dividend of TXN is nicely growing with an annual growth rate of 17.17%!
  • TXN has been paying a dividend for at least 10 years, so it has a reliable track record.
  • TXN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:TXN scores a 7 out of 10:

  • TXN has an Altman-Z score of 10.01. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of TXN (10.01) is better than 81.13% of its industry peers.
  • TXN has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as TXN would need 3.53 years to pay back of all of its debts.
  • A Current Ratio of 5.72 indicates that TXN has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 5.72, TXN is in the better half of the industry, outperforming 79.25% of the companies in the same industry.
  • A Quick Ratio of 4.35 indicates that TXN has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 4.35, TXN is in the better half of the industry, outperforming 78.30% of the companies in the same industry.

Exploring NASDAQ:TXN's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:TXN has earned a 9 out of 10:

  • Looking at the Return On Assets, with a value of 24.73%, TXN belongs to the top of the industry, outperforming 96.23% of the companies in the same industry.
  • TXN's Return On Equity of 47.99% is amongst the best of the industry. TXN outperforms 94.34% of its industry peers.
  • With an excellent Return On Invested Capital value of 27.43%, TXN belongs to the best of the industry, outperforming 95.28% of the companies in the same industry.
  • TXN had an Average Return On Invested Capital over the past 3 years of 34.45%. This is significantly above the industry average of 13.00%.
  • The 3 year average ROIC (34.45%) for TXN is well above the current ROIC(27.43%). The reason for the recent decline needs to be investigated.
  • With an excellent Profit Margin value of 40.65%, TXN belongs to the best of the industry, outperforming 96.23% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TXN has grown nicely.
  • With an excellent Operating Margin value of 47.21%, TXN belongs to the best of the industry, outperforming 96.23% of the companies in the same industry.
  • TXN's Operating Margin has improved in the last couple of years.
  • TXN's Gross Margin of 66.29% is amongst the best of the industry. TXN outperforms 86.79% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of TXN for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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TEXAS INSTRUMENTS INC

NASDAQ:TXN (5/21/2024, 1:31:03 PM)

199.11

-0.09 (-0.05%)

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