TEXAS INSTRUMENTS INC (1TXN.MI) Stock Fundamental Analysis
BIT:1TXN - Euronext Milan - US8825081040 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1TXN. 1TXN was compared to 60 industry peers in the Semiconductors & Semiconductor Equipment industry. 1TXN has an excellent profitability rating, but there are some minor concerns on its financial health. 1TXN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1TXN had positive earnings in the past year.
In the past year 1TXN had a positive cash flow from operations.
1TXN had positive earnings in each of the past 5 years.
Each year in the past 5 years 1TXN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1TXN (14.36%) is better than 78.33% of its industry peers.
With a decent Return On Equity value of 30.57%, 1TXN is doing good in the industry, outperforming 78.33% of the companies in the same industry.
The Return On Invested Capital of 1TXN (15.76%) is better than 75.00% of its industry peers.
1TXN had an Average Return On Invested Capital over the past 3 years of 24.88%. This is significantly above the industry average of 15.32%.
The last Return On Invested Capital (15.76%) for 1TXN is well below the 3 year average (24.88%), which needs to be investigated, but indicates that 1TXN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.36% | ||
| ROE | 30.57% | ||
| ROIC | 15.76% |
ROA(3y)21.83%
ROA(5y)25.12%
ROE(3y)42.11%
ROE(5y)48.99%
ROIC(3y)24.88%
ROIC(5y)28.23%
1.3 Margins
The Profit Margin of 1TXN (30.07%) is better than 91.67% of its industry peers.
In the last couple of years the Profit Margin of 1TXN has declined.
The Operating Margin of 1TXN (34.89%) is better than 83.33% of its industry peers.
In the last couple of years the Operating Margin of 1TXN has declined.
1TXN has a Gross Margin of 58.03%. This is in the better half of the industry: 1TXN outperforms 78.33% of its industry peers.
1TXN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.89% | ||
| PM (TTM) | 30.07% | ||
| GM | 58.03% |
OM growth 3Y-11.42%
OM growth 5Y-2.89%
PM growth 3Y-10.21%
PM growth 5Y-2.51%
GM growth 3Y-4.84%
GM growth 5Y-1.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1TXN is creating value.
1TXN has more shares outstanding than it did 1 year ago.
1TXN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1TXN has a worse debt to assets ratio.
2.2 Solvency
1TXN has an Altman-Z score of 9.21. This indicates that 1TXN is financially healthy and has little risk of bankruptcy at the moment.
1TXN's Altman-Z score of 9.21 is fine compared to the rest of the industry. 1TXN outperforms 76.67% of its industry peers.
The Debt to FCF ratio of 1TXN is 9.34, which is on the high side as it means it would take 1TXN, 9.34 years of fcf income to pay off all of its debts.
1TXN has a worse Debt to FCF ratio (9.34) than 70.00% of its industry peers.
1TXN has a Debt/Equity ratio of 0.86. This is a neutral value indicating 1TXN is somewhat dependend on debt financing.
1TXN's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. 1TXN is outperformed by 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.34 | ||
| Altman-Z | 9.21 |
ROIC/WACC1.4
WACC11.27%
2.3 Liquidity
A Current Ratio of 5.81 indicates that 1TXN has no problem at all paying its short term obligations.
1TXN has a Current ratio of 5.81. This is amongst the best in the industry. 1TXN outperforms 93.33% of its industry peers.
1TXN has a Quick Ratio of 3.88. This indicates that 1TXN is financially healthy and has no problem in meeting its short term obligations.
1TXN has a Quick ratio of 3.88. This is amongst the best in the industry. 1TXN outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.81 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
1TXN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.21%.
1TXN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.62%.
The Revenue has been growing slightly by 1.69% on average over the past years.
EPS 1Y (TTM)-5.21%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%15.57%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%16.38%
3.2 Future
Based on estimates for the next years, 1TXN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.38% on average per year.
The Revenue is expected to grow by 10.81% on average over the next years. This is quite good.
EPS Next Y8.29%
EPS Next 2Y14.05%
EPS Next 3Y16.07%
EPS Next 5Y17.38%
Revenue Next Year14.06%
Revenue Next 2Y12.29%
Revenue Next 3Y11.54%
Revenue Next 5Y10.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1TXN is valuated quite expensively with a Price/Earnings ratio of 35.31.
61.67% of the companies in the same industry are cheaper than 1TXN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.48, 1TXN is valued a bit more expensive.
With a Price/Forward Earnings ratio of 28.57, 1TXN can be considered very expensive at the moment.
1TXN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1TXN is more expensive than 73.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1TXN to the average of the S&P500 Index (34.04), we can say 1TXN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.31 | ||
| Fwd PE | 28.57 |
4.2 Price Multiples
71.67% of the companies in the same industry are cheaper than 1TXN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1TXN is valued a bit more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 116.68 | ||
| EV/EBITDA | 23.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1TXN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1TXN's earnings are expected to grow with 16.07% in the coming years.
PEG (NY)4.26
PEG (5Y)N/A
EPS Next 2Y14.05%
EPS Next 3Y16.07%
5. Dividend
5.1 Amount
1TXN has a Yearly Dividend Yield of 2.93%.
1TXN's Dividend Yield is rather good when compared to the industry average which is at 1.35. 1TXN pays more dividend than 96.67% of the companies in the same industry.
1TXN's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
The dividend of 1TXN is nicely growing with an annual growth rate of 10.46%!
Dividend Growth(5Y)10.46%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1TXN pays out 97.71% of its income as dividend. This is not a sustainable payout ratio.
1TXN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.71%
EPS Next 2Y14.05%
EPS Next 3Y16.07%
BIT:1TXN (7/29/2025, 7:00:00 PM)
165.6
-18.82 (-10.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.52%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap150.55B
Analysts68.18
Price Target176.1 (6.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend4.52
Dividend Growth(5Y)10.46%
DP97.71%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.93%
Min EPS beat(2)3.14%
Max EPS beat(2)18.72%
EPS beat(4)4
Avg EPS beat(4)8.63%
Min EPS beat(4)3.14%
Max EPS beat(4)18.72%
EPS beat(8)8
Avg EPS beat(8)6.33%
EPS beat(12)12
Avg EPS beat(12)5.55%
EPS beat(16)15
Avg EPS beat(16)6.47%
Revenue beat(2)2
Avg Revenue beat(2)2.05%
Min Revenue beat(2)1.09%
Max Revenue beat(2)3.01%
Revenue beat(4)3
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-0.24%
Max Revenue beat(4)3.01%
Revenue beat(8)4
Avg Revenue beat(8)0.2%
Revenue beat(12)7
Avg Revenue beat(12)0.38%
Revenue beat(16)10
Avg Revenue beat(16)1.6%
PT rev (1m)-6.74%
PT rev (3m)-6.74%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)5.26%
EPS NY rev (3m)5.26%
Revenue NQ rev (1m)2.76%
Revenue NQ rev (3m)2.76%
Revenue NY rev (1m)3.76%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.31 | ||
| Fwd PE | 28.57 | ||
| P/S | 10.52 | ||
| P/FCF | 116.68 | ||
| P/OCF | 27.23 | ||
| P/B | 10.69 | ||
| P/tB | 14.87 | ||
| EV/EBITDA | 23.98 |
EPS(TTM)4.69
EY2.83%
EPS(NY)5.8
Fwd EY3.5%
FCF(TTM)1.42
FCFY0.86%
OCF(TTM)6.08
OCFY3.67%
SpS15.75
BVpS15.49
TBVpS11.14
PEG (NY)4.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.36% | ||
| ROE | 30.57% | ||
| ROCE | 17.93% | ||
| ROIC | 15.76% | ||
| ROICexc | 18.88% | ||
| ROICexgc | 22.75% | ||
| OM | 34.89% | ||
| PM (TTM) | 30.07% | ||
| GM | 58.03% | ||
| FCFM | 9.01% |
ROA(3y)21.83%
ROA(5y)25.12%
ROE(3y)42.11%
ROE(5y)48.99%
ROIC(3y)24.88%
ROIC(5y)28.23%
ROICexc(3y)37.04%
ROICexc(5y)45.04%
ROICexgc(3y)50.11%
ROICexgc(5y)68.14%
ROCE(3y)28.31%
ROCE(5y)32.12%
ROICexcg growth 3Y-37.97%
ROICexcg growth 5Y-22.81%
ROICexc growth 3Y-32.93%
ROICexc growth 5Y-16.48%
OM growth 3Y-11.42%
OM growth 5Y-2.89%
PM growth 3Y-10.21%
PM growth 5Y-2.51%
GM growth 3Y-4.84%
GM growth 5Y-1.81%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.34 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 280.14% | ||
| Cap/Sales | 29.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.95% | ||
| Profit Quality | 29.97% | ||
| Current Ratio | 5.81 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 9.21 |
F-Score6
WACC11.27%
ROIC/WACC1.4
Cap/Depr(3y)333.46%
Cap/Depr(5y)264.77%
Cap/Sales(3y)24.58%
Cap/Sales(5y)18.33%
Profit Quality(3y)40.07%
Profit Quality(5y)60.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.21%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%15.57%
EPS Next Y8.29%
EPS Next 2Y14.05%
EPS Next 3Y16.07%
EPS Next 5Y17.38%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%16.38%
Revenue Next Year14.06%
Revenue Next 2Y12.29%
Revenue Next 3Y11.54%
Revenue Next 5Y10.81%
EBIT growth 1Y-0.29%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year50.98%
EBIT Next 3Y27.48%
EBIT Next 5Y22.18%
FCF growth 1Y-52.77%
FCF growth 3Y-38.03%
FCF growth 5Y-23.72%
OCF growth 1Y-12.6%
OCF growth 3Y-10.31%
OCF growth 5Y-1.02%