TEXAS INSTRUMENTS INC (1TXN.MI) Stock Fundamental Analysis
BIT:1TXN - US8825081040 - Common Stock
175.38 EUR
+9.78 (+5.91%)
Taking everything into account, 1TXN scores 5 out of 10 in our fundamental rating. 1TXN was compared to 60 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1TXN has a great profitability rating, 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.
Each year in the past 5 years 1TXN has been profitable.
1TXN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1TXN's Return On Assets of 14.36% is fine compared to the rest of the industry. 1TXN outperforms 80.00% of its industry peers.
The Return On Equity of 1TXN (30.57%) is better than 80.00% of its industry peers.
1TXN's Return On Invested Capital of 15.76% is fine compared to the rest of the industry. 1TXN outperforms 76.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1TXN is significantly above the industry average of 13.83%.
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
1TXN has a Profit Margin of 30.07%. This is amongst the best in the industry. 1TXN outperforms 93.33% of its industry peers.
In the last couple of years the Profit Margin of 1TXN has declined.
1TXN's Operating Margin of 34.89% is amongst the best of the industry. 1TXN outperforms 85.00% of its industry peers.
In the last couple of years the Operating Margin of 1TXN has declined.
The Gross Margin of 1TXN (58.03%) is better than 78.33% of its industry peers.
In the last couple of years the Gross Margin of 1TXN has declined.
| 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.
The number of shares outstanding for 1TXN has been increased compared to 1 year ago.
Compared to 5 years ago, 1TXN has less shares outstanding
The debt/assets ratio for 1TXN is higher compared to a year ago.
2.2 Solvency
1TXN has an Altman-Z score of 9.55. This indicates that 1TXN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 9.55, 1TXN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 9.34, 1TXN is doing worse than 66.67% of the companies in the same industry.
1TXN has a Debt/Equity ratio of 0.86. This is a neutral value indicating 1TXN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, 1TXN is doing worse than 81.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.34 | ||
| Altman-Z | 9.55 |
ROIC/WACC1.4
WACC11.25%
2.3 Liquidity
A Current Ratio of 5.81 indicates that 1TXN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.81, 1TXN belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
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.
The Quick ratio of 1TXN (3.88) is better than 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%.
Looking at the last year, 1TXN shows a small growth in Revenue. The Revenue has grown by 3.62% in the last year.
1TXN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.69% yearly.
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.
Based on estimates for the next years, 1TXN will show a quite strong growth in Revenue. The Revenue will grow by 10.81% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 37.39, the valuation of 1TXN can be described as expensive.
1TXN's Price/Earnings ratio is a bit more expensive when compared to the industry. 1TXN is more expensive than 63.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. 1TXN is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.28, 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 68.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1TXN to the average of the S&P500 Index (22.48), we can say 1TXN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.39 | ||
| Fwd PE | 30.28 |
4.2 Price Multiples
1TXN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1TXN is more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1TXN is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.62 | ||
| EV/EBITDA | 25.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1TXN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1TXN 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)4.51
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 1.29. 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 2.32.
| 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
97.71% of the earnings are spent on dividend by 1TXN. This is not a sustainable payout ratio.
The dividend of 1TXN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP97.71%
EPS Next 2Y14.05%
EPS Next 3Y16.07%
BIT:1TXN (8/25/2025, 7:00:00 PM)
175.38
+9.78 (+5.91%)
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 Cap159.44B
Analysts68.18
Price Target176.1 (0.41%)
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 | 37.39 | ||
| Fwd PE | 30.28 | ||
| P/S | 11.14 | ||
| P/FCF | 123.62 | ||
| P/OCF | 28.86 | ||
| P/B | 11.33 | ||
| P/tB | 15.76 | ||
| EV/EBITDA | 25.35 |
EPS(TTM)4.69
EY2.67%
EPS(NY)5.79
Fwd EY3.3%
FCF(TTM)1.42
FCFY0.81%
OCF(TTM)6.08
OCFY3.47%
SpS15.74
BVpS15.48
TBVpS11.13
PEG (NY)4.51
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 | 9.55 |
F-Score6
WACC11.25%
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%