TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
FRA:TII - US8825081040 - Common Stock
158.12 EUR
+1.44 (+0.92%)
We assign a fundamental rating of 5 out of 10 to TII. TII was compared to 53 industry peers in the Semiconductors & Semiconductor Equipment industry. While TII has a great profitability rating, there are some minor concerns on its financial health. TII is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TII had positive earnings in the past year.
In the past year TII had a positive cash flow from operations.
Each year in the past 5 years TII has been profitable.
In the past 5 years TII always reported a positive cash flow from operatings.
1.2 Ratios
TII has a Return On Assets of 14.36%. This is in the better half of the industry: TII outperforms 77.36% of its industry peers.
With a decent Return On Equity value of 30.57%, TII is doing good in the industry, outperforming 77.36% of the companies in the same industry.
The Return On Invested Capital of TII (15.76%) is better than 73.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TII is significantly above the industry average of 15.12%.
The last Return On Invested Capital (15.76%) for TII is well below the 3 year average (24.88%), which needs to be investigated, but indicates that TII 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
Looking at the Profit Margin, with a value of 30.07%, TII belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
In the last couple of years the Profit Margin of TII has declined.
TII's Operating Margin of 34.89% is amongst the best of the industry. TII outperforms 84.91% of its industry peers.
TII's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 58.03%, TII belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
TII'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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TII is creating value.
TII has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TII has less shares outstanding
The debt/assets ratio for TII is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.00 indicates that TII is not in any danger for bankruptcy at the moment.
TII's Altman-Z score of 9.00 is fine compared to the rest of the industry. TII outperforms 71.70% of its industry peers.
TII has a debt to FCF ratio of 9.34. This is a negative value and a sign of low solvency as TII would need 9.34 years to pay back of all of its debts.
The Debt to FCF ratio of TII (9.34) is worse than 66.04% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that TII is somewhat dependend on debt financing.
The Debt to Equity ratio of TII (0.86) is worse than 83.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.34 | ||
| Altman-Z | 9 |
ROIC/WACC1.4
WACC11.25%
2.3 Liquidity
A Current Ratio of 5.81 indicates that TII has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.81, TII belongs to the top of the industry, outperforming 94.34% of the companies in the same industry.
TII has a Quick Ratio of 3.88. This indicates that TII is financially healthy and has no problem in meeting its short term obligations.
TII has a better Quick ratio (3.88) than 92.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.81 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
TII 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, TII shows a small growth in Revenue. The Revenue has grown by 3.62% in the last year.
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
TII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.92% yearly.
Based on estimates for the next years, TII will show a quite strong growth in Revenue. The Revenue will grow by 10.29% on average per year.
EPS Next Y9.16%
EPS Next 2Y14.04%
EPS Next 3Y15.65%
EPS Next 5Y16.92%
Revenue Next Year14%
Revenue Next 2Y12.12%
Revenue Next 3Y11.27%
Revenue Next 5Y10.29%
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 34.00, the valuation of TII can be described as expensive.
62.26% of the companies in the same industry are cheaper than TII, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.07, TII is valued a bit more expensive.
The Price/Forward Earnings ratio is 27.51, which means the current valuation is very expensive for TII.
Based on the Price/Forward Earnings ratio, TII is valued a bit more expensive than 67.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TII to the average of the S&P500 Index (22.59), we can say TII is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34 | ||
| Fwd PE | 27.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TII indicates a slightly more expensive valuation: TII is more expensive than 67.92% of the companies listed in the same industry.
TII's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TII is more expensive than 66.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 112.32 | ||
| EV/EBITDA | 23.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TII does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TII may justify a higher PE ratio.
A more expensive valuation may be justified as TII's earnings are expected to grow with 15.65% in the coming years.
PEG (NY)3.71
PEG (5Y)N/A
EPS Next 2Y14.04%
EPS Next 3Y15.65%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
TII's Dividend Yield is rather good when compared to the industry average which is at 1.40. TII pays more dividend than 94.34% of the companies in the same industry.
TII's Dividend Yield is comparable with the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of TII is nicely growing with an annual growth rate of 10.46%!
Dividend Growth(5Y)10.46%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
97.71% of the earnings are spent on dividend by TII. This is not a sustainable payout ratio.
The dividend of TII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP97.71%
EPS Next 2Y14.04%
EPS Next 3Y15.65%
FRA:TII (9/9/2025, 7:00:00 PM)
158.12
+1.44 (+0.92%)
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 Cap143.75B
Analysts68.18
Price Target173.57 (9.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend4.5
Dividend Growth(5Y)10.46%
DP97.71%
Div Incr Years5
Div Non Decr Years5
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)2.5%
PT rev (3m)9.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0.8%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.76%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34 | ||
| Fwd PE | 27.51 | ||
| P/S | 10.12 | ||
| P/FCF | 112.32 | ||
| P/OCF | 26.22 | ||
| P/B | 10.29 | ||
| P/tB | 14.32 | ||
| EV/EBITDA | 23.11 |
EPS(TTM)4.65
EY2.94%
EPS(NY)5.75
Fwd EY3.63%
FCF(TTM)1.41
FCFY0.89%
OCF(TTM)6.03
OCFY3.81%
SpS15.62
BVpS15.36
TBVpS11.05
PEG (NY)3.71
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 |
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 Y9.16%
EPS Next 2Y14.04%
EPS Next 3Y15.65%
EPS Next 5Y16.92%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%16.38%
Revenue Next Year14%
Revenue Next 2Y12.12%
Revenue Next 3Y11.27%
Revenue Next 5Y10.29%
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 5Y22.04%
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%