TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - FRA:TII - US8825081040 - Common Stock
154.58 EUR
-1.06 (-0.68%)
Taking everything into account, TII scores 6 out of 10 in our fundamental rating. TII was compared to 57 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TII had positive earnings in the past year.
TII had a positive operating cash flow in the past year.
In the past 5 years TII has always been profitable.
TII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TII has a better Return On Assets (14.36%) than 77.19% of its industry peers.
TII has a Return On Equity of 30.57%. This is in the better half of the industry: TII outperforms 78.95% of its industry peers.
With a decent Return On Invested Capital value of 15.76%, TII is doing good in the industry, outperforming 77.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TII is significantly above the industry average of 14.80%.
The 3 year average ROIC (24.88%) for TII is well above the current ROIC(15.76%). The reason for the recent decline needs to be investigated.
| 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
TII's Profit Margin of 30.07% is amongst the best of the industry. TII outperforms 91.23% of its industry peers.
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 85.96% of its industry peers.
TII's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 58.03%, TII is doing good in the industry, outperforming 78.95% 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
TII has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TII has more shares outstanding than it did 1 year ago.
TII has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TII is higher compared to a year ago.
2.2 Solvency
TII has an Altman-Z score of 8.88. This indicates that TII is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.88, TII is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
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 64.91% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that TII is somewhat dependend on debt financing.
TII has a worse Debt to Equity ratio (0.86) than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.34 | ||
| Altman-Z | 8.88 |
ROIC/WACC1.37
WACC11.51%
2.3 Liquidity
A Current Ratio of 5.81 indicates that TII has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.81, TII belongs to the best of the industry, outperforming 98.25% 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 Quick ratio of 3.88. This is amongst the best in the industry. TII outperforms 92.98% 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%.
TII 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
The Earnings Per Share is expected to grow by 16.92% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.29% on average over the next years. This is quite good.
EPS Next Y9.15%
EPS Next 2Y14.07%
EPS Next 3Y15.54%
EPS Next 5Y16.92%
Revenue Next Year13.94%
Revenue Next 2Y12.1%
Revenue Next 3Y11.18%
Revenue Next 5Y10.29%
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
With a Price/Earnings ratio of 33.03, TII can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as TII.
The average S&P500 Price/Earnings ratio is at 27.90. TII is around the same levels.
Based on the Price/Forward Earnings ratio of 26.73, the valuation of TII can be described as expensive.
TII's Price/Forward Earnings is on the same level as the industry average.
TII's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.03 | ||
| Fwd PE | 26.73 |
4.2 Price Multiples
TII's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TII is valued a bit more expensive than the industry average as 63.16% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.19 | ||
| EV/EBITDA | 22.64 |
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.
TII has a very decent profitability rating, which may justify a higher PE ratio.
TII's earnings are expected to grow with 15.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.61
PEG (5Y)N/A
EPS Next 2Y14.07%
EPS Next 3Y15.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, TII has a reasonable but not impressive dividend return.
TII's Dividend Yield is rather good when compared to the industry average which is at 1.21. TII pays more dividend than 96.49% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TII pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
On average, the dividend of TII grows each year by 10.46%, which is quite nice.
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 2Y14.07%
EPS Next 3Y15.54%
FRA:TII (10/7/2025, 4:39:54 PM)
154.58
-1.06 (-0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.03%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap140.53B
Analysts68.18
Price Target174.17 (12.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend4.49
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)0.35%
PT rev (3m)8.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.03 | ||
| Fwd PE | 26.73 | ||
| P/S | 9.84 | ||
| P/FCF | 109.19 | ||
| P/OCF | 25.49 | ||
| P/B | 10.01 | ||
| P/tB | 13.92 | ||
| EV/EBITDA | 22.64 |
EPS(TTM)4.68
EY3.03%
EPS(NY)5.78
Fwd EY3.74%
FCF(TTM)1.42
FCFY0.92%
OCF(TTM)6.06
OCFY3.92%
SpS15.71
BVpS15.45
TBVpS11.11
PEG (NY)3.61
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 | 8.88 |
F-Score6
WACC11.51%
ROIC/WACC1.37
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 Y9.15%
EPS Next 2Y14.07%
EPS Next 3Y15.54%
EPS Next 5Y16.92%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%16.38%
Revenue Next Year13.94%
Revenue Next 2Y12.1%
Revenue Next 3Y11.18%
Revenue Next 5Y10.29%
EBIT growth 1Y-0.29%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year50.61%
EBIT Next 3Y27.29%
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%