TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - FRA:TII - US8825081040 - Common Stock
135.82 EUR
+1.26 (+0.94%)
Overall TII gets a fundamental rating of 6 out of 10. We evaluated TII against 63 industry peers in the Semiconductors & Semiconductor Equipment industry. While TII belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, TII is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TII was profitable.
In the past year TII had a positive cash flow from operations.
TII had positive earnings in each of the past 5 years.
In the past 5 years TII always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.33%, TII belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
TII has a Return On Equity of 30.17%. This is amongst the best in the industry. TII outperforms 80.95% of its industry peers.
TII has a Return On Invested Capital of 16.57%. This is in the better half of the industry: TII outperforms 79.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TII is significantly above the industry average of 14.81%.
The 3 year average ROIC (24.88%) for TII is well above the current ROIC(16.57%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.33% | ||
| ROE | 30.17% | ||
| ROIC | 16.57% |
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 has a better Profit Margin (29.05%) than 84.13% of its industry peers.
TII's Profit Margin has declined in the last couple of years.
TII has a better Operating Margin (34.82%) than 84.13% 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 57.48%, TII is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
In the last couple of years the Gross Margin of TII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.82% | ||
| PM (TTM) | 29.05% | ||
| GM | 57.48% |
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%
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.
Compared to 1 year ago, TII has more shares outstanding
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 8.19. 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 8.19, TII is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
TII has a debt to FCF ratio of 6.75. This is a slightly negative value and a sign of low solvency as TII would need 6.75 years to pay back of all of its debts.
The Debt to FCF ratio of TII (6.75) is worse than 61.90% of its industry peers.
TII has a Debt/Equity ratio of 0.81. This is a neutral value indicating TII is somewhat dependend on debt financing.
TII has a worse Debt to Equity ratio (0.81) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 8.19 |
ROIC/WACC1.57
WACC10.53%
2.3 Liquidity
A Current Ratio of 4.45 indicates that TII has no problem at all paying its short term obligations.
The Current ratio of TII (4.45) is better than 84.13% of its industry peers.
A Quick Ratio of 2.90 indicates that TII has no problem at all paying its short term obligations.
TII has a Quick ratio of 2.90. This is amongst the best in the industry. TII outperforms 84.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 2.9 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.67% over the past year.
TII shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.90%.
TII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.69% yearly.
EPS 1Y (TTM)1.67%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%0.68%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%14.24%
3.2 Future
Based on estimates for the next years, TII will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.13% on average per year.
The Revenue is expected to grow by 10.11% on average over the next years. This is quite good.
EPS Next Y6.67%
EPS Next 2Y9.21%
EPS Next 3Y13.82%
EPS Next 5Y17.13%
Revenue Next Year14.12%
Revenue Next 2Y11.03%
Revenue Next 3Y10.99%
Revenue Next 5Y10.11%
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
The Price/Earnings ratio is 28.78, which means the current valuation is very expensive for TII.
60.32% of the companies in the same industry are more expensive than TII, based on the Price/Earnings ratio.
TII is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.42, which means the current valuation is very expensive for TII.
TII's Price/Forward Earnings ratio is in line with the industry average.
TII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.78 | ||
| Fwd PE | 25.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TII is on the same level as its industry peers.
TII's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TII is more expensive than 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.76 | ||
| EV/EBITDA | 19.02 |
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 excellent 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 13.82% in the coming years.
PEG (NY)4.32
PEG (5Y)N/A
EPS Next 2Y9.21%
EPS Next 3Y13.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, TII has a reasonable but not impressive dividend return.
In the last 3 months the price of TII has falen by -22.57%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.18, TII pays a better dividend. On top of this TII pays more dividend than 100.00% of the companies listed in the same industry.
TII's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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
TII pays out 98.66% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.66%
EPS Next 2Y9.21%
EPS Next 3Y13.82%
FRA:TII (11/19/2025, 7:00:00 PM)
135.82
+1.26 (+0.94%)
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 Cap123.48B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts66.82
Price Target160.92 (18.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend4.52
Dividend Growth(5Y)10.46%
DP98.66%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.76%
Min EPS beat(2)-1.62%
Max EPS beat(2)3.14%
EPS beat(4)3
Avg EPS beat(4)6.78%
Min EPS beat(4)-1.62%
Max EPS beat(4)18.72%
EPS beat(8)7
Avg EPS beat(8)6.02%
EPS beat(12)11
Avg EPS beat(12)5.31%
EPS beat(16)15
Avg EPS beat(16)6.38%
Revenue beat(2)2
Avg Revenue beat(2)1.12%
Min Revenue beat(2)1.09%
Max Revenue beat(2)1.15%
Revenue beat(4)4
Avg Revenue beat(4)1.91%
Min Revenue beat(4)1.09%
Max Revenue beat(4)3.01%
Revenue beat(8)5
Avg Revenue beat(8)0.6%
Revenue beat(12)7
Avg Revenue beat(12)0.4%
Revenue beat(16)11
Avg Revenue beat(16)1.75%
PT rev (1m)-7.61%
PT rev (3m)-9.11%
EPS NQ rev (1m)-9.12%
EPS NQ rev (3m)-9.23%
EPS NY rev (1m)-2.27%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)-1.86%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.78 | ||
| Fwd PE | 25.42 | ||
| P/S | 8.28 | ||
| P/FCF | 68.76 | ||
| P/OCF | 20.74 | ||
| P/B | 8.6 | ||
| P/tB | 11.89 | ||
| EV/EBITDA | 19.02 |
EPS(TTM)4.72
EY3.48%
EPS(NY)5.34
Fwd EY3.93%
FCF(TTM)1.98
FCFY1.45%
OCF(TTM)6.55
OCFY4.82%
SpS16.4
BVpS15.79
TBVpS11.42
PEG (NY)4.32
PEG (5Y)N/A
Graham Number40.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.33% | ||
| ROE | 30.17% | ||
| ROCE | 18.85% | ||
| ROIC | 16.57% | ||
| ROICexc | 19.79% | ||
| ROICexgc | 23.91% | ||
| OM | 34.82% | ||
| PM (TTM) | 29.05% | ||
| GM | 57.48% | ||
| FCFM | 12.05% |
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%
ROICexgc growth 3Y-37.97%
ROICexgc 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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 256.63% | ||
| Cap/Sales | 27.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.43% | ||
| Profit Quality | 41.47% | ||
| Current Ratio | 4.45 | ||
| Quick Ratio | 2.9 | ||
| Altman-Z | 8.19 |
F-Score7
WACC10.53%
ROIC/WACC1.57
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)1.67%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%0.68%
EPS Next Y6.67%
EPS Next 2Y9.21%
EPS Next 3Y13.82%
EPS Next 5Y17.13%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%14.24%
Revenue Next Year14.12%
Revenue Next 2Y11.03%
Revenue Next 3Y10.99%
Revenue Next 5Y10.11%
EBIT growth 1Y9.37%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year50.61%
EBIT Next 3Y27.29%
EBIT Next 5Y22.29%
FCF growth 1Y26.21%
FCF growth 3Y-38.03%
FCF growth 5Y-23.72%
OCF growth 1Y5.49%
OCF growth 3Y-10.31%
OCF growth 5Y-1.02%
TEXAS INSTRUMENTS INC / TII.DE FAQ
Can you provide the ChartMill fundamental rating for TEXAS INSTRUMENTS INC?
ChartMill assigns a fundamental rating of 6 / 10 to TII.DE.
What is the valuation status of TEXAS INSTRUMENTS INC (TII.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to TEXAS INSTRUMENTS INC (TII.DE). This can be considered as Overvalued.
Can you provide the profitability details for TEXAS INSTRUMENTS INC?
TEXAS INSTRUMENTS INC (TII.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TEXAS INSTRUMENTS INC (TII.DE) stock?
The Price/Earnings (PE) ratio for TEXAS INSTRUMENTS INC (TII.DE) is 28.78 and the Price/Book (PB) ratio is 8.6.
What is the earnings growth outlook for TEXAS INSTRUMENTS INC?
The Earnings per Share (EPS) of TEXAS INSTRUMENTS INC (TII.DE) is expected to grow by 6.67% in the next year.