TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
FRA:TII - Deutsche Boerse Ag - US8825081040 - Common Stock - Currency: EUR
Overall TII gets a fundamental rating of 5 out of 10. We evaluated TII against 55 industry peers in the Semiconductors & Semiconductor Equipment industry. TII has an excellent profitability rating, but 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
In the past year TII was profitable.
In the past year TII had a positive cash flow from operations.
Each year in the past 5 years TII has been profitable.
TII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 14.36%, TII is doing good in the industry, outperforming 74.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 29.54%, TII is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
TII's Return On Invested Capital of 15.47% is fine compared to the rest of the industry. TII outperforms 74.55% of its industry peers.
TII had an Average Return On Invested Capital over the past 3 years of 24.88%. This is significantly above the industry average of 15.29%.
The last Return On Invested Capital (15.47%) 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 | 29.54% | ||
| ROIC | 15.47% |
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
With an excellent Profit Margin value of 30.20%, TII belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
TII's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 34.29%, TII belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
TII's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 58.02%, TII belongs to the best of the industry, outperforming 81.82% 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 | 34.29% | ||
| PM (TTM) | 30.2% | ||
| GM | 58.02% |
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.
The number of shares outstanding for TII has been reduced compared to 5 years ago.
TII has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.76 indicates that TII is not in any danger for bankruptcy at the moment.
TII has a Altman-Z score of 9.76. This is in the better half of the industry: TII outperforms 80.00% of its industry peers.
TII has a debt to FCF ratio of 8.83. This is a slightly negative value and a sign of low solvency as TII would need 8.83 years to pay back of all of its debts.
The Debt to FCF ratio of TII (8.83) is worse than 63.64% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that TII is somewhat dependend on debt financing.
TII's Debt to Equity ratio of 0.78 is on the low side compared to the rest of the industry. TII is outperformed by 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.83 | ||
| Altman-Z | 9.76 |
ROIC/WACC1.54
WACC10.03%
2.3 Liquidity
TII has a Current Ratio of 5.26. This indicates that TII is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.26, TII belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
A Quick Ratio of 3.37 indicates that TII has no problem at all paying its short term obligations.
The Quick ratio of TII (3.37) is better than 92.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.26 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
The earnings per share for TII have decreased strongly by -17.78% in the last year.
The Revenue has decreased by -4.48% in the past year.
TII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.69% yearly.
EPS 1Y (TTM)-17.78%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%6.67%
Revenue 1Y (TTM)-4.48%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%11.14%
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 17.38% yearly.
TII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.81% yearly.
EPS Next Y7.67%
EPS Next 2Y13.54%
EPS Next 3Y15.72%
EPS Next 5Y17.38%
Revenue Next Year11.77%
Revenue Next 2Y10.99%
Revenue Next 3Y10.79%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.51, which means the current valuation is very expensive for TII.
Based on the Price/Earnings ratio, TII is valued a bit more expensive than the industry average as 65.45% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.34. TII is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 29.54, the valuation of TII can be described as expensive.
Based on the Price/Forward Earnings ratio, TII is valued a bit more expensive than 78.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TII to the average of the S&P500 Index (22.19), we can say TII is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.51 | ||
| Fwd PE | 29.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TII is valued a bit more expensive than 69.09% of the companies 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 67.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.39 | ||
| EV/EBITDA | 25.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TII has a very decent profitability rating, which may justify a higher PE ratio.
TII's earnings are expected to grow with 15.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.89
PEG (5Y)N/A
EPS Next 2Y13.54%
EPS Next 3Y15.72%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 2.72%. 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 1.28. TII pays more dividend than 92.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TII has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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
TII pays out 100.06% of its income as dividend. This is not a sustainable payout ratio.
TII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP100.06%
EPS Next 2Y13.54%
EPS Next 3Y15.72%
FRA:TII (6/19/2025, 7:00:00 PM)
172.18
-0.96 (-0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap156.42B
Analysts66.83
Price Target158.4 (-8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend4.58
Dividend Growth(5Y)10.46%
DP100.06%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.8%
Min EPS beat(2)6.88%
Max EPS beat(2)18.72%
EPS beat(4)4
Avg EPS beat(4)8.73%
Min EPS beat(4)3.53%
Max EPS beat(4)18.72%
EPS beat(8)8
Avg EPS beat(8)6.58%
EPS beat(12)12
Avg EPS beat(12)6.5%
EPS beat(16)15
Avg EPS beat(16)6.94%
Revenue beat(2)2
Avg Revenue beat(2)2.69%
Min Revenue beat(2)2.38%
Max Revenue beat(2)3.01%
Revenue beat(4)2
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)3.01%
Revenue beat(8)4
Avg Revenue beat(8)0.42%
Revenue beat(12)7
Avg Revenue beat(12)1.28%
Revenue beat(16)10
Avg Revenue beat(16)1.8%
PT rev (1m)-0.01%
PT rev (3m)-20.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.5%
EPS NY rev (1m)0%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.51 | ||
| Fwd PE | 29.54 | ||
| P/S | 11.19 | ||
| P/FCF | 123.39 | ||
| P/OCF | 29.19 | ||
| P/B | 10.94 | ||
| P/tB | 15.24 | ||
| EV/EBITDA | 25.84 |
EPS(TTM)4.59
EY2.67%
EPS(NY)5.83
Fwd EY3.39%
FCF(TTM)1.4
FCFY0.81%
OCF(TTM)5.9
OCFY3.43%
SpS15.39
BVpS15.73
TBVpS11.3
PEG (NY)4.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.36% | ||
| ROE | 29.54% | ||
| ROCE | 17.6% | ||
| ROIC | 15.47% | ||
| ROICexc | 18.41% | ||
| ROICexgc | 22.35% | ||
| OM | 34.29% | ||
| PM (TTM) | 30.2% | ||
| GM | 58.02% | ||
| FCFM | 9.07% |
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-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.83 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 282.49% | ||
| Cap/Sales | 29.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.83% | ||
| Profit Quality | 30.02% | ||
| Current Ratio | 5.26 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | 9.76 |
F-Score5
WACC10.03%
ROIC/WACC1.54
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)-17.78%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%6.67%
EPS Next Y7.67%
EPS Next 2Y13.54%
EPS Next 3Y15.72%
EPS Next 5Y17.38%
Revenue 1Y (TTM)-4.48%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%11.14%
Revenue Next Year11.77%
Revenue Next 2Y10.99%
Revenue Next 3Y10.79%
Revenue Next 5Y10.81%
EBIT growth 1Y-16.1%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year46.85%
EBIT Next 3Y26.02%
EBIT Next 5Y22.18%
FCF growth 1Y-66.93%
FCF growth 3Y-38.03%
FCF growth 5Y-23.72%
OCF growth 1Y-20.5%
OCF growth 3Y-10.31%
OCF growth 5Y-1.02%