177.08 USD
-1.74 (-0.97%)
177.25 USD
+0.17 (+0.1%)
Taking everything into account, TXN scores 6 out of 10 in our fundamental rating. TXN was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. TXN scores excellent on profitability, but there are some minor concerns on its financial health. TXN is not valued too expensively and it also shows a decent growth rate. TXN also has an excellent dividend rating. These ratings would make TXN suitable for dividend investing!
1. Profitability
1.1 Basic Checks
TXN had positive earnings in the past year.
TXN had a positive operating cash flow in the past year.
TXN had positive earnings in each of the past 5 years.
TXN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TXN (14.33%) is better than 88.50% of its industry peers.
TXN has a Return On Equity of 30.17%. This is amongst the best in the industry. TXN outperforms 92.04% of its industry peers.
TXN's Return On Invested Capital of 16.57% is amongst the best of the industry. TXN outperforms 91.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXN is significantly above the industry average of 10.77%.
The last Return On Invested Capital (16.57%) for TXN is well below the 3 year average (24.88%), which needs to be investigated, but indicates that TXN had better years and this may not be a problem.
| 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
TXN's Profit Margin of 29.05% is amongst the best of the industry. TXN outperforms 88.50% of its industry peers.
In the last couple of years the Profit Margin of TXN has declined.
With an excellent Operating Margin value of 34.82%, TXN belongs to the best of the industry, outperforming 92.92% of the companies in the same industry.
In the last couple of years the Operating Margin of TXN has declined.
TXN has a better Gross Margin (57.48%) than 81.42% of its industry peers.
TXN's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TXN is creating value.
Compared to 1 year ago, TXN has more shares outstanding
Compared to 5 years ago, TXN has less shares outstanding
The debt/assets ratio for TXN is higher compared to a year ago.
2.2 Solvency
TXN has an Altman-Z score of 8.83. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.83, TXN is in the better half of the industry, outperforming 69.03% of the companies in the same industry.
The Debt to FCF ratio of TXN is 6.75, which is on the high side as it means it would take TXN, 6.75 years of fcf income to pay off all of its debts.
TXN's Debt to FCF ratio of 6.75 is in line compared to the rest of the industry. TXN outperforms 53.98% of its industry peers.
TXN has a Debt/Equity ratio of 0.81. This is a neutral value indicating TXN is somewhat dependend on debt financing.
TXN has a Debt to Equity ratio of 0.81. This is amonst the worse of the industry: TXN underperforms 83.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 8.83 |
ROIC/WACC1.57
WACC10.58%
2.3 Liquidity
A Current Ratio of 4.45 indicates that TXN has no problem at all paying its short term obligations.
The Current ratio of TXN (4.45) is better than 66.37% of its industry peers.
TXN has a Quick Ratio of 2.90. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TXN (2.90) is better than 61.95% 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.
Looking at the last year, TXN shows a quite strong growth in Revenue. The Revenue has grown by 9.90% in the last year.
Measured over the past years, TXN shows a small growth in Revenue. The Revenue has been growing by 1.69% on average per year.
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
The Earnings Per Share is expected to grow by 17.13% on average over the next years. This is quite good.
Based on estimates for the next years, TXN will show a quite strong growth in Revenue. The Revenue will grow by 10.11% on average per year.
EPS Next Y6.69%
EPS Next 2Y9.24%
EPS Next 3Y13.85%
EPS Next 5Y17.13%
Revenue Next Year14.12%
Revenue Next 2Y11.03%
Revenue Next 3Y10.99%
Revenue Next 5Y10.11%
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
Based on the Price/Earnings ratio of 32.37, the valuation of TXN can be described as expensive.
TXN's Price/Earnings ratio is a bit cheaper when compared to the industry. TXN is cheaper than 72.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of TXN to the average of the S&P500 Index (26.61), we can say TXN is valued slightly more expensively.
The Price/Forward Earnings ratio is 28.59, which means the current valuation is very expensive for TXN.
63.72% of the companies in the same industry are more expensive than TXN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.01. TXN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 28.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than 71.68% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.35 | ||
| EV/EBITDA | 21.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TXN may justify a higher PE ratio.
TXN's earnings are expected to grow with 13.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.84
PEG (5Y)N/A
EPS Next 2Y9.24%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
TXN has a Yearly Dividend Yield of 3.22%. Purely for dividend investing, there may be better candidates out there.
TXN's Dividend Yield is rather good when compared to the industry average which is at 0.56. TXN pays more dividend than 95.58% of the companies in the same industry.
TXN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
On average, the dividend of TXN grows each year by 10.46%, which is quite nice.
TXN has paid a dividend for at least 10 years, which is a reliable track record.
TXN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.46%
Div Incr Years21
Div Non Decr Years26
5.3 Sustainability
TXN pays out 98.66% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TXN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.66%
EPS Next 2Y9.24%
EPS Next 3Y13.85%
177.08
-1.74 (-0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.68%
Inst Owner Change-1.08%
Ins Owners0.1%
Ins Owner Change-0.17%
Market Cap160.90B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts66.82
Price Target189.47 (7%)
Short Float %1.98%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend5.27
Dividend Growth(5Y)10.46%
DP98.66%
Div Incr Years21
Div Non Decr Years26
Ex-Date
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)-0.33%
PT rev (3m)-7.41%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-9.11%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 28.59 | ||
| P/S | 9.32 | ||
| P/FCF | 77.35 | ||
| P/OCF | 23.33 | ||
| P/B | 9.68 | ||
| P/tB | 13.38 | ||
| EV/EBITDA | 21.48 |
EPS(TTM)5.47
EY3.09%
EPS(NY)6.19
Fwd EY3.5%
FCF(TTM)2.29
FCFY1.29%
OCF(TTM)7.59
OCFY4.29%
SpS19
BVpS18.3
TBVpS13.24
PEG (NY)4.84
PEG (5Y)N/A
Graham Number47.46
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 | 8.83 |
F-Score7
WACC10.58%
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 Y6.69%
EPS Next 2Y9.24%
EPS Next 3Y13.85%
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 Year48.79%
EBIT Next 3Y25.55%
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 / TXN FAQ
What is the ChartMill fundamental rating of TEXAS INSTRUMENTS INC (TXN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TXN.
Can you provide the valuation status for TEXAS INSTRUMENTS INC?
ChartMill assigns a valuation rating of 4 / 10 to TEXAS INSTRUMENTS INC (TXN). This can be considered as Fairly Valued.
How profitable is TEXAS INSTRUMENTS INC (TXN) stock?
TEXAS INSTRUMENTS INC (TXN) has a profitability rating of 8 / 10.
How financially healthy is TEXAS INSTRUMENTS INC?
The financial health rating of TEXAS INSTRUMENTS INC (TXN) is 6 / 10.
What is the earnings growth outlook for TEXAS INSTRUMENTS INC?
The Earnings per Share (EPS) of TEXAS INSTRUMENTS INC (TXN) is expected to grow by 6.69% in the next year.