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TEXAS INSTRUMENTS INC (TXN) Stock Fundamental Analysis

NASDAQ:TXN - US8825081040 - Common Stock

205.98 USD
0.01 (0%)
Last: 8/26/2025, 8:05:35 PM
205.43 USD
-0.55 (-0.27%)
Pre-Market: 8/27/2025, 6:27:10 AM
Fundamental Rating

6

Overall TXN gets a fundamental rating of 6 out of 10. We evaluated TXN against 110 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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

TXN had positive earnings in the past year.
In the past year TXN had a positive cash flow from operations.
TXN had positive earnings in each of the past 5 years.
In the past 5 years TXN always reported a positive cash flow from operatings.
TXN Yearly Net Income VS EBIT VS OCF VS FCFTXN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

Looking at the Return On Assets, with a value of 14.36%, TXN belongs to the top of the industry, outperforming 88.18% of the companies in the same industry.
The Return On Equity of TXN (30.57%) is better than 90.91% of its industry peers.
With an excellent Return On Invested Capital value of 15.76%, TXN belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TXN is significantly above the industry average of 10.98%.
The last Return On Invested Capital (15.76%) 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 RankSector 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%
TXN Yearly ROA, ROE, ROICTXN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

TXN has a better Profit Margin (30.07%) than 92.73% of its industry peers.
In the last couple of years the Profit Margin of TXN has declined.
Looking at the Operating Margin, with a value of 34.89%, TXN belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
TXN's Operating Margin has declined in the last couple of years.
TXN has a better Gross Margin (58.03%) than 81.82% of its industry peers.
In the last couple of years the Gross Margin of TXN has declined.
Industry RankSector 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%
TXN Yearly Profit, Operating, Gross MarginsTXN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TXN is creating value.
Compared to 1 year ago, TXN has more shares outstanding
Compared to 5 years ago, TXN has less shares outstanding
Compared to 1 year ago, TXN has a worse debt to assets ratio.
TXN Yearly Shares OutstandingTXN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
TXN Yearly Total Debt VS Total AssetsTXN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

TXN has an Altman-Z score of 9.60. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
TXN has a better Altman-Z score (9.60) than 76.36% of its industry peers.
TXN has a debt to FCF ratio of 9.34. This is a negative value and a sign of low solvency as TXN would need 9.34 years to pay back of all of its debts.
The Debt to FCF ratio of TXN (9.34) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that TXN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, TXN is doing worse than 83.64% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 9.34
Altman-Z 9.6
ROIC/WACC1.36
WACC11.61%
TXN Yearly LT Debt VS Equity VS FCFTXN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

TXN has a Current Ratio of 5.81. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TXN (5.81) is better than 81.82% of its industry peers.
A Quick Ratio of 3.88 indicates that TXN has no problem at all paying its short term obligations.
TXN has a better Quick ratio (3.88) than 73.64% of its industry peers.
Industry RankSector Rank
Current Ratio 5.81
Quick Ratio 3.88
TXN Yearly Current Assets VS Current LiabilitesTXN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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5

3. Growth

3.1 Past

TXN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.21%.
The Revenue has been growing slightly by 3.62% in the past 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)-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

TXN 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, TXN 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

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.
TXN Yearly Revenue VS EstimatesTXN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
TXN Yearly EPS VS EstimatesTXN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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3

4. Valuation

4.1 Price/Earnings Ratio

TXN is valuated quite expensively with a Price/Earnings ratio of 37.73.
The rest of the industry has a similar Price/Earnings ratio as TXN.
When comparing the Price/Earnings ratio of TXN to the average of the S&P500 Index (27.08), we can say TXN is valued slightly more expensively.
With a Price/Forward Earnings ratio of 30.52, TXN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TXN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.67. TXN is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 37.73
Fwd PE 30.52
TXN Price Earnings VS Forward Price EarningsTXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than 62.73% 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 RankSector Rank
P/FCF 124.59
EV/EBITDA 25.55
TXN Per share dataTXN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TXN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TXN may justify a higher PE ratio.
TXN's earnings are expected to grow with 15.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.12
PEG (5Y)N/A
EPS Next 2Y14.04%
EPS Next 3Y15.65%

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6

5. Dividend

5.1 Amount

TXN has a Yearly Dividend Yield of 2.71%.
Compared to an average industry Dividend Yield of 2.43, TXN pays a better dividend. On top of this TXN pays more dividend than 91.82% of the companies listed in the same industry.
TXN's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.71%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.46%
Div Incr Years21
Div Non Decr Years26
TXN Yearly Dividends per shareTXN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

97.71% of the earnings are spent on dividend by TXN. This is not a sustainable payout ratio.
TXN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.71%
EPS Next 2Y14.04%
EPS Next 3Y15.65%
TXN Yearly Income VS Free CF VS DividendTXN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B
TXN Dividend Payout.TXN Dividend Payout, showing the Payout Ratio.TXN Dividend Payout.PayoutRetained Earnings

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TEXAS INSTRUMENTS INC

NASDAQ:TXN (8/26/2025, 8:05:35 PM)

Premarket: 205.43 -0.55 (-0.27%)

205.98

0.01 (0%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)07-22 2025-07-22/amc
Earnings (Next)10-20 2025-10-20/amc
Inst Owners90.52%
Inst Owner Change0.22%
Ins Owners0.22%
Ins Owner Change0%
Market Cap187.26B
Analysts68.18
Price Target205.03 (-0.46%)
Short Float %1.78%
Short Ratio2.45
Dividend
Industry RankSector Rank
Dividend Yield 2.71%
Yearly Dividend5.27
Dividend Growth(5Y)10.46%
DP97.71%
Div Incr Years21
Div Non Decr Years26
Ex-Date07-31 2025-07-31 (1.36)
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)4.64%
PT rev (3m)14.83%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0.8%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)2.76%
Revenue NY rev (1m)1.65%
Revenue NY rev (3m)2%
Valuation
Industry RankSector Rank
PE 37.73
Fwd PE 30.52
P/S 11.23
P/FCF 124.59
P/OCF 29.08
P/B 11.42
P/tB 15.88
EV/EBITDA 25.55
EPS(TTM)5.46
EY2.65%
EPS(NY)6.75
Fwd EY3.28%
FCF(TTM)1.65
FCFY0.8%
OCF(TTM)7.08
OCFY3.44%
SpS18.34
BVpS18.04
TBVpS12.97
PEG (NY)4.12
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 9.6
F-Score6
WACC11.61%
ROIC/WACC1.36
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%