TEXAS INSTRUMENTS INC (TXN) Fundamental Analysis & Valuation

NASDAQ:TXN • US8825081040

Current stock price

190.78 USD
-3.67 (-1.89%)
At close:
190.1 USD
-0.68 (-0.36%)
Pre-Market:

This TXN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. TXN Profitability Analysis

1.1 Basic Checks

  • TXN had positive earnings in the past year.
  • In the past year TXN had a positive cash flow from operations.
  • In the past 5 years TXN has always been profitable.
  • Each year in the past 5 years TXN had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • With an excellent Return On Assets value of 14.38%, TXN belongs to the best of the industry, outperforming 87.83% of the companies in the same industry.
  • TXN has a better Return On Equity (30.56%) than 91.30% of its industry peers.
  • TXN has a better Return On Invested Capital (17.15%) than 92.17% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TXN is significantly above the industry average of 10.52%.
Industry RankSector Rank
ROA 14.38%
ROE 30.56%
ROIC 17.15%
ROA(3y)15.95%
ROA(5y)22.24%
ROE(3y)32.38%
ROE(5y)42.98%
ROIC(3y)18.01%
ROIC(5y)25.5%
TXN Yearly ROA, ROE, ROICTXN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • TXN has a Profit Margin of 28.12%. This is amongst the best in the industry. TXN outperforms 85.22% of its industry peers.
  • TXN's Profit Margin has declined in the last couple of years.
  • TXN has a better Operating Margin (34.72%) than 93.91% of its industry peers.
  • In the last couple of years the Operating Margin of TXN has declined.
  • TXN has a Gross Margin of 57.02%. This is amongst the best in the industry. TXN outperforms 80.87% of its industry peers.
  • In the last couple of years the Gross Margin of TXN has declined.
Industry RankSector Rank
OM 34.72%
PM (TTM) 28.12%
GM 57.02%
OM growth 3Y-12.54%
OM growth 5Y-3.23%
PM growth 3Y-13.52%
PM growth 5Y-6.09%
GM growth 3Y-6.05%
GM growth 5Y-2.31%
TXN Yearly Profit, Operating, Gross MarginsTXN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. TXN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TXN is creating some value.
  • Compared to 1 year ago, TXN has less shares outstanding
  • The number of shares outstanding for TXN has been reduced compared to 5 years ago.
  • TXN has a worse debt/assets ratio than last year.
TXN Yearly Shares OutstandingTXN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
TXN Yearly Total Debt VS Total AssetsTXN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 9.25 indicates that TXN is not in any danger for bankruptcy at the moment.
  • TXN has a Altman-Z score of 9.25. This is in the better half of the industry: TXN outperforms 70.43% of its industry peers.
  • TXN has a debt to FCF ratio of 5.40. This is a neutral value as TXN would need 5.40 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 5.40, TXN perfoms like the industry average, outperforming 55.65% of the companies in the same industry.
  • TXN has a Debt/Equity ratio of 0.83. This is a neutral value indicating TXN is somewhat dependend on debt financing.
  • TXN has a Debt to Equity ratio of 0.83. This is amonst the worse of the industry: TXN underperforms 81.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.4
Altman-Z 9.25
ROIC/WACC1.51
WACC11.35%
TXN Yearly LT Debt VS Equity VS FCFTXN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • TXN has a Current Ratio of 4.35. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
  • TXN's Current ratio of 4.35 is fine compared to the rest of the industry. TXN outperforms 65.22% of its industry peers.
  • TXN has a Quick Ratio of 2.83. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
  • TXN's Quick ratio of 2.83 is fine compared to the rest of the industry. TXN outperforms 60.87% of its industry peers.
Industry RankSector Rank
Current Ratio 4.35
Quick Ratio 2.83
TXN Yearly Current Assets VS Current LiabilitesTXN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. TXN Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.82% over the past year.
  • The Earnings Per Share has been decreasing by -1.31% on average over the past years.
  • TXN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.05%.
  • Measured over the past years, TXN shows a small growth in Revenue. The Revenue has been growing by 4.10% on average per year.
EPS 1Y (TTM)4.82%
EPS 3Y-16.61%
EPS 5Y-1.31%
EPS Q2Q%-2.31%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-4.07%
Revenue growth 5Y4.1%
Sales Q2Q%10.38%

3.2 Future

  • The Earnings Per Share is expected to grow by 18.47% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 10.04% on average over the next years. This is quite good.
EPS Next Y19.76%
EPS Next 2Y20.34%
EPS Next 3Y20.73%
EPS Next 5Y18.47%
Revenue Next Year10.46%
Revenue Next 2Y10.44%
Revenue Next 3Y10.83%
Revenue Next 5Y10.04%

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 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 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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4

4. TXN Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 35.07 indicates a quite expensive valuation of TXN.
  • TXN's Price/Earnings ratio is a bit cheaper when compared to the industry. TXN is cheaper than 80.00% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.79. TXN is valued slightly more expensive when compared to this.
  • TXN is valuated quite expensively with a Price/Forward Earnings ratio of 29.28.
  • TXN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TXN is cheaper than 66.96% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, TXN is valued a bit more expensive.
Industry RankSector Rank
PE 35.07
Fwd PE 29.28
TXN Price Earnings VS Forward Price EarningsTXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 77.39% of the companies in the same industry are more expensive than TXN, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 62.61% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 66.52
EV/EBITDA 22.2
TXN Per share dataTXN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of TXN may justify a higher PE ratio.
  • TXN's earnings are expected to grow with 20.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.78
PEG (5Y)N/A
EPS Next 2Y20.34%
EPS Next 3Y20.73%

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7

5. TXN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.99%, TXN has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.49, TXN pays a better dividend. On top of this TXN pays more dividend than 95.65% of the companies listed in the same industry.
  • TXN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.99%

5.2 History

  • The dividend of TXN is nicely growing with an annual growth rate of 8.24%!
  • 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)8.24%
Div Incr Years21
Div Non Decr Years26
TXN Yearly Dividends per shareTXN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • 100.52% 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.
DP100.52%
EPS Next 2Y20.34%
EPS Next 3Y20.73%
TXN Yearly Income VS Free CF VS DividendTXN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
TXN Dividend Payout.TXN Dividend Payout, showing the Payout Ratio.TXN Dividend Payout.PayoutRetained Earnings

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TXN Fundamentals: All Metrics, Ratios and Statistics

TEXAS INSTRUMENTS INC

NASDAQ:TXN (3/18/2026, 8:00:01 PM)

Premarket: 190.1 -0.68 (-0.36%)

190.78

-3.67 (-1.89%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-27
Earnings (Next)04-21
Inst Owners92.39%
Inst Owner Change1.67%
Ins Owners0.11%
Ins Owner Change2.79%
Market Cap173.14B
Revenue(TTM)17.68B
Net Income(TTM)4.97B
Analysts66.22
Price Target220.13 (15.38%)
Short Float %2.15%
Short Ratio2.41
Dividend
Industry RankSector Rank
Dividend Yield 2.99%
Yearly Dividend5.5
Dividend Growth(5Y)8.24%
DP100.52%
Div Incr Years21
Div Non Decr Years26
Ex-Date01-30
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.19%
Min EPS beat(2)-2.77%
Max EPS beat(2)-1.62%
EPS beat(4)2
Avg EPS beat(4)4.37%
Min EPS beat(4)-2.77%
Max EPS beat(4)18.72%
EPS beat(8)6
Avg EPS beat(8)5.61%
EPS beat(12)10
Avg EPS beat(12)4.54%
EPS beat(16)14
Avg EPS beat(16)5.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)1.15%
Revenue beat(4)3
Avg Revenue beat(4)0.96%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)3.01%
Revenue beat(8)5
Avg Revenue beat(8)0.67%
Revenue beat(12)6
Avg Revenue beat(12)0.27%
Revenue beat(16)10
Avg Revenue beat(16)1.16%
PT rev (1m)2.89%
PT rev (3m)16.18%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)8.31%
EPS NY rev (1m)0.64%
EPS NY rev (3m)5.2%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)2.24%
Valuation
Industry RankSector Rank
PE 35.07
Fwd PE 29.28
P/S 9.79
P/FCF 66.52
P/OCF 24.21
P/B 10.64
P/tB 14.79
EV/EBITDA 22.2
EPS(TTM)5.44
EY2.85%
EPS(NY)6.51
Fwd EY3.41%
FCF(TTM)2.87
FCFY1.5%
OCF(TTM)7.88
OCFY4.13%
SpS19.48
BVpS17.93
TBVpS12.9
PEG (NY)1.78
PEG (5Y)N/A
Graham Number46.85
Profitability
Industry RankSector Rank
ROA 14.38%
ROE 30.56%
ROCE 19.54%
ROIC 17.15%
ROICexc 20.31%
ROICexgc 24.53%
OM 34.72%
PM (TTM) 28.12%
GM 57.02%
FCFM 14.72%
ROA(3y)15.95%
ROA(5y)22.24%
ROE(3y)32.38%
ROE(5y)42.98%
ROIC(3y)18.01%
ROIC(5y)25.5%
ROICexc(3y)23.69%
ROICexc(5y)39.06%
ROICexgc(3y)29.64%
ROICexgc(5y)54.92%
ROCE(3y)20.52%
ROCE(5y)29.05%
ROICexgc growth 3Y-34.12%
ROICexgc growth 5Y-22.94%
ROICexc growth 3Y-30.4%
ROICexc growth 5Y-16.49%
OM growth 3Y-12.54%
OM growth 5Y-3.23%
PM growth 3Y-13.52%
PM growth 5Y-6.09%
GM growth 3Y-6.05%
GM growth 5Y-2.31%
F-Score7
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.4
Debt/EBITDA 1.66
Cap/Depr 227.61%
Cap/Sales 25.73%
Interest Coverage 250
Cash Conversion 87.89%
Profit Quality 52.34%
Current Ratio 4.35
Quick Ratio 2.83
Altman-Z 9.25
F-Score7
WACC11.35%
ROIC/WACC1.51
Cap/Depr(3y)314.1%
Cap/Depr(5y)297.21%
Cap/Sales(3y)28.5%
Cap/Sales(5y)22.58%
Profit Quality(3y)34.85%
Profit Quality(5y)50.78%
High Growth Momentum
Growth
EPS 1Y (TTM)4.82%
EPS 3Y-16.61%
EPS 5Y-1.31%
EPS Q2Q%-2.31%
EPS Next Y19.76%
EPS Next 2Y20.34%
EPS Next 3Y20.73%
EPS Next 5Y18.47%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-4.07%
Revenue growth 5Y4.1%
Sales Q2Q%10.38%
Revenue Next Year10.46%
Revenue Next 2Y10.44%
Revenue Next 3Y10.83%
Revenue Next 5Y10.04%
EBIT growth 1Y14.96%
EBIT growth 3Y-16.1%
EBIT growth 5Y0.74%
EBIT Next Year57.57%
EBIT Next 3Y27.55%
EBIT Next 5Y22.3%
FCF growth 1Y73.77%
FCF growth 3Y-23.97%
FCF growth 5Y-13.86%
OCF growth 1Y13.22%
OCF growth 3Y-6.39%
OCF growth 5Y3.1%

TEXAS INSTRUMENTS INC / TXN Fundamental Analysis FAQ

What is the ChartMill fundamental rating of TEXAS INSTRUMENTS INC (TXN) stock?

ChartMill assigns a fundamental rating of 6 / 10 to TXN.


What is the valuation status of TEXAS INSTRUMENTS INC (TXN) stock?

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.


What is the expected EPS growth for TEXAS INSTRUMENTS INC (TXN) stock?

The Earnings per Share (EPS) of TEXAS INSTRUMENTS INC (TXN) is expected to grow by 19.76% in the next year.


Can you provide the dividend sustainability for TXN stock?

The dividend rating of TEXAS INSTRUMENTS INC (TXN) is 7 / 10 and the dividend payout ratio is 100.52%.