191.58 USD
+2.46 (+1.3%)
191.58 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TXN. 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 valied quite expensively at the moment, while it does show a decent growth rate. TXN also has an excellent dividend rating. These ratings could make TXN a good candidate 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.
- Each year in the past 5 years TXN has been profitable.
- In the past 5 years TXN always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 14.33%, TXN belongs to the top of the industry, outperforming 88.50% of the companies in the same industry.
- 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.
- The Return On Invested Capital of TXN (16.57%) is better than 91.15% 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 10.75%.
- 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
- Looking at the Profit Margin, with a value of 29.05%, TXN belongs to the top of the industry, outperforming 88.50% of the companies in the same industry.
- TXN's Profit Margin has declined in the last couple of years.
- TXN's Operating Margin of 34.82% is amongst the best of the industry. TXN outperforms 92.92% of its industry peers.
- In the last couple of years the Operating Margin of TXN has declined.
- Looking at the Gross Margin, with a value of 57.48%, TXN belongs to the top of the industry, outperforming 81.42% of the companies in the same industry.
- In the last couple of years the Gross Margin of TXN 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TXN is creating value.
- The number of shares outstanding for TXN has been increased compared to 1 year ago.
- Compared to 5 years ago, TXN has less shares outstanding
- Compared to 1 year ago, TXN has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 9.21 indicates that TXN is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 9.21, TXN is doing good in the industry, outperforming 67.26% 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 has a Debt to FCF ratio (6.75) which is in line with 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.
- With a Debt to Equity ratio value of 0.81, TXN is not doing good in the industry: 81.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 9.21 |
ROIC/WACC1.54
WACC10.74%
2.3 Liquidity
- A Current Ratio of 4.45 indicates that TXN has no problem at all paying its short term obligations.
- TXN has a better Current ratio (4.45) than 66.37% of its industry peers.
- A Quick Ratio of 2.90 indicates that TXN has no problem at all paying its short term obligations.
- TXN has a better Quick ratio (2.90) 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.
- The Revenue has been growing slightly by 1.69% on average over the past years.
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.
- TXN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.26% yearly.
EPS Next Y6.63%
EPS Next 2Y9.18%
EPS Next 3Y13.64%
EPS Next 5Y17.13%
Revenue Next Year14.1%
Revenue Next 2Y10.99%
Revenue Next 3Y10.82%
Revenue Next 5Y10.26%
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.
- 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
- With a Price/Earnings ratio of 35.02, TXN can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, TXN is valued a bit cheaper than the industry average as 76.99% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of TXN to the average of the S&P500 Index (27.38), we can say TXN is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 30.97, the valuation of TXN can be described as expensive.
- Based on the Price/Forward Earnings ratio, TXN is valued a bit cheaper than the industry average as 69.03% of the companies are valued more expensively.
- TXN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.02 | ||
| Fwd PE | 30.97 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than 72.57% 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 | 83.69 | ||
| EV/EBITDA | 22.95 |
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 13.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.28
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
- TXN has a Yearly Dividend Yield of 3.00%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.51, TXN pays a better dividend. On top of this TXN pays more dividend than 95.58% 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 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
- The dividend of TXN is nicely growing with an annual growth rate of 10.46%!
- 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 2Y9.18%
EPS Next 3Y13.64%
191.58
+2.46 (+1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)01-27 2026-01-27/amc
Inst Owners90.72%
Inst Owner Change0.15%
Ins Owners0.1%
Ins Owner Change-0.17%
Market Cap174.07B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts65.91
Price Target189.65 (-1.01%)
Short Float %2.16%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend5.27
Dividend Growth(5Y)10.46%
DP98.66%
Div Incr Years21
Div Non Decr Years26
Ex-Date01-30 2026-01-30 (1.42)
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)0.09%
PT rev (3m)-7.32%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-9.32%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.02 | ||
| Fwd PE | 30.97 | ||
| P/S | 10.08 | ||
| P/FCF | 83.69 | ||
| P/OCF | 25.24 | ||
| P/B | 10.47 | ||
| P/tB | 14.47 | ||
| EV/EBITDA | 22.95 |
EPS(TTM)5.47
EY2.86%
EPS(NY)6.19
Fwd EY3.23%
FCF(TTM)2.29
FCFY1.19%
OCF(TTM)7.59
OCFY3.96%
SpS19
BVpS18.3
TBVpS13.24
PEG (NY)5.28
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 | 9.21 |
F-Score7
WACC10.74%
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)1.67%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%0.68%
EPS Next Y6.63%
EPS Next 2Y9.18%
EPS Next 3Y13.64%
EPS Next 5Y17.13%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%14.24%
Revenue Next Year14.1%
Revenue Next 2Y10.99%
Revenue Next 3Y10.82%
Revenue Next 5Y10.26%
EBIT growth 1Y9.37%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year48.66%
EBIT Next 3Y25.46%
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.
What is the valuation status of TEXAS INSTRUMENTS INC (TXN) stock?
ChartMill assigns a valuation rating of 3 / 10 to TEXAS INSTRUMENTS INC (TXN). This can be considered as Overvalued.
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 6.63% 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 98.66%.