TEXAS INSTRUMENTS INC (TXN) Stock Fundamental Analysis

NASDAQ:TXN • US8825081040

223.65 USD
-2.91 (-1.28%)
Last: Feb 12, 2026, 01:58 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

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. While TXN belongs to the best of the industry regarding profitability, 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. Finally TXN also has an excellent dividend rating. This makes TXN very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

7

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.
  • In the past 5 years TXN has always been profitable.
  • 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 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 88.50% of the companies in the same industry.
  • With an excellent Return On Equity value of 30.56%, TXN belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 17.15%, TXN belongs to the best of the industry, outperforming 91.15% of the companies in the same industry.
  • TXN had an Average Return On Invested Capital over the past 3 years of 18.01%. This is significantly above the industry average of 10.76%.
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

  • With an excellent Profit Margin value of 28.12%, TXN belongs to the best of the industry, outperforming 85.84% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TXN has declined.
  • TXN's Operating Margin of 34.72% is amongst the best of the industry. TXN outperforms 93.81% of its industry peers.
  • In the last couple of years the Operating Margin of TXN has declined.
  • The Gross Margin of TXN (57.02%) is better than 79.65% of its industry peers.
  • TXN's Gross Margin has declined in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TXN is creating some value.
  • TXN has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for TXN has been reduced compared to 5 years ago.
  • The debt/assets ratio for TXN is higher compared to a year ago.
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

  • TXN has an Altman-Z score of 10.32. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
  • TXN has a better Altman-Z score (10.32) than 70.80% of its industry peers.
  • The Debt to FCF ratio of TXN is 5.40, which is a neutral value as it means it would take TXN, 5.40 years of fcf income to pay off all of its debts.
  • TXN has a Debt to FCF ratio (5.40) which is comparable to the rest of the industry.
  • TXN has a Debt/Equity ratio of 0.83. This is a neutral value indicating TXN is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.83, TXN is not doing good in the industry: 81.42% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.4
Altman-Z 10.32
ROIC/WACC1.57
WACC10.94%
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.
  • With a decent Current ratio value of 4.35, TXN is doing good in the industry, outperforming 64.60% of the companies in the same industry.
  • A Quick Ratio of 2.83 indicates that TXN has no problem at all paying its short term obligations.
  • The Quick ratio of TXN (2.83) is better than 61.06% 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. Growth

3.1 Past

  • TXN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.82%.
  • 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%.
  • TXN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.10% yearly.
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

  • Based on estimates for the next years, TXN will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.54% on average per year.
  • Based on estimates for the next years, TXN will show a small growth in Revenue. The Revenue will grow by 7.83% on average per year.
EPS Next Y18.99%
EPS Next 2Y19.96%
EPS Next 3Y20.01%
EPS Next 5Y19.54%
Revenue Next Year10.25%
Revenue Next 2Y10.15%
Revenue Next 3Y10.35%
Revenue Next 5Y7.83%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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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3

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 41.11 indicates a quite expensive valuation of TXN.
  • 74.34% of the companies in the same industry are more expensive than TXN, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 28.18. TXN is valued slightly more expensive when compared to this.
  • TXN is valuated quite expensively with a Price/Forward Earnings ratio of 34.55.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 62.83% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.01. TXN is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 41.11
Fwd PE 34.55
TXN Price Earnings VS Forward Price EarningsTXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 72.57% of the companies listed in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as TXN.
Industry RankSector Rank
P/FCF 78.07
EV/EBITDA 26.22
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 decent profitability rating of TXN may justify a higher PE ratio.
  • TXN's earnings are expected to grow with 20.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y19.96%
EPS Next 3Y20.01%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.54%, TXN has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.53, TXN pays a better dividend. On top of this TXN pays more dividend than 93.81% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, TXN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.54%

5.2 History

  • The dividend of TXN is nicely growing with an annual growth rate of 8.24%!
  • TXN has been paying a dividend for at least 10 years, so it has 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.
  • The dividend of TXN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.52%
EPS Next 2Y19.96%
EPS Next 3Y20.01%
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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TEXAS INSTRUMENTS INC

NASDAQ:TXN (2/12/2026, 1:58:06 PM)

223.65

-2.91 (-1.28%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-27
Earnings (Next)04-21
Inst Owners90.72%
Inst Owner Change-1.8%
Ins Owners0.1%
Ins Owner Change3.68%
Market Cap203.21B
Revenue(TTM)17.68B
Net Income(TTM)4.97B
Analysts65.91
Price Target213.95 (-4.34%)
Short Float %2.12%
Short Ratio2.54
Dividend
Industry RankSector Rank
Dividend Yield 2.54%
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)13.17%
PT rev (3m)12.55%
EPS NQ rev (1m)8.19%
EPS NQ rev (3m)8.01%
EPS NY rev (1m)4.64%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)2.27%
Revenue NQ rev (3m)2.17%
Revenue NY rev (1m)2.11%
Revenue NY rev (3m)2.04%
Valuation
Industry RankSector Rank
PE 41.11
Fwd PE 34.55
P/S 11.49
P/FCF 78.07
P/OCF 28.41
P/B 12.49
P/tB 17.36
EV/EBITDA 26.22
EPS(TTM)5.44
EY2.43%
EPS(NY)6.47
Fwd EY2.89%
FCF(TTM)2.86
FCFY1.28%
OCF(TTM)7.87
OCFY3.52%
SpS19.46
BVpS17.91
TBVpS12.88
PEG (NY)2.16
PEG (5Y)N/A
Graham Number46.82
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 10.32
F-Score7
WACC10.94%
ROIC/WACC1.57
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 Y18.99%
EPS Next 2Y19.96%
EPS Next 3Y20.01%
EPS Next 5Y19.54%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-4.07%
Revenue growth 5Y4.1%
Sales Q2Q%10.38%
Revenue Next Year10.25%
Revenue Next 2Y10.15%
Revenue Next 3Y10.35%
Revenue Next 5Y7.83%
EBIT growth 1Y14.96%
EBIT growth 3Y-16.1%
EBIT growth 5Y0.74%
EBIT Next Year53.96%
EBIT Next 3Y23.77%
EBIT Next 5Y22.45%
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 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 7 / 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 18.99% 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%.