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TEXAS INSTRUMENTS INC (TXN) Stock Fundamental Analysis

USA - NASDAQ:TXN - US8825081040 - Common Stock

163.22 USD
-3.69 (-2.21%)
Last: 10/29/2025, 10:40:55 AM
Fundamental Rating

6

TXN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. TXN scores excellent on profitability, but there are some minor concerns on its financial health. TXN has a correct valuation and a medium growth rate. TXN also has an excellent dividend rating. These ratings could make TXN a good candidate for dividend investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year TXN was profitable.
In the past year TXN had a positive cash flow from operations.
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.
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

TXN has a better Return On Assets (14.33%) than 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 30.17%, TXN belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
TXN's Return On Invested Capital of 16.57% is amongst the best of the industry. TXN outperforms 91.07% 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 11.03%.
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 RankSector 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%
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

The Profit Margin of TXN (29.05%) is better than 89.29% of its industry peers.
TXN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 34.82%, TXN belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
TXN's Operating Margin has declined in the last couple of years.
TXN has a Gross Margin of 57.48%. This is amongst the best in the industry. TXN outperforms 82.14% of its industry peers.
In the last couple of years the Gross Margin of TXN has declined.
Industry RankSector 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%
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

6

2. Health

2.1 Basic Checks

TXN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
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

An Altman-Z score of 8.48 indicates that TXN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 8.48, TXN is doing good in the industry, outperforming 68.75% of the companies in the same industry.
TXN has a debt to FCF ratio of 6.75. This is a slightly negative value and a sign of low solvency as TXN would need 6.75 years to pay back of all of its debts.
TXN has a Debt to FCF ratio of 6.75. This is comparable to the rest of the industry: TXN outperforms 54.46% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that 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 81.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 6.75
Altman-Z 8.48
ROIC/WACC1.43
WACC11.55%
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

A Current Ratio of 4.45 indicates that TXN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.45, TXN is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
A Quick Ratio of 2.90 indicates that TXN has no problem at all paying its short term obligations.
The Quick ratio of TXN (2.90) is better than 61.61% of its industry peers.
Industry RankSector Rank
Current Ratio 4.45
Quick Ratio 2.9
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

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.67% over the past year.
TXN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.90%.
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

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.
The Revenue is expected to grow by 10.29% on average over the next years. This is quite good.
EPS Next Y8.86%
EPS Next 2Y13.6%
EPS Next 3Y15.48%
EPS Next 5Y16.92%
Revenue Next Year13.8%
Revenue Next 2Y11.91%
Revenue Next 3Y11.16%
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.
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.
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

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 29.84, which means the current valuation is very expensive for TXN.
Compared to the rest of the industry, the Price/Earnings ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 77.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, TXN is valued at the same level.
A Price/Forward Earnings ratio of 24.37 indicates a rather expensive valuation of TXN.
Based on the Price/Forward Earnings ratio, TXN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.87. TXN is around the same levels.
Industry RankSector Rank
PE 29.84
Fwd PE 24.37
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

Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than 72.32% of the companies in the same industry.
TXN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 71.34
EV/EBITDA 20.12
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.
A more expensive valuation may be justified as TXN's earnings are expected to grow with 15.48% in the coming years.
PEG (NY)3.37
PEG (5Y)N/A
EPS Next 2Y13.6%
EPS Next 3Y15.48%

7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.35%, TXN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.18, TXN pays a better dividend. On top of this TXN pays more dividend than 94.64% of the companies listed in the same industry.
TXN's Dividend Yield is a higher than the S&P500 average which is at 2.31.
Industry RankSector Rank
Dividend Yield 3.35%

5.2 History

The dividend of TXN is nicely growing with an annual growth rate of 10.46%!
TXN has been paying a dividend for at least 10 years, so it has 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

98.66% 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.
DP98.66%
EPS Next 2Y13.6%
EPS Next 3Y15.48%
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

TEXAS INSTRUMENTS INC

NASDAQ:TXN (10/29/2025, 10:40:55 AM)

163.22

-3.69 (-2.21%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)01-21 2026-01-21/amc
Inst Owners91.03%
Inst Owner Change-0.02%
Ins Owners0.22%
Ins Owner Change-0.01%
Market Cap148.39B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts68.18
Price Target190.1 (16.47%)
Short Float %1.73%
Short Ratio2.15
Dividend
Industry RankSector Rank
Dividend Yield 3.35%
Yearly Dividend5.27
Dividend Growth(5Y)10.46%
DP98.66%
Div Incr Years21
Div Non Decr Years26
Ex-Date10-31 2025-10-31 (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%
PT rev (3m)4.43%
EPS NQ rev (1m)-1.37%
EPS NQ rev (3m)-1.9%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)1.47%
Valuation
Industry RankSector Rank
PE 29.84
Fwd PE 24.37
P/S 8.59
P/FCF 71.34
P/OCF 21.52
P/B 8.92
P/tB 12.34
EV/EBITDA 20.12
EPS(TTM)5.47
EY3.35%
EPS(NY)6.7
Fwd EY4.1%
FCF(TTM)2.29
FCFY1.4%
OCF(TTM)7.59
OCFY4.65%
SpS18.99
BVpS18.29
TBVpS13.23
PEG (NY)3.37
PEG (5Y)N/A
Graham Number47.44
Profitability
Industry RankSector 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 RankSector 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 8.48
F-Score7
WACC11.55%
ROIC/WACC1.43
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 Y8.86%
EPS Next 2Y13.6%
EPS Next 3Y15.48%
EPS Next 5Y16.92%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%14.24%
Revenue Next Year13.8%
Revenue Next 2Y11.91%
Revenue Next 3Y11.16%
Revenue Next 5Y10.29%
EBIT growth 1Y9.37%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year50.61%
EBIT Next 3Y27.29%
EBIT Next 5Y22.04%
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 8.86% in the next year.