165.35 USD
+3.58 (+2.21%)
165.378 USD
+0.03 (+0.02%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. TXN has a correct valuation and a medium growth rate. Finally TXN also has an excellent dividend rating. These ratings could make TXN a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year TXN was profitable.
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 90.18% of the companies in the same industry.
TXN's Return On Equity of 30.17% is amongst the best of the industry. TXN outperforms 92.86% of its industry peers.
The Return On Invested Capital of TXN (16.57%) is better than 91.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXN is significantly above the industry average of 10.75%.
The 3 year average ROIC (24.88%) for TXN is well above the current ROIC(16.57%). The reason for the recent decline needs to be investigated.
| 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 91.07% of the companies in the same industry.
TXN's Profit Margin has declined in the last couple of years.
TXN has a better Operating Margin (34.82%) than 92.86% of its industry peers.
TXN's Operating Margin has declined in the last couple of years.
The Gross Margin of TXN (57.48%) is better than 82.14% of its industry peers.
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
TXN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TXN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TXN has less shares outstanding
TXN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.43 indicates that TXN is not in any danger for bankruptcy at the moment.
TXN's Altman-Z score of 8.43 is fine compared to the rest of the industry. TXN outperforms 71.43% of its industry peers.
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 comparable to the rest of the industry.
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: 82.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 8.43 |
ROIC/WACC1.58
WACC10.5%
2.3 Liquidity
A Current Ratio of 4.45 indicates that TXN has no problem at all paying its short term obligations.
TXN's Current ratio of 4.45 is fine compared to the rest of the industry. TXN outperforms 66.07% of its industry peers.
TXN has a Quick Ratio of 2.90. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
TXN has a Quick ratio of 2.90. This is in the better half of the industry: TXN outperforms 61.61% 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.
TXN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.90%.
TXN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.69% yearly.
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.
The Revenue is expected to grow by 10.11% on average over the next years. This is quite good.
EPS Next Y6.67%
EPS Next 2Y9.21%
EPS Next 3Y13.82%
EPS Next 5Y17.13%
Revenue Next Year14.12%
Revenue Next 2Y11.03%
Revenue Next 3Y10.99%
Revenue Next 5Y10.11%
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
Based on the Price/Earnings ratio of 30.23, the valuation of TXN can be described as expensive.
73.21% of the companies in the same industry are more expensive than TXN, based on the Price/Earnings ratio.
TXN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 26.71, which means the current valuation is very expensive for TXN.
Based on the Price/Forward Earnings ratio, TXN is valued a bit cheaper than the industry average as 66.07% of the companies are valued more expensively.
TXN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.23 | ||
| Fwd PE | 26.71 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.27 | ||
| EV/EBITDA | 19.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 13.82% in the coming years.
PEG (NY)4.53
PEG (5Y)N/A
EPS Next 2Y9.21%
EPS Next 3Y13.82%
5. Dividend
5.1 Amount
TXN has a Yearly Dividend Yield of 3.70%.
Compared to an average industry Dividend Yield of 2.33, TXN pays a better dividend. On top of this TXN pays more dividend than 93.75% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
On average, the dividend of TXN grows each year by 10.46%, which is quite nice.
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
5.3 Sustainability
TXN pays out 98.66% of its income as dividend. This is not a sustainable payout ratio.
TXN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.66%
EPS Next 2Y9.21%
EPS Next 3Y13.82%
165.35
+3.58 (+2.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.03%
Inst Owner Change-1.13%
Ins Owners0.22%
Ins Owner Change-0.15%
Market Cap150.33B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts66.82
Price Target190.1 (14.97%)
Short Float %1.94%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend5.27
Dividend Growth(5Y)10.46%
DP98.66%
Div Incr Years21
Div Non Decr Years26
Ex-Date
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)-7.1%
PT rev (3m)-7.28%
EPS NQ rev (1m)-7.91%
EPS NQ rev (3m)-9.23%
EPS NY rev (1m)-2.01%
EPS NY rev (3m)-2.28%
Revenue NQ rev (1m)-1.34%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.23 | ||
| Fwd PE | 26.71 | ||
| P/S | 8.71 | ||
| P/FCF | 72.27 | ||
| P/OCF | 21.8 | ||
| P/B | 9.04 | ||
| P/tB | 12.5 | ||
| EV/EBITDA | 19.94 |
EPS(TTM)5.47
EY3.31%
EPS(NY)6.19
Fwd EY3.74%
FCF(TTM)2.29
FCFY1.38%
OCF(TTM)7.59
OCFY4.59%
SpS18.99
BVpS18.29
TBVpS13.23
PEG (NY)4.53
PEG (5Y)N/A
Graham Number47.44
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 | 8.43 |
F-Score7
WACC10.5%
ROIC/WACC1.58
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 Y6.67%
EPS Next 2Y9.21%
EPS Next 3Y13.82%
EPS Next 5Y17.13%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%14.24%
Revenue Next Year14.12%
Revenue Next 2Y11.03%
Revenue Next 3Y10.99%
Revenue Next 5Y10.11%
EBIT growth 1Y9.37%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year50.61%
EBIT Next 3Y27.29%
EBIT Next 5Y22.29%
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.
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 6.67% in the next year.