TEXAS INSTRUMENTS INC (TXN) Stock Fundamental Analysis
USA - NASDAQ:TXN - US8825081040 - Common Stock
181.76 USD
-0.05 (-0.03%)
Taking everything into account, TXN scores 6 out of 10 in our fundamental rating. TXN was compared to 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 is not valued too expensively and it also shows a decent growth rate. TXN also has an excellent dividend rating. This makes TXN very considerable for dividend investing!
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.
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.
1.2 Ratios
The Return On Assets of TXN (14.36%) is better than 87.50% of its industry peers.
The Return On Equity of TXN (30.57%) is better than 91.07% of its industry peers.
TXN's Return On Invested Capital of 15.76% is amongst the best of the industry. TXN outperforms 91.07% of its industry peers.
TXN had an Average Return On Invested Capital over the past 3 years of 24.88%. This is significantly above the industry average of 10.95%.
The last Return On Invested Capital (15.76%) 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 | 14.36% | ||
| ROE | 30.57% | ||
| ROIC | 15.76% |
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
TXN has a better Profit Margin (30.07%) than 91.96% of its industry peers.
In the last couple of years the Profit Margin of TXN has declined.
TXN has a better Operating Margin (34.89%) than 92.86% of its industry peers.
In the last couple of years the Operating Margin of TXN has declined.
TXN has a better Gross Margin (58.03%) 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 | 34.89% | ||
| PM (TTM) | 30.07% | ||
| GM | 58.03% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 8.88 indicates that TXN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.88, TXN is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Debt to FCF ratio of TXN is 9.34, which is on the high side as it means it would take TXN, 9.34 years of fcf income to pay off all of its debts.
TXN has a Debt to FCF ratio (9.34) which is in line with its industry peers.
TXN has a Debt/Equity ratio of 0.86. This is a neutral value indicating TXN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, TXN is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.34 | ||
| Altman-Z | 8.88 |
ROIC/WACC1.37
WACC11.53%
2.3 Liquidity
TXN has a Current Ratio of 5.81. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.81, TXN belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
TXN has a Quick Ratio of 3.88. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
TXN has a better Quick ratio (3.88) than 72.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.81 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
The earnings per share for TXN have decreased by -5.21% in the last year.
The Revenue has been growing slightly by 3.62% in the past year.
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)-5.21%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%15.57%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%16.38%
3.2 Future
The Earnings Per Share is expected to grow by 16.92% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.29% on average over the next years. This is quite good.
EPS Next Y9.15%
EPS Next 2Y14.07%
EPS Next 3Y15.54%
EPS Next 5Y16.92%
Revenue Next Year13.94%
Revenue Next 2Y12.1%
Revenue Next 3Y11.18%
Revenue Next 5Y10.29%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.29, the valuation of TXN can be described as expensive.
72.32% 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 27.90. TXN is around the same levels.
Based on the Price/Forward Earnings ratio of 26.91, the valuation of TXN can be described as expensive.
66.96% of the companies in the same industry are more expensive than TXN, based on the Price/Forward Earnings ratio.
TXN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | 26.91 |
4.2 Price Multiples
TXN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TXN is cheaper than 70.54% of the companies in the same industry.
TXN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.94 | ||
| EV/EBITDA | 22.65 |
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 15.54% in the coming years.
PEG (NY)3.64
PEG (5Y)N/A
EPS Next 2Y14.07%
EPS Next 3Y15.54%
5. Dividend
5.1 Amount
TXN has a Yearly Dividend Yield of 2.98%.
Compared to an average industry Dividend Yield of 2.15, 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 a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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
97.71% 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.
DP97.71%
EPS Next 2Y14.07%
EPS Next 3Y15.54%
NASDAQ:TXN (10/7/2025, 9:45:03 AM)
181.76
-0.05 (-0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.03%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change-0.01%
Market Cap165.25B
Analysts68.18
Price Target204.63 (12.58%)
Short Float %1.7%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend5.27
Dividend Growth(5Y)10.46%
DP97.71%
Div Incr Years21
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.93%
Min EPS beat(2)3.14%
Max EPS beat(2)18.72%
EPS beat(4)4
Avg EPS beat(4)8.63%
Min EPS beat(4)3.14%
Max EPS beat(4)18.72%
EPS beat(8)8
Avg EPS beat(8)6.33%
EPS beat(12)12
Avg EPS beat(12)5.55%
EPS beat(16)15
Avg EPS beat(16)6.47%
Revenue beat(2)2
Avg Revenue beat(2)2.05%
Min Revenue beat(2)1.09%
Max Revenue beat(2)3.01%
Revenue beat(4)3
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-0.24%
Max Revenue beat(4)3.01%
Revenue beat(8)4
Avg Revenue beat(8)0.2%
Revenue beat(12)7
Avg Revenue beat(12)0.38%
Revenue beat(16)10
Avg Revenue beat(16)1.6%
PT rev (1m)-0.2%
PT rev (3m)11.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | 26.91 | ||
| P/S | 9.91 | ||
| P/FCF | 109.94 | ||
| P/OCF | 25.66 | ||
| P/B | 10.07 | ||
| P/tB | 14.01 | ||
| EV/EBITDA | 22.65 |
EPS(TTM)5.46
EY3%
EPS(NY)6.75
Fwd EY3.72%
FCF(TTM)1.65
FCFY0.91%
OCF(TTM)7.08
OCFY3.9%
SpS18.34
BVpS18.04
TBVpS12.97
PEG (NY)3.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.36% | ||
| ROE | 30.57% | ||
| ROCE | 17.93% | ||
| ROIC | 15.76% | ||
| ROICexc | 18.88% | ||
| ROICexgc | 22.75% | ||
| OM | 34.89% | ||
| PM (TTM) | 30.07% | ||
| GM | 58.03% | ||
| FCFM | 9.01% |
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%
ROICexcg growth 3Y-37.97%
ROICexcg 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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.34 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 280.14% | ||
| Cap/Sales | 29.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.95% | ||
| Profit Quality | 29.97% | ||
| Current Ratio | 5.81 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 8.88 |
F-Score6
WACC11.53%
ROIC/WACC1.37
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)-5.21%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%15.57%
EPS Next Y9.15%
EPS Next 2Y14.07%
EPS Next 3Y15.54%
EPS Next 5Y16.92%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%16.38%
Revenue Next Year13.94%
Revenue Next 2Y12.1%
Revenue Next 3Y11.18%
Revenue Next 5Y10.29%
EBIT growth 1Y-0.29%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year50.61%
EBIT Next 3Y27.29%
EBIT Next 5Y22.04%
FCF growth 1Y-52.77%
FCF growth 3Y-38.03%
FCF growth 5Y-23.72%
OCF growth 1Y-12.6%
OCF growth 3Y-10.31%
OCF growth 5Y-1.02%