TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
FRA:TII - Deutsche Boerse Ag - US8825081040 - Common Stock - Currency: EUR
Taking everything into account, TII scores 5 out of 10 in our fundamental rating. TII was compared to 58 industry peers in the Semiconductors & Semiconductor Equipment industry. While TII has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, TII is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TII was profitable.
TII had a positive operating cash flow in the past year.
TII had positive earnings in each of the past 5 years.
Each year in the past 5 years TII had a positive operating cash flow.
1.2 Ratios
TII has a Return On Assets of 13.44%. This is in the better half of the industry: TII outperforms 65.52% of its industry peers.
Looking at the Return On Equity, with a value of 28.24%, TII is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.73%, TII is in the better half of the industry, outperforming 63.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TII is significantly above the industry average of 16.14%.
The 3 year average ROIC (24.88%) for TII is well above the current ROIC(14.73%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 28.24% | ||
| ROIC | 14.73% |
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
TII has a better Profit Margin (30.52%) than 94.83% of its industry peers.
In the last couple of years the Profit Margin of TII has declined.
TII has a better Operating Margin (34.15%) than 93.10% of its industry peers.
TII's Operating Margin has declined in the last couple of years.
The Gross Margin of TII (58.14%) is better than 81.03% of its industry peers.
In the last couple of years the Gross Margin of TII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.15% | ||
| PM (TTM) | 30.52% | ||
| GM | 58.14% |
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 TII is creating value.
Compared to 1 year ago, TII has more shares outstanding
Compared to 5 years ago, TII has less shares outstanding
TII has a worse debt/assets ratio than last year.
2.2 Solvency
TII has an Altman-Z score of 8.85. This indicates that TII is financially healthy and has little risk of bankruptcy at the moment.
TII has a Altman-Z score of 8.85. This is amongst the best in the industry. TII outperforms 84.48% of its industry peers.
TII has a debt to FCF ratio of 9.08. This is a negative value and a sign of low solvency as TII would need 9.08 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.08, TII is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
TII has a Debt/Equity ratio of 0.76. This is a neutral value indicating TII is somewhat dependend on debt financing.
TII has a Debt to Equity ratio of 0.76. This is amonst the worse of the industry: TII underperforms 81.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.08 | ||
| Altman-Z | 8.85 |
ROIC/WACC1.33
WACC11.11%
2.3 Liquidity
TII has a Current Ratio of 4.12. This indicates that TII is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TII (4.12) is better than 82.76% of its industry peers.
A Quick Ratio of 2.88 indicates that TII has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.88, TII is doing good in the industry, outperforming 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.12 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
TII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.49%.
The Revenue for TII has decreased by -10.72% in the past year. This is quite bad
TII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.69% yearly.
EPS 1Y (TTM)-26.49%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%-12.75%
Revenue 1Y (TTM)-10.72%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%-1.72%
3.2 Future
Based on estimates for the next years, TII will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.55% on average per year.
Based on estimates for the next years, TII will show a quite strong growth in Revenue. The Revenue will grow by 10.33% on average per year.
EPS Next Y5.88%
EPS Next 2Y16.91%
EPS Next 3Y17.56%
EPS Next 5Y18.55%
Revenue Next Year10.34%
Revenue Next 2Y11.9%
Revenue Next 3Y11.56%
Revenue Next 5Y10.33%
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
TII is valuated quite expensively with a Price/Earnings ratio of 35.90.
Based on the Price/Earnings ratio, TII is valued a bit more expensive than the industry average as 75.86% of the companies are valued more cheaply.
TII's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.35.
TII is valuated quite expensively with a Price/Forward Earnings ratio of 33.90.
Based on the Price/Forward Earnings ratio, TII is valued a bit more expensive than 79.31% of the companies in the same industry.
TII is valuated expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.9 | ||
| Fwd PE | 33.9 |
4.2 Price Multiples
TII's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TII is more expensive than 67.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TII indicates a slightly more expensive valuation: TII is more expensive than 67.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 113.17 | ||
| EV/EBITDA | 24.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TII does not grow enough to justify the current Price/Earnings ratio.
TII has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TII's earnings are expected to grow with 17.56% in the coming years.
PEG (NY)6.1
PEG (5Y)N/A
EPS Next 2Y16.91%
EPS Next 3Y17.56%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 2.87%.
Compared to an average industry Dividend Yield of 1.50, TII pays a better dividend. On top of this TII pays more dividend than 94.83% of the companies listed in the same industry.
TII's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
On average, the dividend of TII grows each year by 10.46%, which is quite nice.
Dividend Growth(5Y)10.46%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
TII pays out 100.44% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.44%
EPS Next 2Y16.91%
EPS Next 3Y17.56%
FRA:TII (3/7/2025, 7:00:00 PM)
171.6
-5.44 (-3.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.44%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap156.14B
Analysts66.84
Price Target198.18 (15.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend4.85
Dividend Growth(5Y)10.46%
DP100.44%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.33%
Min EPS beat(2)5.79%
Max EPS beat(2)6.88%
EPS beat(4)4
Avg EPS beat(4)6.84%
Min EPS beat(4)3.53%
Max EPS beat(4)11.19%
EPS beat(8)8
Avg EPS beat(8)4.62%
EPS beat(12)12
Avg EPS beat(12)5.52%
EPS beat(16)15
Avg EPS beat(16)6.77%
Revenue beat(2)1
Avg Revenue beat(2)1.07%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)2.38%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)2.38%
Revenue beat(8)3
Avg Revenue beat(8)-0.07%
Revenue beat(12)7
Avg Revenue beat(12)1.23%
Revenue beat(16)10
Avg Revenue beat(16)2.01%
PT rev (1m)-0.95%
PT rev (3m)-1.04%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-10.27%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)-7.45%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.9 | ||
| Fwd PE | 33.9 | ||
| P/S | 10.84 | ||
| P/FCF | 113.17 | ||
| P/OCF | 26.83 | ||
| P/B | 10.03 | ||
| P/tB | 13.8 | ||
| EV/EBITDA | 24.73 |
EPS(TTM)4.78
EY2.79%
EPS(NY)5.06
Fwd EY2.95%
FCF(TTM)1.52
FCFY0.88%
OCF(TTM)6.4
OCFY3.73%
SpS15.83
BVpS17.11
TBVpS12.43
PEG (NY)6.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.44% | ||
| ROE | 28.24% | ||
| ROCE | 16.76% | ||
| ROIC | 14.73% | ||
| ROICexc | 19.33% | ||
| ROICexgc | 23.87% | ||
| OM | 34.15% | ||
| PM (TTM) | 30.52% | ||
| GM | 58.14% | ||
| FCFM | 9.58% |
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-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 9.08 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 305.06% | ||
| Cap/Sales | 30.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.29% | ||
| Profit Quality | 31.38% | ||
| Current Ratio | 4.12 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z | 8.85 |
F-Score4
WACC11.11%
ROIC/WACC1.33
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)-26.49%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%-12.75%
EPS Next Y5.88%
EPS Next 2Y16.91%
EPS Next 3Y17.56%
EPS Next 5Y18.55%
Revenue 1Y (TTM)-10.72%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%-1.72%
Revenue Next Year10.34%
Revenue Next 2Y11.9%
Revenue Next 3Y11.56%
Revenue Next 5Y10.33%
EBIT growth 1Y-27.14%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year49.72%
EBIT Next 3Y27.3%
EBIT Next 5Y22.78%
FCF growth 1Y11.05%
FCF growth 3Y-38.03%
FCF growth 5Y-23.72%
OCF growth 1Y-1.59%
OCF growth 3Y-10.31%
OCF growth 5Y-1.02%