TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - FRA:TII - US8825081040 - Common Stock
154.44 EUR
+2.22 (+1.46%)
We assign a fundamental rating of 6 out of 10 to TII. TII was compared to 56 industry peers in the Semiconductors & Semiconductor Equipment industry. TII scores excellent on profitability, but there are some minor concerns on its financial health. TII is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TII was profitable.
TII had a positive operating cash flow in the past year.
Each year in the past 5 years TII has been profitable.
TII had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.36%, TII is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
With a decent Return On Equity value of 30.57%, TII is doing good in the industry, outperforming 78.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.76%, TII is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TII is significantly above the industry average of 14.85%.
The last Return On Invested Capital (15.76%) for TII is well below the 3 year average (24.88%), which needs to be investigated, but indicates that TII 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
TII has a better Profit Margin (30.07%) than 91.07% of its industry peers.
In the last couple of years the Profit Margin of TII has declined.
With an excellent Operating Margin value of 34.89%, TII belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of TII has declined.
The Gross Margin of TII (58.03%) is better than 80.36% of its industry peers.
TII's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TII is creating value.
Compared to 1 year ago, TII has more shares outstanding
Compared to 5 years ago, TII has less shares outstanding
The debt/assets ratio for TII is higher compared to a year ago.
2.2 Solvency
TII has an Altman-Z score of 8.84. This indicates that TII is financially healthy and has little risk of bankruptcy at the moment.
TII has a better Altman-Z score (8.84) than 69.64% of its industry peers.
The Debt to FCF ratio of TII is 9.34, which is on the high side as it means it would take TII, 9.34 years of fcf income to pay off all of its debts.
TII's Debt to FCF ratio of 9.34 is on the low side compared to the rest of the industry. TII is outperformed by 64.29% of its industry peers.
TII has a Debt/Equity ratio of 0.86. This is a neutral value indicating TII is somewhat dependend on debt financing.
TII's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. TII is outperformed by 83.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 9.34 | ||
| Altman-Z | 8.84 |
ROIC/WACC1.4
WACC11.23%
2.3 Liquidity
A Current Ratio of 5.81 indicates that TII has no problem at all paying its short term obligations.
TII has a Current ratio of 5.81. This is amongst the best in the industry. TII outperforms 92.86% of its industry peers.
A Quick Ratio of 3.88 indicates that TII has no problem at all paying its short term obligations.
The Quick ratio of TII (3.88) is better than 91.07% 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 TII have decreased by -5.21% in the last year.
TII shows a small growth in Revenue. In the last year, the Revenue has grown by 3.62%.
TII shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.69% yearly.
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
TII 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 Y9.16%
EPS Next 2Y14.04%
EPS Next 3Y15.65%
EPS Next 5Y16.92%
Revenue Next Year13.95%
Revenue Next 2Y12.08%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 33.50, TII can be considered very expensive at the moment.
60.71% of the companies in the same industry are cheaper than TII, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TII to the average of the S&P500 Index (27.41), we can say TII is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 27.08, the valuation of TII can be described as expensive.
TII's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.88. TII is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 27.08 |
4.2 Price Multiples
TII's Enterprise Value to EBITDA ratio is in line with the industry average.
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 66.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 110.58 | ||
| EV/EBITDA | 22.45 |
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.
The decent profitability rating of TII may justify a higher PE ratio.
A more expensive valuation may be justified as TII's earnings are expected to grow with 15.65% in the coming years.
PEG (NY)3.66
PEG (5Y)N/A
EPS Next 2Y14.04%
EPS Next 3Y15.65%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 2.95%.
TII's Dividend Yield is rather good when compared to the industry average which is at 1.29. TII pays more dividend than 96.43% of the companies in the same industry.
TII's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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 97.71% of its income as dividend. This is not a sustainable payout ratio.
TII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.71%
EPS Next 2Y14.04%
EPS Next 3Y15.65%
FRA:TII (9/18/2025, 7:00:00 PM)
154.44
+2.22 (+1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.52%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap140.41B
Analysts68.18
Price Target173.45 (12.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend4.5
Dividend Growth(5Y)10.46%
DP97.71%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)-2.03%
PT rev (3m)9.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.02%
EPS NY rev (1m)0.8%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 27.08 | ||
| P/S | 9.97 | ||
| P/FCF | 110.58 | ||
| P/OCF | 25.81 | ||
| P/B | 10.13 | ||
| P/tB | 14.09 | ||
| EV/EBITDA | 22.45 |
EPS(TTM)4.61
EY2.98%
EPS(NY)5.7
Fwd EY3.69%
FCF(TTM)1.4
FCFY0.9%
OCF(TTM)5.98
OCFY3.87%
SpS15.5
BVpS15.24
TBVpS10.96
PEG (NY)3.66
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 | 8.84 |
F-Score6
WACC11.23%
ROIC/WACC1.4
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 Y9.16%
EPS Next 2Y14.04%
EPS Next 3Y15.65%
EPS Next 5Y16.92%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%16.38%
Revenue Next Year13.95%
Revenue Next 2Y12.08%
Revenue Next 3Y11.16%
Revenue Next 5Y10.29%
EBIT growth 1Y-0.29%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year50.98%
EBIT Next 3Y27.48%
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%