TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - FRA:TII - US8825081040 - Common Stock
138.68 EUR
+0.12 (+0.09%)
We assign a fundamental rating of 6 out of 10 to TII. 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
TII had positive earnings in the past year.
In the past year TII had a positive cash flow from operations.
In the past 5 years TII has always been profitable.
In the past 5 years TII always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TII (14.33%) is better than 79.31% of its industry peers.
TII's Return On Equity of 30.17% is amongst the best of the industry. TII outperforms 81.03% of its industry peers.
TII has a Return On Invested Capital of 16.57%. This is amongst the best in the industry. TII outperforms 81.03% of its industry peers.
TII had an Average Return On Invested Capital over the past 3 years of 24.88%. This is significantly above the industry average of 14.08%.
The 3 year average ROIC (24.88%) for TII 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%, TII belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
TII's Profit Margin has declined in the last couple of years.
TII's Operating Margin of 34.82% is amongst the best of the industry. TII outperforms 84.48% of its industry peers.
In the last couple of years the Operating Margin of TII has declined.
Looking at the Gross Margin, with a value of 57.48%, TII is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
TII's Gross Margin has declined in the last couple of years.
| 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
TII 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 TII has been increased compared to 1 year ago.
TII has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TII has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.25 indicates that TII is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.25, TII is in the better half of the industry, outperforming 67.24% of the companies in the same industry.
TII has a debt to FCF ratio of 6.75. This is a slightly negative value and a sign of low solvency as TII would need 6.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.75, TII is doing worse than 60.34% of the companies in the same industry.
TII has a Debt/Equity ratio of 0.81. This is a neutral value indicating TII is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, TII is doing worse than 84.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 8.25 |
ROIC/WACC1.42
WACC11.67%
2.3 Liquidity
A Current Ratio of 4.45 indicates that TII has no problem at all paying its short term obligations.
TII's Current ratio of 4.45 is amongst the best of the industry. TII outperforms 86.21% of its industry peers.
A Quick Ratio of 2.90 indicates that TII has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.90, TII belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
| 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.
The Revenue has grown by 9.90% in the past year. This is quite good.
Measured over the past years, TII 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
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 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 29.13, the valuation of TII can be described as expensive.
Based on the Price/Earnings ratio, TII is valued a bit cheaper than 62.07% of the companies in the same industry.
TII is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.79 indicates a rather expensive valuation of TII.
TII's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.27. TII is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 23.79 |
4.2 Price Multiples
TII's Enterprise Value to EBITDA ratio is in line with the industry average.
TII's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.65 | ||
| EV/EBITDA | 19.23 |
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 an outstanding 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 15.48% in the coming years.
PEG (NY)3.29
PEG (5Y)N/A
EPS Next 2Y13.6%
EPS Next 3Y15.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.54%, TII has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.10, TII pays a better dividend. On top of this TII pays more dividend than 100.00% of the companies listed 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 | 3.54% |
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
98.66% of the earnings are spent on dividend by TII. This is not a sustainable payout ratio.
The dividend of TII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.66%
EPS Next 2Y13.6%
EPS Next 3Y15.48%
FRA:TII (11/5/2025, 11:58:01 AM)
138.68
+0.12 (+0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.03%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap126.08B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts68.18
Price Target164.9 (18.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend4.56
Dividend Growth(5Y)10.46%
DP98.66%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)-4.93%
PT rev (3m)-2.62%
EPS NQ rev (1m)-9.17%
EPS NQ rev (3m)-9.23%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.13 | ||
| Fwd PE | 23.79 | ||
| P/S | 8.39 | ||
| P/FCF | 69.65 | ||
| P/OCF | 21.01 | ||
| P/B | 8.71 | ||
| P/tB | 12.05 | ||
| EV/EBITDA | 19.23 |
EPS(TTM)4.76
EY3.43%
EPS(NY)5.83
Fwd EY4.2%
FCF(TTM)1.99
FCFY1.44%
OCF(TTM)6.6
OCFY4.76%
SpS16.53
BVpS15.92
TBVpS11.51
PEG (NY)3.29
PEG (5Y)N/A
Graham Number41.29
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 | 8.25 |
F-Score7
WACC11.67%
ROIC/WACC1.42
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 / TII.DE FAQ
Can you provide the ChartMill fundamental rating for TEXAS INSTRUMENTS INC?
ChartMill assigns a fundamental rating of 6 / 10 to TII.DE.
What is the valuation status of TEXAS INSTRUMENTS INC (TII.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to TEXAS INSTRUMENTS INC (TII.DE). This can be considered as Overvalued.
Can you provide the profitability details for TEXAS INSTRUMENTS INC?
TEXAS INSTRUMENTS INC (TII.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TEXAS INSTRUMENTS INC (TII.DE) stock?
The Price/Earnings (PE) ratio for TEXAS INSTRUMENTS INC (TII.DE) is 29.13 and the Price/Book (PB) ratio is 8.71.
What is the earnings growth outlook for TEXAS INSTRUMENTS INC?
The Earnings per Share (EPS) of TEXAS INSTRUMENTS INC (TII.DE) is expected to grow by 8.86% in the next year.