TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TII - US8825081040 - Common Stock
150.44 EUR
-1.74 (-1.14%)
We assign a fundamental rating of 6 out of 10 to TII. TII was compared to 61 industry peers in the Semiconductors & Semiconductor Equipment industry. TII scores excellent on profitability, but 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.
Each year in the past 5 years TII had a positive operating cash flow.
1.2 Ratios
TII's Return On Assets of 14.33% is amongst the best of the industry. TII outperforms 83.61% of its industry peers.
With an excellent Return On Equity value of 30.17%, TII belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.57%, TII belongs to the top of the industry, outperforming 80.33% 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 14.58%.
The last Return On Invested Capital (16.57%) 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 | 14.33% | ||
| 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 81.97% of the companies in the same industry.
In the last couple of years the Profit Margin of TII has declined.
TII's Operating Margin of 34.82% is amongst the best of the industry. TII outperforms 85.25% of its industry peers.
In the last couple of years the Operating Margin of TII has declined.
TII has a Gross Margin of 57.48%. This is in the better half of the industry: TII outperforms 78.69% of its industry peers.
In the last couple of years the Gross Margin of TII 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
TII has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, TII has more shares outstanding
Compared to 5 years ago, TII has less shares outstanding
Compared to 1 year ago, TII has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.78 indicates that TII is not in any danger for bankruptcy at the moment.
TII has a better Altman-Z score (8.78) than 65.57% of its industry peers.
The Debt to FCF ratio of TII is 6.75, which is on the high side as it means it would take TII, 6.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TII (6.75) is worse than 63.93% of its industry peers.
TII has a Debt/Equity ratio of 0.81. This is a neutral value indicating TII is somewhat dependend on debt financing.
The Debt to Equity ratio of TII (0.81) is worse than 88.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 8.78 |
ROIC/WACC1.57
WACC10.55%
2.3 Liquidity
TII has a Current Ratio of 4.45. This indicates that TII is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TII (4.45) is better than 81.97% of its industry peers.
TII has a Quick Ratio of 2.90. This indicates that TII is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TII (2.90) is better than 85.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 2.9 |
3. Growth
3.1 Past
TII shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.67%.
The Revenue has grown by 9.90% in the past year. This is quite good.
TII 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
TII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.13% yearly.
TII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.11% yearly.
EPS Next Y6.63%
EPS Next 2Y9.18%
EPS Next 3Y13.64%
EPS Next 5Y17.13%
Revenue Next Year14.1%
Revenue Next 2Y10.99%
Revenue Next 3Y10.88%
Revenue Next 5Y10.11%
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
With a Price/Earnings ratio of 32.42, TII can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TII is valued a bit cheaper than 60.66% of the companies in the same industry.
TII's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.57.
The Price/Forward Earnings ratio is 28.66, which means the current valuation is very expensive for TII.
TII's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, TII is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.42 | ||
| Fwd PE | 28.66 |
4.2 Price Multiples
TII's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TII is valued a bit more expensive than the industry average as 67.21% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.46 | ||
| EV/EBITDA | 21.31 |
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 TII may justify a higher PE ratio.
A more expensive valuation may be justified as TII's earnings are expected to grow with 13.64% in the coming years.
PEG (NY)4.89
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 3.21%.
TII's Dividend Yield is rather good when compared to the industry average which is at 0.77. TII pays more dividend than 98.36% of the companies in the same industry.
TII's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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 2Y9.18%
EPS Next 3Y13.64%
FRA:TII (12/23/2025, 7:00:00 PM)
150.44
-1.74 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.68%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap136.69B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts66.82
Price Target162.68 (8.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend4.47
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)-1.24%
PT rev (3m)-6.21%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-9.34%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.42 | ||
| Fwd PE | 28.66 | ||
| P/S | 9.33 | ||
| P/FCF | 77.46 | ||
| P/OCF | 23.36 | ||
| P/B | 9.69 | ||
| P/tB | 13.4 | ||
| EV/EBITDA | 21.31 |
EPS(TTM)4.64
EY3.08%
EPS(NY)5.25
Fwd EY3.49%
FCF(TTM)1.94
FCFY1.29%
OCF(TTM)6.44
OCFY4.28%
SpS16.12
BVpS15.52
TBVpS11.23
PEG (NY)4.89
PEG (5Y)N/A
Graham Number40.26
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 | 8.78 |
F-Score7
WACC10.55%
ROIC/WACC1.57
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 Y6.63%
EPS Next 2Y9.18%
EPS Next 3Y13.64%
EPS Next 5Y17.13%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%14.24%
Revenue Next Year14.1%
Revenue Next 2Y10.99%
Revenue Next 3Y10.88%
Revenue Next 5Y10.11%
EBIT growth 1Y9.37%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year48.66%
EBIT Next 3Y25.46%
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 / 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 2 / 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 32.42 and the Price/Book (PB) ratio is 9.69.
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 6.63% in the next year.