TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TII - US8825081040 - Common Stock
162.04 EUR
-0.44 (-0.27%)
Taking everything into account, TII scores 6 out of 10 in our fundamental rating. TII was compared to 71 industry peers in the Semiconductors & Semiconductor Equipment industry. While TII belongs to the best of the industry regarding profitability, 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
TII had positive earnings in the past year.
TII had a positive operating cash flow in the past year.
TII had positive earnings in each of the past 5 years.
In the past 5 years TII always reported a positive cash flow from operatings.
1.2 Ratios
TII's Return On Assets of 14.33% is amongst the best of the industry. TII outperforms 80.28% of its industry peers.
TII has a Return On Equity of 30.17%. This is amongst the best in the industry. TII outperforms 81.69% of its industry peers.
TII's Return On Invested Capital of 16.57% is fine compared to the rest of the industry. TII outperforms 78.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TII is significantly above the industry average of 13.85%.
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
TII's Profit Margin of 29.05% is amongst the best of the industry. TII outperforms 84.51% of its industry peers.
In the last couple of years the Profit Margin of TII has declined.
TII has a Operating Margin of 34.82%. This is amongst the best in the industry. TII outperforms 87.32% of its industry peers.
In the last couple of years the Operating Margin of TII has declined.
TII's Gross Margin of 57.48% is fine compared to the rest of the industry. TII outperforms 77.46% 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
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
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
TII has an Altman-Z score of 9.14. This indicates that TII is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 9.14, TII is doing good in the industry, outperforming 67.61% of the companies in the same industry.
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.
TII's Debt to FCF ratio of 6.75 is on the low side compared to the rest of the industry. TII is outperformed by 64.79% 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 90.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 9.14 |
ROIC/WACC1.56
WACC10.64%
2.3 Liquidity
A Current Ratio of 4.45 indicates that TII has no problem at all paying its short term obligations.
The Current ratio of TII (4.45) is better than 81.69% of its industry peers.
A Quick Ratio of 2.90 indicates that TII has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.90, TII belongs to the top of the industry, outperforming 84.51% 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.
Looking at the last year, TII shows a quite strong growth in Revenue. The Revenue has grown by 9.90% in the last year.
The Revenue has been growing slightly by 1.69% on average over the past years.
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 17.13% on average over the next years. This is quite good.
TII is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.26% 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 5Y10.26%
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
Based on the Price/Earnings ratio of 34.62, the valuation of TII can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TII is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.25, TII is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 30.63, the valuation of TII can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TII.
TII's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.62 | ||
| Fwd PE | 30.63 |
4.2 Price Multiples
TII's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TII is valued a bit more expensive than the industry average as 64.79% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.76 | ||
| EV/EBITDA | 22.71 |
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 13.64% in the coming years.
PEG (NY)5.22
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 3.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.79, TII pays a better dividend. On top of this TII pays more dividend than 95.77% of the companies listed in the same industry.
TII's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
The dividend of TII is nicely growing with an annual growth rate of 10.46%!
Dividend Growth(5Y)10.46%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
TII pays out 98.66% 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.
DP98.66%
EPS Next 2Y9.18%
EPS Next 3Y13.64%
FRA:TII (1/12/2026, 7:00:00 PM)
162.04
-0.44 (-0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.72%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap147.23B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts65.91
Price Target162.68 (0.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend4.53
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)-0.04%
PT rev (3m)-6.59%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-9.34%
EPS NY rev (1m)-0.05%
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)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.62 | ||
| Fwd PE | 30.63 | ||
| P/S | 9.97 | ||
| P/FCF | 82.76 | ||
| P/OCF | 24.96 | ||
| P/B | 10.35 | ||
| P/tB | 14.31 | ||
| EV/EBITDA | 22.71 |
EPS(TTM)4.68
EY2.89%
EPS(NY)5.29
Fwd EY3.27%
FCF(TTM)1.96
FCFY1.21%
OCF(TTM)6.49
OCFY4.01%
SpS16.25
BVpS15.65
TBVpS11.32
PEG (NY)5.22
PEG (5Y)N/A
Graham Number40.6
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 | 9.14 |
F-Score7
WACC10.64%
ROIC/WACC1.56
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 5Y10.26%
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
What is the ChartMill fundamental rating of TEXAS INSTRUMENTS INC (TII.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TII.DE.
What is the valuation status for TII 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.
Can you provide the PE and PB ratios for TII stock?
The Price/Earnings (PE) ratio for TEXAS INSTRUMENTS INC (TII.DE) is 34.62 and the Price/Book (PB) ratio is 10.35.
Can you provide the expected EPS growth for TII stock?
The Earnings per Share (EPS) of TEXAS INSTRUMENTS INC (TII.DE) is expected to grow by 6.63% in the next year.