TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TII - US8825081040 - Common Stock
149.68 EUR
+0.1 (+0.07%)
TII gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 57 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.
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
With an excellent Return On Assets value of 14.33%, TII belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
The Return On Equity of TII (30.17%) is better than 82.46% of its industry peers.
TII's Return On Invested Capital of 16.57% is amongst the best of the industry. TII outperforms 80.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TII is significantly above the industry average of 14.06%.
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
TII's Profit Margin of 29.05% is amongst the best of the industry. TII outperforms 82.46% of its industry peers.
In the last couple of years the Profit Margin of TII has declined.
TII has a better Operating Margin (34.82%) than 84.21% of its industry peers.
TII's Operating Margin has declined in the last couple of years.
TII has a Gross Margin of 57.48%. This is in the better half of the industry: TII outperforms 77.19% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TII is creating value.
TII has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TII has less shares outstanding
TII has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.74 indicates that TII is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 8.74, TII is doing good in the industry, outperforming 63.16% 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.
TII has a Debt to FCF ratio of 6.75. This is in the lower half of the industry: TII underperforms 63.16% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that TII is somewhat dependend on debt financing.
TII has a worse Debt to Equity ratio (0.81) than 87.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 8.74 |
ROIC/WACC1.57
WACC10.56%
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.
Looking at the Current ratio, with a value of 4.45, TII belongs to the top of the industry, outperforming 80.70% of the companies in the same industry.
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.
With an excellent Quick ratio value of 2.90, TII belongs to the best of the industry, outperforming 84.21% 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.
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
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.
Based on estimates for the next years, TII will show a quite strong growth in Revenue. The Revenue will grow by 10.11% on average per year.
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
The Price/Earnings ratio is 32.19, which means the current valuation is very expensive for TII.
Based on the Price/Earnings ratio, TII is valued a bit cheaper than the industry average as 61.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.77, TII is valued a bit more expensive.
The Price/Forward Earnings ratio is 28.47, which means the current valuation is very expensive for TII.
The rest of the industry has a similar Price/Forward Earnings ratio as TII.
TII is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.19 | ||
| Fwd PE | 28.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TII.
Based on the Price/Free Cash Flow ratio, TII is valued a bit more expensive than 64.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.93 | ||
| EV/EBITDA | 21.16 |
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.
TII's earnings are expected to grow with 13.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.85
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%. Purely for dividend investing, there may be better candidates out there.
TII's Dividend Yield is rather good when compared to the industry average which is at 0.81. TII pays more dividend than 98.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TII pays a better dividend.
| 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 (12/30/2025, 7:00:00 PM)
149.68
+0.1 (+0.07%)
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 Cap136.00B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts66.82
Price Target162.68 (8.69%)
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 | 32.19 | ||
| Fwd PE | 28.47 | ||
| P/S | 9.27 | ||
| P/FCF | 76.93 | ||
| P/OCF | 23.2 | ||
| P/B | 9.62 | ||
| P/tB | 13.3 | ||
| EV/EBITDA | 21.16 |
EPS(TTM)4.65
EY3.11%
EPS(NY)5.26
Fwd EY3.51%
FCF(TTM)1.95
FCFY1.3%
OCF(TTM)6.45
OCFY4.31%
SpS16.15
BVpS15.55
TBVpS11.25
PEG (NY)4.85
PEG (5Y)N/A
Graham Number40.34
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 | 8.74 |
F-Score7
WACC10.56%
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 32.19 and the Price/Book (PB) ratio is 9.62.
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.