TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TII - US8825081040 - Common Stock
145.68 EUR
+2.52 (+1.76%)
Taking everything into account, TII scores 6 out of 10 in our fundamental rating. TII was compared to 62 industry peers in the Semiconductors & Semiconductor Equipment industry. While TII has a great profitability rating, 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.
TII had positive earnings in each of the past 5 years.
Each year in the past 5 years TII had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 14.33%, TII belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.
TII's Return On Equity of 30.17% is amongst the best of the industry. TII outperforms 80.65% of its industry peers.
TII has a Return On Invested Capital of 16.57%. This is in the better half of the industry: TII outperforms 79.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TII is significantly above the industry average of 14.81%.
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 83.87% of its industry peers.
TII's Profit Margin has declined in the last couple of years.
The Operating Margin of TII (34.82%) is better than 83.87% 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 77.42% 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.
The number of shares outstanding for TII has been reduced compared to 5 years ago.
TII has a worse debt/assets ratio than last year.
2.2 Solvency
TII has an Altman-Z score of 8.52. This indicates that TII is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.52, TII is in the better half of the industry, outperforming 67.74% 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 worse Debt to FCF ratio (6.75) than 61.29% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that TII is somewhat dependend on debt financing.
TII has a Debt to Equity ratio of 0.81. This is amonst the worse of the industry: TII underperforms 82.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 8.52 |
ROIC/WACC1.63
WACC10.19%
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.
TII has a Current ratio of 4.45. This is amongst the best in the industry. TII outperforms 83.87% 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.
TII has a Quick ratio of 2.90. This is amongst the best in the industry. TII outperforms 87.10% 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%.
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
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 Y6.67%
EPS Next 2Y9.21%
EPS Next 3Y13.82%
EPS Next 5Y17.13%
Revenue Next Year14.12%
Revenue Next 2Y11.03%
Revenue Next 3Y10.99%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.80, which means the current valuation is very expensive for TII.
TII's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. TII is around the same levels.
A Price/Forward Earnings ratio of 27.22 indicates a quite expensive valuation of TII.
The rest of the industry has a similar Price/Forward Earnings ratio as TII.
TII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.8 | ||
| Fwd PE | 27.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TII is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TII is valued a bit more expensive than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.6 | ||
| EV/EBITDA | 20.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TII has an outstanding profitability rating, which may justify a higher PE ratio.
TII's earnings are expected to grow with 13.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.62
PEG (5Y)N/A
EPS Next 2Y9.21%
EPS Next 3Y13.82%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 3.44%.
Compared to an average industry Dividend Yield of 1.14, TII pays a better dividend. On top of this TII pays more dividend than 98.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TII pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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 98.66% of its income as dividend. 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 2Y9.21%
EPS Next 3Y13.82%
FRA:TII (11/28/2025, 7:00:00 PM)
145.68
+2.52 (+1.76%)
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 Cap132.37B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts66.82
Price Target164.72 (13.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)-5.42%
PT rev (3m)-5.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.23%
EPS NY rev (1m)-2.01%
EPS NY rev (3m)-2.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.8 | ||
| Fwd PE | 27.22 | ||
| P/S | 8.87 | ||
| P/FCF | 73.6 | ||
| P/OCF | 22.2 | ||
| P/B | 9.21 | ||
| P/tB | 12.73 | ||
| EV/EBITDA | 20.29 |
EPS(TTM)4.73
EY3.25%
EPS(NY)5.35
Fwd EY3.67%
FCF(TTM)1.98
FCFY1.36%
OCF(TTM)6.56
OCFY4.5%
SpS16.43
BVpS15.82
TBVpS11.45
PEG (NY)4.62
PEG (5Y)N/A
Graham Number41.03
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 | 8.52 |
F-Score7
WACC10.19%
ROIC/WACC1.63
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 Y6.67%
EPS Next 2Y9.21%
EPS Next 3Y13.82%
EPS Next 5Y17.13%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%14.24%
Revenue Next Year14.12%
Revenue Next 2Y11.03%
Revenue Next 3Y10.99%
Revenue Next 5Y10.11%
EBIT growth 1Y9.37%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year50.61%
EBIT Next 3Y27.29%
EBIT Next 5Y22.29%
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 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 30.8 and the Price/Book (PB) ratio is 9.21.
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 6.67% in the next year.