TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TII - US8825081040 - Common Stock
154.78 EUR
-0.82 (-0.53%)
Overall TII gets a fundamental rating of 6 out of 10. We evaluated TII against 65 industry peers in the Semiconductors & Semiconductor Equipment industry. TII has an excellent profitability rating, but there are some minor concerns on its financial health. TII is valied quite expensively at the moment, while it does show a decent growth rate.
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
With an excellent Return On Assets value of 14.33%, TII belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 30.17%, TII is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
TII's Return On Invested Capital of 16.57% is fine compared to the rest of the industry. TII outperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TII is significantly above the industry average of 15.14%.
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 fine compared to the rest of the industry. TII outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of TII has declined.
The Operating Margin of TII (34.82%) is better than 84.62% 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 78.46% 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.
Compared to 1 year ago, TII has more shares outstanding
Compared to 5 years ago, TII has less shares outstanding
TII has a worse debt/assets ratio than last year.
2.2 Solvency
TII has an Altman-Z score of 8.90. 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 8.90, TII is in the better half of the industry, outperforming 67.69% 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 in line with its industry, outperforming 41.54% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that TII is somewhat dependend on debt financing.
The Debt to Equity ratio of TII (0.81) is worse than 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 8.9 |
ROIC/WACC1.6
WACC10.38%
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 better Current ratio (4.45) than 81.54% 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 84.62% of its industry peers.
| 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.
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
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 10.11% yearly.
EPS Next Y6.69%
EPS Next 2Y9.24%
EPS Next 3Y13.85%
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.
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 32.93, the valuation of TII can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TII.
Compared to an average S&P500 Price/Earnings ratio of 26.59, TII is valued a bit more expensive.
The Price/Forward Earnings ratio is 29.08, 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 23.80, TII is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.93 | ||
| Fwd PE | 29.08 |
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 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.68 | ||
| EV/EBITDA | 21.74 |
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.
The decent 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 13.85% in the coming years.
PEG (NY)4.93
PEG (5Y)N/A
EPS Next 2Y9.24%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, TII has a reasonable but not impressive dividend return.
TII's Dividend Yield is rather good when compared to the industry average which is at 1.18. TII pays more dividend than 98.46% of the companies in the same industry.
TII's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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.
TII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.66%
EPS Next 2Y9.24%
EPS Next 3Y13.85%
FRA:TII (12/10/2025, 7:00:00 PM)
154.78
-0.82 (-0.53%)
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 Cap140.64B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts66.82
Price Target162.75 (5.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend4.52
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)-1.3%
PT rev (3m)-6.23%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-9.17%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.93 | ||
| Fwd PE | 29.08 | ||
| P/S | 9.48 | ||
| P/FCF | 78.68 | ||
| P/OCF | 23.73 | ||
| P/B | 9.84 | ||
| P/tB | 13.61 | ||
| EV/EBITDA | 21.74 |
EPS(TTM)4.7
EY3.04%
EPS(NY)5.32
Fwd EY3.44%
FCF(TTM)1.97
FCFY1.27%
OCF(TTM)6.52
OCFY4.21%
SpS16.33
BVpS15.72
TBVpS11.38
PEG (NY)4.93
PEG (5Y)N/A
Graham Number40.78
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 | 8.9 |
F-Score7
WACC10.38%
ROIC/WACC1.6
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 Y6.69%
EPS Next 2Y9.24%
EPS Next 3Y13.85%
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 Year48.79%
EBIT Next 3Y25.55%
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 7 / 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 32.93 and the Price/Book (PB) ratio is 9.84.
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 6.69% in the next year.