TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - FRA:TII - US8825081040 - Common Stock
136.14 EUR
+1.58 (+1.17%)
Overall TII gets a fundamental rating of 6 out of 10. We evaluated TII against 63 industry peers in the Semiconductors & Semiconductor Equipment industry. TII has an excellent profitability rating, 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 82.54% of its industry peers.
TII has a Return On Equity of 30.17%. This is amongst the best in the industry. TII outperforms 80.95% 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 79.37% of its industry peers.
TII had an Average Return On Invested Capital over the past 3 years of 24.88%. This 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 has a better Profit Margin (29.05%) than 84.13% 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 84.13% of its industry peers.
TII's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 57.48%, TII is doing good in the industry, outperforming 79.37% 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
TII has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TII is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.15 indicates that TII is not in any danger for bankruptcy at the moment.
TII has a better Altman-Z score (8.15) than 66.67% of its industry peers.
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 61.90% 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.
Looking at the Debt to Equity ratio, with a value of 0.81, TII is doing worse than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 8.15 |
ROIC/WACC1.57
WACC10.53%
2.3 Liquidity
A Current Ratio of 4.45 indicates that TII has no problem at all paying its short term obligations.
TII's Current ratio of 4.45 is amongst the best of the industry. TII outperforms 84.13% of its industry peers.
A Quick Ratio of 2.90 indicates that TII has no problem at all paying its short term obligations.
TII's Quick ratio of 2.90 is amongst the best of the industry. TII outperforms 84.13% 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.
Measured over the past years, TII shows a small growth in Revenue. The Revenue has been growing by 1.69% on average per year.
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.
The Revenue is expected to grow by 10.11% on average over the next years. This is quite good.
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
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.
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
TII is valuated quite expensively with a Price/Earnings ratio of 28.84.
TII's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.46. TII is around the same levels.
Based on the Price/Forward Earnings ratio of 25.49, the valuation of TII can be described as expensive.
TII's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.39, TII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.84 | ||
| Fwd PE | 25.49 |
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 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.97 | ||
| EV/EBITDA | 18.86 |
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.
A more expensive valuation may be justified as TII's earnings are expected to grow with 13.82% in the coming years.
PEG (NY)4.33
PEG (5Y)N/A
EPS Next 2Y9.21%
EPS Next 3Y13.82%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 3.50%.
In the last 3 months the price of TII has falen by -22.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TII's Dividend Yield is rather good when compared to the industry average which is at 1.18. TII pays more dividend than 100.00% of the companies in the same industry.
TII's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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.
TII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.66%
EPS Next 2Y9.21%
EPS Next 3Y13.82%
FRA:TII (11/19/2025, 5:04:04 PM)
136.14
+1.58 (+1.17%)
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 Cap123.77B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts66.82
Price Target160.92 (18.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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)-7.61%
PT rev (3m)-9.11%
EPS NQ rev (1m)-9.12%
EPS NQ rev (3m)-9.23%
EPS NY rev (1m)-2.27%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)-1.86%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.84 | ||
| Fwd PE | 25.49 | ||
| P/S | 8.31 | ||
| P/FCF | 68.97 | ||
| P/OCF | 20.8 | ||
| P/B | 8.63 | ||
| P/tB | 11.93 | ||
| EV/EBITDA | 18.86 |
EPS(TTM)4.72
EY3.47%
EPS(NY)5.34
Fwd EY3.92%
FCF(TTM)1.97
FCFY1.45%
OCF(TTM)6.55
OCFY4.81%
SpS16.39
BVpS15.78
TBVpS11.42
PEG (NY)4.33
PEG (5Y)N/A
Graham Number40.94
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 | 8.15 |
F-Score7
WACC10.53%
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 Y6.67%
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 28.84 and the Price/Book (PB) ratio is 8.63.
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.