TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TII - US8825081040 - Common Stock
157.88 EUR
+3.16 (+2.04%)
We assign a fundamental rating of 6 out of 10 to TII. TII was compared to 65 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 valied quite expensively at the moment, while 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.
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 has a better Return On Assets (14.33%) than 82.26% of its industry peers.
With an excellent Return On Equity value of 30.17%, TII belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
The Return On Invested Capital of TII (16.57%) is better than 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 15.20%.
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 has a Profit Margin of 29.05%. This is amongst the best in the industry. TII outperforms 80.65% 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.
The Gross Margin of TII (57.48%) is better than 77.42% 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.
The number of shares outstanding for TII has been increased compared to 1 year ago.
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 8.98. This indicates that TII is financially healthy and has little risk of bankruptcy at the moment.
TII has a better Altman-Z score (8.98) than 67.74% 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.
The Debt to FCF ratio of TII (6.75) is worse 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 | 8.98 |
ROIC/WACC1.6
WACC10.33%
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 83.87% of the companies in the same industry.
A Quick Ratio of 2.90 indicates that TII has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.90, TII belongs to the best of the industry, outperforming 87.10% 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.
TII shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.90%.
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
Based on estimates for the next years, TII will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.13% on average per year.
The Revenue is expected to grow by 10.11% on average over the next years. This is quite good.
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
The Price/Earnings ratio is 33.59, which means the current valuation is very expensive for TII.
The rest of the industry has a similar Price/Earnings ratio as TII.
TII's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.49.
A Price/Forward Earnings ratio of 29.69 indicates a quite expensive valuation of TII.
The rest of the industry has a similar Price/Forward Earnings ratio as TII.
The average S&P500 Price/Forward Earnings ratio is at 23.69. TII is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.59 | ||
| Fwd PE | 29.69 |
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 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.31 | ||
| EV/EBITDA | 22.06 |
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 13.85% in the coming years.
PEG (NY)5.02
PEG (5Y)N/A
EPS Next 2Y9.24%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 3.15%.
Compared to an average industry Dividend Yield of 1.18, TII pays a better dividend. On top of this TII pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, TII pays a bit more dividend than the S&P500 average.
| 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
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 2Y9.24%
EPS Next 3Y13.85%
FRA:TII (12/5/2025, 7:00:00 PM)
157.88
+3.16 (+2.04%)
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 Cap143.45B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts66.82
Price Target162.75 (3.08%)
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 | 33.59 | ||
| Fwd PE | 29.69 | ||
| P/S | 9.68 | ||
| P/FCF | 80.31 | ||
| P/OCF | 24.22 | ||
| P/B | 10.05 | ||
| P/tB | 13.89 | ||
| EV/EBITDA | 22.06 |
EPS(TTM)4.7
EY2.98%
EPS(NY)5.32
Fwd EY3.37%
FCF(TTM)1.97
FCFY1.25%
OCF(TTM)6.52
OCFY4.13%
SpS16.32
BVpS15.71
TBVpS11.37
PEG (NY)5.02
PEG (5Y)N/A
Graham Number40.76
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 | 8.98 |
F-Score7
WACC10.33%
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 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 33.59 and the Price/Book (PB) ratio is 10.05.
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.