TEXAS INSTRUMENTS INC (TII.DE) Stock Fundamental Analysis
FRA:TII - Deutsche Boerse Ag - US8825081040 - Common Stock - Currency: EUR
Overall TII gets a fundamental rating of 5 out of 10. We evaluated TII against 51 industry peers in the Semiconductors & Semiconductor Equipment industry. While TII has a great profitability rating, 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
In the past year TII was profitable.
In the past year TII had a positive cash flow from operations.
Each year in the past 5 years TII has 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 (14.36%) than 72.55% of its industry peers.
Looking at the Return On Equity, with a value of 29.54%, TII is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.47%, TII is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TII is significantly above the industry average of 15.31%.
The 3 year average ROIC (24.88%) for TII is well above the current ROIC(15.47%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.36% | ||
| ROE | 29.54% | ||
| ROIC | 15.47% |
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 30.20%. This is amongst the best in the industry. TII outperforms 92.16% of its industry peers.
In the last couple of years the Profit Margin of TII has declined.
With an excellent Operating Margin value of 34.29%, TII belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
TII's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 58.02%, TII is doing good in the industry, outperforming 78.43% of the companies in the same industry.
TII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.29% | ||
| PM (TTM) | 30.2% | ||
| GM | 58.02% |
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.
Compared to 1 year ago, TII has more shares outstanding
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 10.06. This indicates that TII is financially healthy and has little risk of bankruptcy at the moment.
TII has a Altman-Z score of 10.06. This is in the better half of the industry: TII outperforms 74.51% of its industry peers.
The Debt to FCF ratio of TII is 8.83, which is on the high side as it means it would take TII, 8.83 years of fcf income to pay off all of its debts.
TII's Debt to FCF ratio of 8.83 is on the low side compared to the rest of the industry. TII is outperformed by 64.71% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that TII is somewhat dependend on debt financing.
TII's Debt to Equity ratio of 0.78 is on the low side compared to the rest of the industry. TII is outperformed by 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.83 | ||
| Altman-Z | 10.06 |
ROIC/WACC1.54
WACC10.05%
2.3 Liquidity
A Current Ratio of 5.26 indicates that TII has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.26, TII belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
TII has a Quick Ratio of 3.37. This indicates that TII is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TII (3.37) is better than 90.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.26 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
TII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.78%.
The Revenue has decreased by -4.48% in the past 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)-17.78%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%6.67%
Revenue 1Y (TTM)-4.48%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%11.14%
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 17.38% yearly.
Based on estimates for the next years, TII will show a quite strong growth in Revenue. The Revenue will grow by 10.81% on average per year.
EPS Next Y7.67%
EPS Next 2Y13.54%
EPS Next 3Y15.72%
EPS Next 5Y17.38%
Revenue Next Year11.77%
Revenue Next 2Y11%
Revenue Next 3Y10.81%
Revenue Next 5Y10.81%
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
With a Price/Earnings ratio of 39.31, TII can be considered very expensive at the moment.
64.71% of the companies in the same industry are cheaper than TII, based on the Price/Earnings ratio.
TII is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 30.99, which means the current valuation is very expensive for TII.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TII indicates a slightly more expensive valuation: TII is more expensive than 78.43% of the companies listed in the same industry.
TII is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.31 | ||
| Fwd PE | 30.99 |
4.2 Price Multiples
70.59% of the companies in the same industry are cheaper than TII, based on the Enterprise Value to EBITDA ratio.
64.71% of the companies in the same industry are cheaper than TII, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 129.45 | ||
| EV/EBITDA | 27.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 15.72% in the coming years.
PEG (NY)5.12
PEG (5Y)N/A
EPS Next 2Y13.54%
EPS Next 3Y15.72%
5. Dividend
5.1 Amount
TII has a Yearly Dividend Yield of 2.64%.
TII's Dividend Yield is rather good when compared to the industry average which is at 1.15. TII pays more dividend than 98.04% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, TII has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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
100.06% 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.
DP100.06%
EPS Next 2Y13.54%
EPS Next 3Y15.72%
FRA:TII (7/1/2025, 7:00:00 PM)
176.9
+0.22 (+0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.39%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap160.71B
Analysts66.83
Price Target160.68 (-9.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend4.5
Dividend Growth(5Y)10.46%
DP100.06%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.8%
Min EPS beat(2)6.88%
Max EPS beat(2)18.72%
EPS beat(4)4
Avg EPS beat(4)8.73%
Min EPS beat(4)3.53%
Max EPS beat(4)18.72%
EPS beat(8)8
Avg EPS beat(8)6.58%
EPS beat(12)12
Avg EPS beat(12)6.5%
EPS beat(16)15
Avg EPS beat(16)6.94%
Revenue beat(2)2
Avg Revenue beat(2)2.69%
Min Revenue beat(2)2.38%
Max Revenue beat(2)3.01%
Revenue beat(4)2
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-1.01%
Max Revenue beat(4)3.01%
Revenue beat(8)4
Avg Revenue beat(8)0.42%
Revenue beat(12)7
Avg Revenue beat(12)1.28%
Revenue beat(16)10
Avg Revenue beat(16)1.8%
PT rev (1m)1.43%
PT rev (3m)-13.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.5%
EPS NY rev (1m)0%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.31 | ||
| Fwd PE | 30.99 | ||
| P/S | 11.74 | ||
| P/FCF | 129.45 | ||
| P/OCF | 30.63 | ||
| P/B | 11.48 | ||
| P/tB | 15.99 | ||
| EV/EBITDA | 27.04 |
EPS(TTM)4.5
EY2.54%
EPS(NY)5.71
Fwd EY3.23%
FCF(TTM)1.37
FCFY0.77%
OCF(TTM)5.78
OCFY3.27%
SpS15.07
BVpS15.41
TBVpS11.06
PEG (NY)5.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.36% | ||
| ROE | 29.54% | ||
| ROCE | 17.6% | ||
| ROIC | 15.47% | ||
| ROICexc | 18.41% | ||
| ROICexgc | 22.35% | ||
| OM | 34.29% | ||
| PM (TTM) | 30.2% | ||
| GM | 58.02% | ||
| FCFM | 9.07% |
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%
ROICexcg growth 3Y-37.97%
ROICexcg 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-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.83 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 282.49% | ||
| Cap/Sales | 29.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.83% | ||
| Profit Quality | 30.02% | ||
| Current Ratio | 5.26 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | 10.06 |
F-Score5
WACC10.05%
ROIC/WACC1.54
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)-17.78%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%6.67%
EPS Next Y7.67%
EPS Next 2Y13.54%
EPS Next 3Y15.72%
EPS Next 5Y17.38%
Revenue 1Y (TTM)-4.48%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%11.14%
Revenue Next Year11.77%
Revenue Next 2Y11%
Revenue Next 3Y10.81%
Revenue Next 5Y10.81%
EBIT growth 1Y-16.1%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year46.85%
EBIT Next 3Y26.02%
EBIT Next 5Y22.18%
FCF growth 1Y-66.93%
FCF growth 3Y-38.03%
FCF growth 5Y-23.72%
OCF growth 1Y-20.5%
OCF growth 3Y-10.31%
OCF growth 5Y-1.02%