TEXAS INSTRUMENTS INC (TXN) Fundamental Analysis & Valuation

NASDAQ:TXN • US8825081040

Current stock price

199.735 USD
+0.32 (+0.16%)
At close:
206.818 USD
+7.08 (+3.55%)
After Hours:

This TXN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. TXN Profitability Analysis

1.1 Basic Checks

  • In the past year TXN was profitable.
  • TXN had a positive operating cash flow in the past year.
  • In the past 5 years TXN has always been profitable.
  • In the past 5 years TXN always reported a positive cash flow from operatings.
TXN Yearly Net Income VS EBIT VS OCF VS FCFTXN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • TXN has a better Return On Assets (14.38%) than 86.96% of its industry peers.
  • The Return On Equity of TXN (30.56%) is better than 91.30% of its industry peers.
  • TXN has a better Return On Invested Capital (17.15%) than 91.30% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TXN is significantly above the industry average of 10.70%.
Industry RankSector Rank
ROA 14.38%
ROE 30.56%
ROIC 17.15%
ROA(3y)15.95%
ROA(5y)22.24%
ROE(3y)32.38%
ROE(5y)42.98%
ROIC(3y)18.01%
ROIC(5y)25.5%
TXN Yearly ROA, ROE, ROICTXN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 28.12%, TXN belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
  • TXN's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 34.72%, TXN belongs to the top of the industry, outperforming 93.04% of the companies in the same industry.
  • In the last couple of years the Operating Margin of TXN has declined.
  • The Gross Margin of TXN (57.02%) is better than 79.13% of its industry peers.
  • In the last couple of years the Gross Margin of TXN has declined.
Industry RankSector Rank
OM 34.72%
PM (TTM) 28.12%
GM 57.02%
OM growth 3Y-12.54%
OM growth 5Y-3.23%
PM growth 3Y-13.52%
PM growth 5Y-6.09%
GM growth 3Y-6.05%
GM growth 5Y-2.31%
TXN Yearly Profit, Operating, Gross MarginsTXN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. TXN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TXN is creating some value.
  • Compared to 1 year ago, TXN has less shares outstanding
  • TXN has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for TXN is higher compared to a year ago.
TXN Yearly Shares OutstandingTXN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
TXN Yearly Total Debt VS Total AssetsTXN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • TXN has an Altman-Z score of 9.54. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
  • TXN's Altman-Z score of 9.54 is fine compared to the rest of the industry. TXN outperforms 71.30% of its industry peers.
  • TXN has a debt to FCF ratio of 5.40. This is a neutral value as TXN would need 5.40 years to pay back of all of its debts.
  • TXN has a Debt to FCF ratio of 5.40. This is comparable to the rest of the industry: TXN outperforms 53.04% of its industry peers.
  • TXN has a Debt/Equity ratio of 0.83. This is a neutral value indicating TXN is somewhat dependend on debt financing.
  • TXN has a Debt to Equity ratio of 0.83. This is amonst the worse of the industry: TXN underperforms 82.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.4
Altman-Z 9.54
ROIC/WACC1.48
WACC11.56%
TXN Yearly LT Debt VS Equity VS FCFTXN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.3 Liquidity

  • TXN has a Current Ratio of 4.35. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 4.35, TXN is in the better half of the industry, outperforming 64.35% of the companies in the same industry.
  • TXN has a Quick Ratio of 2.83. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
  • TXN has a Quick ratio (2.83) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 4.35
Quick Ratio 2.83
TXN Yearly Current Assets VS Current LiabilitesTXN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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5

3. TXN Growth Analysis

3.1 Past

  • TXN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.82%.
  • Measured over the past years, TXN shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.31% on average per year.
  • The Revenue has grown by 13.05% in the past year. This is quite good.
  • The Revenue has been growing slightly by 4.10% on average over the past years.
EPS 1Y (TTM)4.82%
EPS 3Y-16.61%
EPS 5Y-1.31%
EPS Q2Q%-2.31%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-4.07%
Revenue growth 5Y4.1%
Sales Q2Q%10.38%

3.2 Future

  • Based on estimates for the next years, TXN will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.47% on average per year.
  • Based on estimates for the next years, TXN will show a quite strong growth in Revenue. The Revenue will grow by 10.04% on average per year.
EPS Next Y19.76%
EPS Next 2Y20.34%
EPS Next 3Y20.73%
EPS Next 5Y18.47%
Revenue Next Year10.46%
Revenue Next 2Y10.44%
Revenue Next 3Y10.83%
Revenue Next 5Y10.04%

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.
TXN Yearly Revenue VS EstimatesTXN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B 25B
TXN Yearly EPS VS EstimatesTXN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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3

4. TXN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 36.72, the valuation of TXN can be described as expensive.
  • TXN's Price/Earnings ratio is a bit cheaper when compared to the industry. TXN is cheaper than 77.39% of the companies in the same industry.
  • TXN is valuated rather expensively when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 30.66, which means the current valuation is very expensive for TXN.
  • Based on the Price/Forward Earnings ratio, TXN is valued a bit cheaper than 66.09% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.10. TXN is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 36.72
Fwd PE 30.66
TXN Price Earnings VS Forward Price EarningsTXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than the industry average as 77.39% of the companies are valued more expensively.
  • TXN's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 69.86
EV/EBITDA 23.27
TXN Per share dataTXN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TXN does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of TXN may justify a higher PE ratio.
  • A more expensive valuation may be justified as TXN's earnings are expected to grow with 20.73% in the coming years.
PEG (NY)1.86
PEG (5Y)N/A
EPS Next 2Y20.34%
EPS Next 3Y20.73%

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7

5. TXN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.98%, TXN has a reasonable but not impressive dividend return.
  • TXN's Dividend Yield is rather good when compared to the industry average which is at 0.52. TXN pays more dividend than 95.65% of the companies in the same industry.
  • TXN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.98%

5.2 History

  • The dividend of TXN is nicely growing with an annual growth rate of 8.24%!
  • TXN has been paying a dividend for at least 10 years, so it has a reliable track record.
  • TXN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.24%
Div Incr Years22
Div Non Decr Years27
TXN Yearly Dividends per shareTXN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • TXN pays out 100.52% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of TXN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.52%
EPS Next 2Y20.34%
EPS Next 3Y20.73%
TXN Yearly Income VS Free CF VS DividendTXN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
TXN Dividend Payout.TXN Dividend Payout, showing the Payout Ratio.TXN Dividend Payout.PayoutRetained Earnings

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TXN Fundamentals: All Metrics, Ratios and Statistics

TEXAS INSTRUMENTS INC

NASDAQ:TXN (4/7/2026, 9:08:36 PM)

After market: 206.818 +7.08 (+3.55%)

199.735

+0.32 (+0.16%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-27
Earnings (Next)04-22
Inst Owners92.39%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change2.96%
Market Cap181.85B
Revenue(TTM)17.68B
Net Income(TTM)4.97B
Analysts66.36
Price Target220.22 (10.26%)
Short Float %2.21%
Short Ratio2.53
Dividend
Industry RankSector Rank
Dividend Yield 2.98%
Yearly Dividend5.5
Dividend Growth(5Y)8.24%
DP100.52%
Div Incr Years22
Div Non Decr Years27
Ex-Date01-30
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.19%
Min EPS beat(2)-2.77%
Max EPS beat(2)-1.62%
EPS beat(4)2
Avg EPS beat(4)4.37%
Min EPS beat(4)-2.77%
Max EPS beat(4)18.72%
EPS beat(8)6
Avg EPS beat(8)5.61%
EPS beat(12)10
Avg EPS beat(12)4.54%
EPS beat(16)14
Avg EPS beat(16)5.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)1.15%
Revenue beat(4)3
Avg Revenue beat(4)0.96%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)3.01%
Revenue beat(8)5
Avg Revenue beat(8)0.67%
Revenue beat(12)6
Avg Revenue beat(12)0.27%
Revenue beat(16)10
Avg Revenue beat(16)1.16%
PT rev (1m)0.04%
PT rev (3m)16.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.56%
EPS NY rev (1m)0%
EPS NY rev (3m)5.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.31%
Valuation
Industry RankSector Rank
PE 36.72
Fwd PE 30.66
P/S 10.28
P/FCF 69.86
P/OCF 25.42
P/B 11.17
P/tB 15.54
EV/EBITDA 23.27
EPS(TTM)5.44
EY2.72%
EPS(NY)6.51
Fwd EY3.26%
FCF(TTM)2.86
FCFY1.43%
OCF(TTM)7.86
OCFY3.93%
SpS19.42
BVpS17.87
TBVpS12.86
PEG (NY)1.86
PEG (5Y)N/A
Graham Number46.77
Profitability
Industry RankSector Rank
ROA 14.38%
ROE 30.56%
ROCE 19.54%
ROIC 17.15%
ROICexc 20.31%
ROICexgc 24.53%
OM 34.72%
PM (TTM) 28.12%
GM 57.02%
FCFM 14.72%
ROA(3y)15.95%
ROA(5y)22.24%
ROE(3y)32.38%
ROE(5y)42.98%
ROIC(3y)18.01%
ROIC(5y)25.5%
ROICexc(3y)23.69%
ROICexc(5y)39.06%
ROICexgc(3y)29.64%
ROICexgc(5y)54.92%
ROCE(3y)20.52%
ROCE(5y)29.05%
ROICexgc growth 3Y-34.12%
ROICexgc growth 5Y-22.94%
ROICexc growth 3Y-30.4%
ROICexc growth 5Y-16.49%
OM growth 3Y-12.54%
OM growth 5Y-3.23%
PM growth 3Y-13.52%
PM growth 5Y-6.09%
GM growth 3Y-6.05%
GM growth 5Y-2.31%
F-Score7
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.4
Debt/EBITDA 1.66
Cap/Depr 227.61%
Cap/Sales 25.73%
Interest Coverage 250
Cash Conversion 87.89%
Profit Quality 52.34%
Current Ratio 4.35
Quick Ratio 2.83
Altman-Z 9.54
F-Score7
WACC11.56%
ROIC/WACC1.48
Cap/Depr(3y)314.1%
Cap/Depr(5y)297.21%
Cap/Sales(3y)28.5%
Cap/Sales(5y)22.58%
Profit Quality(3y)34.85%
Profit Quality(5y)50.78%
High Growth Momentum
Growth
EPS 1Y (TTM)4.82%
EPS 3Y-16.61%
EPS 5Y-1.31%
EPS Q2Q%-2.31%
EPS Next Y19.76%
EPS Next 2Y20.34%
EPS Next 3Y20.73%
EPS Next 5Y18.47%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-4.07%
Revenue growth 5Y4.1%
Sales Q2Q%10.38%
Revenue Next Year10.46%
Revenue Next 2Y10.44%
Revenue Next 3Y10.83%
Revenue Next 5Y10.04%
EBIT growth 1Y14.96%
EBIT growth 3Y-16.1%
EBIT growth 5Y0.74%
EBIT Next Year57.57%
EBIT Next 3Y27.55%
EBIT Next 5Y22.3%
FCF growth 1Y73.77%
FCF growth 3Y-23.97%
FCF growth 5Y-13.86%
OCF growth 1Y13.22%
OCF growth 3Y-6.39%
OCF growth 5Y3.1%

TEXAS INSTRUMENTS INC / TXN Fundamental Analysis FAQ

What is the ChartMill fundamental rating of TEXAS INSTRUMENTS INC (TXN) stock?

ChartMill assigns a fundamental rating of 6 / 10 to TXN.


What is the valuation status of TEXAS INSTRUMENTS INC (TXN) stock?

ChartMill assigns a valuation rating of 3 / 10 to TEXAS INSTRUMENTS INC (TXN). This can be considered as Overvalued.


Can you provide the profitability details for TEXAS INSTRUMENTS INC?

TEXAS INSTRUMENTS INC (TXN) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for TXN stock?

The Price/Earnings (PE) ratio for TEXAS INSTRUMENTS INC (TXN) is 36.72 and the Price/Book (PB) ratio is 11.17.


What is the financial health of TEXAS INSTRUMENTS INC (TXN) stock?

The financial health rating of TEXAS INSTRUMENTS INC (TXN) is 6 / 10.