TEXAS INSTRUMENTS INC (TXN)
US8825081040 - Common Stock
Taking everything into account, TXN scores 6 out of 10 in our fundamental rating. TXN was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. TXN scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, TXN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TXN was profitable.
In the past year TXN had a positive cash flow from operations.
Each year in the past 5 years TXN has been profitable.
In the past 5 years TXN always reported a positive cash flow from operatings.
1.2 Ratios
TXN has a Return On Assets of 13.99%. This is amongst the best in the industry. TXN outperforms 83.33% of its industry peers.
TXN has a Return On Equity of 28.61%. This is amongst the best in the industry. TXN outperforms 90.74% of its industry peers.
TXN has a better Return On Invested Capital (15.20%) than 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TXN is significantly above the industry average of 11.05%.
The last Return On Invested Capital (15.20%) for TXN is well below the 3 year average (31.77%), which needs to be investigated, but indicates that TXN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.99% | ||
| ROE | 28.61% | ||
| ROIC | 15.2% |
ROA(3y)27.8%
ROA(5y)27.97%
ROE(3y)52.04%
ROE(5y)54.54%
ROIC(3y)31.77%
ROIC(5y)31.43%
1.3 Margins
TXN has a better Profit Margin (31.44%) than 91.67% of its industry peers.
In the last couple of years the Profit Margin of TXN has remained more or less at the same level.
The Operating Margin of TXN (34.99%) is better than 95.37% of its industry peers.
TXN's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 58.63%, TXN belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
In the last couple of years the Gross Margin of TXN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.99% | ||
| PM (TTM) | 31.44% | ||
| GM | 58.63% |
OM growth 3Y0.75%
OM growth 5Y-0.33%
PM growth 3Y-1.34%
PM growth 5Y1.05%
GM growth 3Y-0.63%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TXN is creating value.
The number of shares outstanding for TXN has been increased compared to 1 year ago.
The number of shares outstanding for TXN has been reduced compared to 5 years ago.
TXN has a worse debt/assets ratio than last year.
2.2 Solvency
TXN has an Altman-Z score of 9.45. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.45, TXN is in the better half of the industry, outperforming 78.70% of the companies in the same industry.
TXN has a debt to FCF ratio of 9.46. This is a negative value and a sign of low solvency as TXN would need 9.46 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.46, TXN perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
TXN has a Debt/Equity ratio of 0.74. This is a neutral value indicating TXN is somewhat dependend on debt financing.
TXN has a worse Debt to Equity ratio (0.74) than 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 9.46 | ||
| Altman-Z | 9.45 |
ROIC/WACC1.04
WACC14.61%
2.3 Liquidity
A Current Ratio of 4.31 indicates that TXN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.31, TXN is in the better half of the industry, outperforming 67.59% of the companies in the same industry.
TXN has a Quick Ratio of 3.14. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TXN (3.14) is better than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.14 |
3. Growth
3.1 Past
The earnings per share for TXN have decreased strongly by -30.13% in the last year.
TXN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.74% yearly.
The Revenue for TXN has decreased by -13.26% in the past year. This is quite bad
The Revenue has been growing slightly by 2.11% on average over the past years.
EPS 1Y (TTM)-30.13%
EPS 3Y6.71%
EPS 5Y4.74%
EPS Q2Q%-20.54%
Revenue 1Y (TTM)-13.26%
Revenue growth 3Y6.6%
Revenue growth 5Y2.11%
Sales Q2Q%-8.41%
3.2 Future
The Earnings Per Share is expected to grow by 8.55% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.69% on average over the next years.
EPS Next Y-27.11%
EPS Next 2Y-8.28%
EPS Next 3Y2.5%
EPS Next 5Y8.55%
Revenue Next Year-11.71%
Revenue Next 2Y-1.02%
Revenue Next 3Y3.83%
Revenue Next 5Y6.69%
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 36.84, TXN can be considered very expensive at the moment.
TXN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.96. TXN is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 33.37, TXN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TXN is on the same level as its industry peers.
TXN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.84 | ||
| Fwd PE | 33.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
TXN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 123.16 | ||
| EV/EBITDA | 25.76 |
4.3 Compensation for Growth
TXN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.77
EPS Next 2Y-8.28%
EPS Next 3Y2.5%
5. Dividend
5.1 Amount
TXN has a Yearly Dividend Yield of 2.64%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.37, TXN pays a better dividend. On top of this TXN pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, TXN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
The dividend of TXN is nicely growing with an annual growth rate of 13.63%!
TXN has been paying a dividend for at least 10 years, so it has a reliable track record.
TXN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.63%
Div Incr Years20
Div Non Decr Years25
5.3 Sustainability
95.87% of the earnings are spent on dividend by TXN. This is not a sustainable payout ratio.
The dividend of TXN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.87%
EPS Next 2Y-8.28%
EPS Next 3Y2.5%
TEXAS INSTRUMENTS INC
NASDAQ:TXN (11/21/2024, 8:00:01 PM)
After market: 198 -0.2 (-0.1%)198.2
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap180.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.84 | ||
| Fwd PE | 33.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)7.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.99% | ||
| ROE | 28.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.99% | ||
| PM (TTM) | 31.44% | ||
| GM | 58.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-30.13%
EPS 3Y6.71%
EPS 5Y
EPS Q2Q%
EPS Next Y-27.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.26%
Revenue growth 3Y6.6%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y