196.59 USD
+3.28 (+1.7%)
196.78 USD
+0.19 (+0.1%)
Overall TXN gets a fundamental rating of 6 out of 10. We evaluated TXN against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While TXN has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, TXN is valued expensive at the moment. Finally TXN also has an excellent dividend rating. This makes TXN very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- TXN had positive earnings in the past year.
- In the past year TXN had a positive cash flow from operations.
- TXN had positive earnings in each of the past 5 years.
- Each year in the past 5 years TXN had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 14.33%, TXN belongs to the top of the industry, outperforming 88.50% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 30.17%, TXN belongs to the top of the industry, outperforming 92.04% of the companies in the same industry.
- TXN's Return On Invested Capital of 16.57% is amongst the best of the industry. TXN outperforms 91.15% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TXN is significantly above the industry average of 10.75%.
- The last Return On Invested Capital (16.57%) for TXN is well below the 3 year average (24.88%), which needs to be investigated, but indicates that TXN 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
- TXN's Profit Margin of 29.05% is amongst the best of the industry. TXN outperforms 88.50% of its industry peers.
- In the last couple of years the Profit Margin of TXN has declined.
- The Operating Margin of TXN (34.82%) is better than 92.92% of its industry peers.
- In the last couple of years the Operating Margin of TXN has declined.
- TXN has a better Gross Margin (57.48%) than 81.42% of its industry peers.
- TXN'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
- TXN 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, TXN has more shares outstanding
- TXN has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TXN has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 9.26 indicates that TXN is not in any danger for bankruptcy at the moment.
- TXN's Altman-Z score of 9.26 is fine compared to the rest of the industry. TXN outperforms 68.14% of its industry peers.
- The Debt to FCF ratio of TXN is 6.75, which is on the high side as it means it would take TXN, 6.75 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 6.75, TXN perfoms like the industry average, outperforming 53.98% of the companies in the same industry.
- A Debt/Equity ratio of 0.81 indicates that TXN is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.81, TXN is not doing good in the industry: 81.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 9.26 |
ROIC/WACC1.53
WACC10.81%
2.3 Liquidity
- A Current Ratio of 4.45 indicates that TXN has no problem at all paying its short term obligations.
- TXN has a better Current ratio (4.45) than 66.37% of its industry peers.
- A Quick Ratio of 2.90 indicates that TXN has no problem at all paying its short term obligations.
- TXN has a Quick ratio of 2.90. This is in the better half of the industry: TXN outperforms 61.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 2.9 |
3. Growth
3.1 Past
- TXN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.67%.
- TXN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.90%.
- TXN 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
- TXN 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 10.26% on average over the next years. This is quite good.
EPS Next Y6.65%
EPS Next 2Y9.25%
EPS Next 3Y13.5%
EPS Next 5Y17.13%
Revenue Next Year14.11%
Revenue Next 2Y11.14%
Revenue Next 3Y10.98%
Revenue Next 5Y10.26%
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
- Based on the Price/Earnings ratio of 35.94, the valuation of TXN can be described as expensive.
- 76.99% of the companies in the same industry are more expensive than TXN, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of TXN to the average of the S&P500 Index (27.25), we can say TXN is valued slightly more expensively.
- A Price/Forward Earnings ratio of 31.74 indicates a quite expensive valuation of TXN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 67.26% of the companies listed in the same industry.
- TXN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.94 | ||
| Fwd PE | 31.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than the industry average as 72.57% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.88 | ||
| EV/EBITDA | 23.15 |
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 excellent 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 13.50% in the coming years.
PEG (NY)5.4
PEG (5Y)N/A
EPS Next 2Y9.25%
EPS Next 3Y13.5%
5. Dividend
5.1 Amount
- TXN has a Yearly Dividend Yield of 2.91%.
- Compared to an average industry Dividend Yield of 0.49, TXN pays a better dividend. On top of this TXN pays more dividend than 95.58% of the companies listed in the same industry.
- TXN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
- On average, the dividend of TXN grows each year by 10.46%, which is quite nice.
- TXN has paid a dividend for at least 10 years, which is a reliable track record.
- TXN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.46%
Div Incr Years21
Div Non Decr Years26
5.3 Sustainability
- TXN pays out 98.66% of its income as dividend. This is not a sustainable payout ratio.
- TXN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP98.66%
EPS Next 2Y9.25%
EPS Next 3Y13.5%
TEXAS INSTRUMENTS INC / TXN 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.
How profitable is TEXAS INSTRUMENTS INC (TXN) stock?
TEXAS INSTRUMENTS INC (TXN) has a profitability rating of 8 / 10.
What is the expected EPS growth for TEXAS INSTRUMENTS INC (TXN) stock?
The Earnings per Share (EPS) of TEXAS INSTRUMENTS INC (TXN) is expected to grow by 6.65% in the next year.
Can you provide the dividend sustainability for TXN stock?
The dividend rating of TEXAS INSTRUMENTS INC (TXN) is 7 / 10 and the dividend payout ratio is 98.66%.