215.55 USD
-3.42 (-1.56%)
At close: Jan 30, 2026
215.25 USD
-0.3 (-0.14%)
After Hours: 1/30/2026, 8:22:22 PM
Taking everything into account, TXN scores 6 out of 10 in our fundamental rating. TXN was compared to 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. TXN has a decent growth rate and is not valued too expensively. Finally TXN also has an excellent dividend rating. These ratings would make TXN suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year TXN was profitable.
- TXN had a positive operating cash flow in the past year.
- 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's Return On Assets of 14.38% is amongst the best of the industry. TXN outperforms 88.50% of its industry peers.
- With an excellent Return On Equity value of 30.56%, TXN belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
- TXN's Return On Invested Capital of 17.15% is amongst the best of the industry. TXN outperforms 92.04% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TXN is significantly above the industry average of 10.85%.
| Industry Rank | Sector 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%
1.3 Margins
- TXN's Profit Margin of 28.12% is amongst the best of the industry. TXN outperforms 85.84% of its industry peers.
- In the last couple of years the Profit Margin of TXN has declined.
- Looking at the Operating Margin, with a value of 34.72%, TXN belongs to the top of the industry, outperforming 92.92% 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 80.53% of its industry peers.
- TXN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TXN is still creating some value.
- The number of shares outstanding for TXN has been reduced 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 10.00. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of TXN (10.00) is better than 68.14% of its industry peers.
- The Debt to FCF ratio of TXN is 5.40, which is a neutral value as it means it would take TXN, 5.40 years of fcf income to pay off all of its debts.
- TXN's Debt to FCF ratio of 5.40 is in line compared to the rest of the industry. TXN outperforms 55.75% of its industry peers.
- A Debt/Equity ratio of 0.83 indicates that TXN is somewhat dependend on debt financing.
- TXN has a worse Debt to Equity ratio (0.83) than 81.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 10 |
ROIC/WACC1.57
WACC10.91%
2.3 Liquidity
- A Current Ratio of 4.35 indicates that TXN has no problem at all paying its short term obligations.
- TXN has a Current ratio of 4.35. This is in the better half of the industry: TXN outperforms 65.49% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 2.83, TXN is in the better half of the industry, outperforming 61.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.35 | ||
| Quick Ratio | 2.83 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.82% over the past year.
- 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.
- Looking at the last year, TXN shows a quite strong growth in Revenue. The Revenue has grown by 13.05% in the last year.
- TXN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.10% yearly.
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
- The Earnings Per Share is expected to grow by 19.54% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.83% on average over the next years.
EPS Next Y13.87%
EPS Next 2Y18.11%
EPS Next 3Y18.15%
EPS Next 5Y19.54%
Revenue Next Year8.26%
Revenue Next 2Y9.46%
Revenue Next 3Y9.35%
Revenue Next 5Y7.83%
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
- A Price/Earnings ratio of 39.62 indicates a quite expensive valuation of TXN.
- 73.45% 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 (28.32), we can say TXN is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 34.80, the valuation of TXN can be described as expensive.
- TXN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TXN is cheaper than 61.95% of the companies 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 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.62 | ||
| Fwd PE | 34.8 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than 71.68% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 60.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.24 | ||
| EV/EBITDA | 24.99 |
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.
- TXN's earnings are expected to grow with 18.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.86
PEG (5Y)N/A
EPS Next 2Y18.11%
EPS Next 3Y18.15%
5. Dividend
5.1 Amount
- TXN has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.50, 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 a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
- On average, the dividend of TXN grows each year by 8.24%, which is quite nice.
- 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)8.24%
Div Incr Years21
Div Non Decr Years26
5.3 Sustainability
- 100.52% of the earnings are spent on dividend by TXN. This is not a sustainable payout ratio.
- TXN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP100.52%
EPS Next 2Y18.11%
EPS Next 3Y18.15%
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 4 / 10 to TEXAS INSTRUMENTS INC (TXN). This can be considered as Fairly Valued.
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 13.87% 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 100.52%.