TEXAS INSTRUMENTS INC (TXN) Fundamental Analysis & Valuation

NASDAQ:TXN • US8825081040

Current stock price

194.87 USD
-1.43 (-0.73%)
At close:
194.86 USD
-0.01 (-0.01%)
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

  • TXN had positive earnings in the past year.
  • TXN had a positive operating cash flow in the past year.
  • TXN had positive earnings in each of the past 5 years.
  • 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

  • With an excellent Return On Assets value of 14.38%, TXN belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
  • With an excellent Return On Equity value of 30.56%, TXN belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
  • The Return On Invested Capital of TXN (17.15%) is better than 91.30% of its industry peers.
  • TXN had an Average Return On Invested Capital over the past 3 years of 18.01%. This 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

  • TXN's Profit Margin of 28.12% is amongst the best of the industry. TXN outperforms 86.96% of its industry peers.
  • In the last couple of years the Profit Margin of TXN has declined.
  • TXN has a Operating Margin of 34.72%. This is amongst the best in the industry. TXN outperforms 93.04% of its industry peers.
  • In the last couple of years the Operating Margin of TXN has declined.
  • With a decent Gross Margin value of 57.02%, TXN is doing good in the industry, outperforming 79.13% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TXN is still creating some value.
  • TXN has less shares outstanding than it did 1 year ago.
  • 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

  • An Altman-Z score of 9.39 indicates that TXN is not in any danger for bankruptcy at the moment.
  • TXN has a Altman-Z score of 9.39. This is in the better half of the industry: TXN outperforms 69.57% 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.
  • The Debt to FCF ratio of TXN (5.40) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.83 indicates that TXN is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.83, TXN is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.4
Altman-Z 9.39
ROIC/WACC1.5
WACC11.42%
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.
  • TXN has a Current ratio of 4.35. This is in the better half of the industry: TXN outperforms 64.35% 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.
  • TXN has a Quick ratio of 2.83. This is comparable to the rest of the industry: TXN outperforms 60.00% of 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%.
  • TXN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.31% yearly.
  • 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

  • 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 35.82, 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 79.13% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.17. TXN is valued slightly more expensive when compared to this.
  • With a Price/Forward Earnings ratio of 29.91, TXN can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, TXN is valued a bit cheaper than 68.70% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of TXN to the average of the S&P500 Index (23.05), we can say TXN is valued slightly more expensively.
Industry RankSector Rank
PE 35.82
Fwd PE 29.91
TXN Price Earnings VS Forward Price EarningsTXN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 77.39% of the companies listed in the same industry.
  • TXN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 68.16
EV/EBITDA 22.72
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.
  • TXN has a very decent profitability rating, which 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)1.81
PEG (5Y)N/A
EPS Next 2Y20.34%
EPS Next 3Y20.73%

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7

5. TXN Dividend Analysis

5.1 Amount

  • TXN has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
  • 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.
  • Compared to an average S&P500 Dividend Yield of 1.89, TXN pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.98%

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 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.
  • TXN's earnings are growing more than its dividend. This makes the dividend growth 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 (4/2/2026, 8:00:01 PM)

After market: 194.86 -0.01 (-0.01%)

194.87

-1.43 (-0.73%)

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 Cap177.42B
Revenue(TTM)17.68B
Net Income(TTM)4.97B
Analysts66.36
Price Target220.22 (13.01%)
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 35.82
Fwd PE 29.91
P/S 10.03
P/FCF 68.16
P/OCF 24.8
P/B 10.9
P/tB 15.16
EV/EBITDA 22.72
EPS(TTM)5.44
EY2.79%
EPS(NY)6.51
Fwd EY3.34%
FCF(TTM)2.86
FCFY1.47%
OCF(TTM)7.86
OCFY4.03%
SpS19.42
BVpS17.87
TBVpS12.86
PEG (NY)1.81
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 9.39
F-Score7
WACC11.42%
ROIC/WACC1.5
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 35.82 and the Price/Book (PB) ratio is 10.9.


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

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