222.92 USD
-2.29 (-1.02%)
At close: Feb 4, 2026
223.1 USD
+0.18 (+0.08%)
After Hours: 2/4/2026, 6:28:45 PM
TXN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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. TXN is quite expensive at the moment. It does show a decent growth rate. TXN also has an excellent dividend rating. This makes TXN very considerable for dividend investing!
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.
- In the past 5 years TXN has always been profitable.
- Each year in the past 5 years TXN had a positive operating cash flow.
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.
- Looking at the Return On Equity, with a value of 30.56%, 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 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 10.69%.
| 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
- With an excellent Profit Margin value of 28.12%, TXN belongs to the best of the industry, outperforming 85.84% of the companies in the same industry.
- 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 93.81% 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.
- In the last couple of years the Gross Margin of TXN has declined.
| 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
- TXN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for TXN has been reduced compared to 1 year ago.
- Compared to 5 years ago, TXN has less shares outstanding
- The debt/assets ratio for TXN is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 10.28 indicates that TXN is not in any danger for bankruptcy at the moment.
- TXN has a better Altman-Z score (10.28) than 72.57% 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.
- Looking at the Debt to FCF ratio, with a value of 5.40, TXN is in line with its industry, outperforming 55.75% of the companies in the same industry.
- A Debt/Equity ratio of 0.83 indicates that TXN is somewhat dependend on debt financing.
- The Debt to Equity ratio of TXN (0.83) is worse than 81.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 10.28 |
ROIC/WACC1.57
WACC10.93%
2.3 Liquidity
- A Current Ratio of 4.35 indicates that TXN has no problem at all paying 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 65.49% 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 of 2.83. This is in the better half of the industry: TXN outperforms 61.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.35 | ||
| Quick Ratio | 2.83 |
3. Growth
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
- TXN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.54% yearly.
- The Revenue is expected to grow by 7.83% on average over the next years.
EPS Next Y18.99%
EPS Next 2Y19.96%
EPS Next 3Y20.01%
EPS Next 5Y19.54%
Revenue Next Year10.25%
Revenue Next 2Y10.15%
Revenue Next 3Y10.35%
Revenue Next 5Y7.83%
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.
4. Valuation
4.1 Price/Earnings Ratio
- TXN is valuated quite expensively with a Price/Earnings ratio of 40.98.
- Based on the Price/Earnings ratio, TXN is valued a bit cheaper than the industry average as 69.91% of the companies are valued more expensively.
- TXN is valuated rather expensively when we compare the Price/Earnings ratio to 28.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 34.44, which means the current valuation is very expensive for TXN.
- The rest of the industry has a similar Price/Forward Earnings ratio as TXN.
- TXN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.98 | ||
| Fwd PE | 34.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than the industry average as 71.68% of the companies are valued more expensively.
- TXN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.81 | ||
| EV/EBITDA | 26.06 |
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 excellent profitability rating of TXN may justify a higher PE ratio.
- TXN's earnings are expected to grow with 20.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y19.96%
EPS Next 3Y20.01%
5. Dividend
5.1 Amount
- TXN has a Yearly Dividend Yield of 2.52%.
- 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
- On average, the dividend of TXN grows each year by 8.24%, which is quite nice.
- TXN has paid a dividend for at least 10 years, which is 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 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.
- The dividend of TXN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.52%
EPS Next 2Y19.96%
EPS Next 3Y20.01%
222.92
-2.29 (-1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-27 2026-01-27/amc
Earnings (Next)04-21 2026-04-21/amc
Inst Owners90.72%
Inst Owner Change-2.08%
Ins Owners0.1%
Ins Owner Change-0.18%
Market Cap202.55B
Revenue(TTM)17.68B
Net Income(TTM)4.97B
Analysts65.91
Price Target213.95 (-4.02%)
Short Float %2.12%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend5.5
Dividend Growth(5Y)8.24%
DP100.52%
Div Incr Years21
Div Non Decr Years26
Ex-Date01-30 2026-01-30 (1.42)
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)0.32%
PT rev (3m)-0.24%
EPS NQ rev (1m)3.71%
EPS NQ rev (3m)2.99%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-7.52%
Revenue NQ rev (1m)1.55%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.98 | ||
| Fwd PE | 34.44 | ||
| P/S | 11.46 | ||
| P/FCF | 77.81 | ||
| P/OCF | 28.32 | ||
| P/B | 12.45 | ||
| P/tB | 17.3 | ||
| EV/EBITDA | 26.06 |
EPS(TTM)5.44
EY2.44%
EPS(NY)6.47
Fwd EY2.9%
FCF(TTM)2.86
FCFY1.29%
OCF(TTM)7.87
OCFY3.53%
SpS19.46
BVpS17.91
TBVpS12.88
PEG (NY)2.16
PEG (5Y)N/A
Graham Number46.82
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 10.28 |
F-Score7
WACC10.93%
ROIC/WACC1.57
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 Y18.99%
EPS Next 2Y19.96%
EPS Next 3Y20.01%
EPS Next 5Y19.54%
Revenue 1Y (TTM)13.05%
Revenue growth 3Y-4.07%
Revenue growth 5Y4.1%
Sales Q2Q%10.38%
Revenue Next Year10.25%
Revenue Next 2Y10.15%
Revenue Next 3Y10.35%
Revenue Next 5Y7.83%
EBIT growth 1Y14.96%
EBIT growth 3Y-16.1%
EBIT growth 5Y0.74%
EBIT Next Year53.96%
EBIT Next 3Y23.77%
EBIT Next 5Y22.45%
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 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 18.99% 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%.