TEXAS INSTRUMENTS INC (TXN) Fundamental Analysis & Valuation

NASDAQ:TXN • US8825081040

Current stock price

269.5 USD
-7.64 (-2.76%)
At close:
269.007 USD
-0.49 (-0.18%)
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

  • In the past year TXN was profitable.
  • 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

  • TXN's Return On Assets of 14.38% is amongst the best of the industry. TXN outperforms 86.96% of its industry peers.
  • The Return On Equity of TXN (30.56%) is better than 91.30% of its industry peers.
  • TXN has a Return On Invested Capital of 17.15%. This is amongst the best in the industry. TXN outperforms 91.30% 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 10.89%.
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 has a better Profit Margin (28.12%) than 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 92.17% 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.
  • TXN's Gross Margin has declined in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • 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.
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 11.62 indicates that TXN is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 11.62, TXN is doing good in the industry, outperforming 72.17% of the companies in the same industry.
  • 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.
  • TXN's Debt to Equity ratio of 0.83 is on the low side compared to the rest of the industry. TXN is outperformed by 83.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.4
Altman-Z 11.62
ROIC/WACC1.34
WACC12.77%
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.
  • The Current ratio of TXN (4.35) is better than 64.35% of its industry peers.
  • A Quick Ratio of 2.83 indicates that TXN has no problem at all paying its short term obligations.
  • TXN's Quick ratio of 2.83 is in line compared to the rest of the industry. TXN outperforms 59.13% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. TXN Growth Analysis

3.1 Past

  • TXN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.82%, which is quite good.
  • The Earnings Per Share has been decreasing by -1.31% on average over the past years.
  • The Revenue has grown by 14.89% 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)10.82%
EPS 3Y-16.61%
EPS 5Y-1.31%
EPS Q2Q%31.25%
Revenue 1Y (TTM)14.89%
Revenue growth 3Y-4.07%
Revenue growth 5Y4.1%
Sales Q2Q%18.58%

3.2 Future

  • The Earnings Per Share is expected to grow by 18.47% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 9.99% on average over the next years. This is quite good.
EPS Next Y19.93%
EPS Next 2Y20.44%
EPS Next 3Y20.73%
EPS Next 5Y18.47%
Revenue Next Year10.54%
Revenue Next 2Y10.49%
Revenue Next 3Y10.84%
Revenue Next 5Y9.99%

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 46.15, the valuation of TXN can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 74.78% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.35. TXN is valued rather expensively when compared to this.
  • Based on the Price/Forward Earnings ratio of 34.15, the valuation of TXN can be described as expensive.
  • Based on the Price/Forward Earnings ratio, TXN is valued a bit cheaper than 71.30% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.23, TXN is valued quite expensively.
Industry RankSector Rank
PE 46.15
Fwd PE 34.15
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

  • Based on the Enterprise Value to EBITDA ratio, TXN is valued a bit cheaper than 77.39% of the companies in the same industry.
  • 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 RankSector Rank
P/FCF 94.26
EV/EBITDA 31.07
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 an expensive valuation of the company.
  • The decent profitability rating of TXN may justify a higher PE ratio.
  • TXN's earnings are expected to grow with 20.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.32
PEG (5Y)N/A
EPS Next 2Y20.44%
EPS Next 3Y20.73%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. TXN Dividend Analysis

5.1 Amount

  • TXN has a Yearly Dividend Yield of 2.11%.
  • TXN's Dividend Yield is rather good when compared to the industry average which is at 0.42. TXN pays more dividend than 94.78% of the companies in the same industry.
  • TXN's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.11%

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 their dividend for at least 10 years, which is a reliable track record.
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

  • 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 2Y20.44%
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

More info and screens

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TXN Fundamentals: All Metrics, Ratios and Statistics

TEXAS INSTRUMENTS INC

NASDAQ:TXN (4/27/2026, 8:21:32 PM)

After market: 269.007 -0.49 (-0.18%)

269.5

-7.64 (-2.76%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)04-22
Earnings (Next)07-20
Inst Owners91.93%
Inst Owner Change-0.47%
Ins Owners0.14%
Ins Owner Change2.94%
Market Cap245.37B
Revenue(TTM)18.44B
Net Income(TTM)4.97B
Analysts66.36
Price Target268.54 (-0.36%)
Short Float %1.96%
Short Ratio2.52
Dividend
Industry RankSector Rank
Dividend Yield 2.11%
Yearly Dividend5.5
Dividend Growth(5Y)8.24%
DP100.52%
Div Incr Years22
Div Non Decr Years27
Ex-Date05-05
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)0.53%
PT rev (3m)16.69%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)8.54%
EPS NY rev (1m)0.14%
EPS NY rev (3m)5.32%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.47%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)2.1%
Valuation
Industry RankSector Rank
PE 46.15
Fwd PE 34.15
P/S 13.88
P/FCF 94.26
P/OCF 34.3
P/B 15.08
P/tB 20.96
EV/EBITDA 31.07
EPS(TTM)5.84
EY2.17%
EPS(NY)7.89
Fwd EY2.93%
FCF(TTM)2.86
FCFY1.06%
OCF(TTM)7.86
OCFY2.92%
SpS19.42
BVpS17.87
TBVpS12.86
PEG (NY)2.32
PEG (5Y)N/A
Graham Number48.462 (-82.02%)
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 11.62
F-Score7
WACC12.77%
ROIC/WACC1.34
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)10.82%
EPS 3Y-16.61%
EPS 5Y-1.31%
EPS Q2Q%31.25%
EPS Next Y19.93%
EPS Next 2Y20.44%
EPS Next 3Y20.73%
EPS Next 5Y18.47%
Revenue 1Y (TTM)14.89%
Revenue growth 3Y-4.07%
Revenue growth 5Y4.1%
Sales Q2Q%18.58%
Revenue Next Year10.54%
Revenue Next 2Y10.49%
Revenue Next 3Y10.84%
Revenue Next 5Y9.99%
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 46.15 and the Price/Book (PB) ratio is 15.08.


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

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