TEXAS INSTRUMENTS INC (TXN) Fundamental Analysis & Valuation

NASDAQ:TXN • US8825081040

Current stock price

188.63 USD
+1.44 (+0.77%)
At close:
188.63 USD
0 (0%)
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.
  • 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.
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.
  • TXN's Return On Equity of 30.56% is amongst the best of the industry. TXN outperforms 91.30% of its industry peers.
  • With an excellent Return On Invested Capital value of 17.15%, TXN belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
  • 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

  • Looking at the Profit Margin, with a value of 28.12%, TXN belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
  • TXN's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 34.72%, TXN belongs to the best of the industry, outperforming 93.04% of the companies in the same industry.
  • In the last couple of years the Operating Margin of TXN has declined.
  • TXN's Gross Margin of 57.02% is fine compared to the rest of the industry. TXN outperforms 80.00% of its industry peers.
  • 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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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.
  • 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

  • TXN has an Altman-Z score of 9.16. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 9.16, TXN is in the better half of the industry, outperforming 70.43% of the companies in the same industry.
  • 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 has a Debt to FCF ratio of 5.40. This is comparable to the rest of the industry: TXN outperforms 53.91% of its industry peers.
  • 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 82.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.4
Altman-Z 9.16
ROIC/WACC1.49
WACC11.5%
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.
  • Looking at the Current ratio, with a value of 4.35, TXN is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
  • A Quick Ratio of 2.83 indicates that TXN has no problem at all paying its short term obligations.
  • TXN has a Quick ratio of 2.83. This is in the better half of the industry: TXN outperforms 60.87% 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

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.
  • Measured over the past years, TXN shows a small growth in Revenue. The Revenue has been growing by 4.10% on average per year.
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.
  • The Revenue is expected to grow by 10.04% on average over the next years. This is quite good.
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

  • 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.
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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4

4. TXN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 34.67, 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 79.13% of the companies listed in the same industry.
  • TXN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.23.
  • With a Price/Forward Earnings ratio of 28.95, TXN can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 65.22% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.42. TXN is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 34.67
Fwd PE 28.95
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.
  • Based on the Price/Free Cash Flow ratio, TXN is valued a bit cheaper than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF 65.98
EV/EBITDA 21.86
TXN Per share dataTXN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent 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 20.73% in the coming years.
PEG (NY)1.76
PEG (5Y)N/A
EPS Next 2Y20.34%
EPS Next 3Y20.73%

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

7

5. TXN Dividend Analysis

5.1 Amount

  • TXN has a Yearly Dividend Yield of 3.02%. 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 0.50. 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 3.02%

5.2 History

  • The dividend of TXN is nicely growing with an annual growth rate of 8.24%!
  • 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 Years21
Div Non Decr Years26
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 2Y20.34%
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 (3/23/2026, 3:43:14 PM)

After market: 188.63 0 (0%)

188.63

+1.44 (+0.77%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-27
Earnings (Next)04-21
Inst Owners92.39%
Inst Owner Change1.67%
Ins Owners0.11%
Ins Owner Change2.96%
Market Cap171.74B
Revenue(TTM)17.68B
Net Income(TTM)4.97B
Analysts66.22
Price Target220.13 (16.7%)
Short Float %2.15%
Short Ratio2.41
Dividend
Industry RankSector Rank
Dividend Yield 3.02%
Yearly Dividend5.5
Dividend Growth(5Y)8.24%
DP100.52%
Div Incr Years21
Div Non Decr Years26
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)2.89%
PT rev (3m)16.18%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)8.31%
EPS NY rev (1m)0.64%
EPS NY rev (3m)5.2%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.24%
Valuation
Industry RankSector Rank
PE 34.67
Fwd PE 28.95
P/S 9.71
P/FCF 65.98
P/OCF 24.01
P/B 10.55
P/tB 14.67
EV/EBITDA 21.86
EPS(TTM)5.44
EY2.88%
EPS(NY)6.51
Fwd EY3.45%
FCF(TTM)2.86
FCFY1.52%
OCF(TTM)7.86
OCFY4.17%
SpS19.42
BVpS17.87
TBVpS12.86
PEG (NY)1.76
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 9.16
F-Score7
WACC11.5%
ROIC/WACC1.49
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 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 7 / 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 19.76% 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%.