188.53 USD
-0.54 (-0.29%)
188.608 USD
+0.08 (+0.04%)
We assign a fundamental rating of 6 out of 10 to TXN. TXN was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While TXN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TXN is valied quite expensively at the moment, while it does show a decent growth rate. TXN also has an excellent dividend rating. These ratings could make TXN a good candidate 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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.33%, TXN belongs to the top of the industry, outperforming 88.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 30.17%, TXN belongs to the top of the industry, outperforming 92.04% of the companies in the same industry.
TXN has a better Return On Invested Capital (16.57%) than 91.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXN is significantly above the industry average of 10.75%.
The 3 year average ROIC (24.88%) for TXN is well above the current ROIC(16.57%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.33% | ||
| ROE | 30.17% | ||
| ROIC | 16.57% |
ROA(3y)21.83%
ROA(5y)25.12%
ROE(3y)42.11%
ROE(5y)48.99%
ROIC(3y)24.88%
ROIC(5y)28.23%
1.3 Margins
TXN has a better Profit Margin (29.05%) than 88.50% of its industry peers.
TXN's Profit Margin has declined in the last couple of years.
TXN's Operating Margin of 34.82% is amongst the best of the industry. TXN outperforms 92.92% of its industry peers.
TXN's Operating Margin has declined in the last couple of years.
TXN's Gross Margin of 57.48% is amongst the best of the industry. TXN outperforms 81.42% of its industry peers.
TXN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.82% | ||
| PM (TTM) | 29.05% | ||
| GM | 57.48% |
OM growth 3Y-11.42%
OM growth 5Y-2.89%
PM growth 3Y-10.21%
PM growth 5Y-2.51%
GM growth 3Y-4.84%
GM growth 5Y-1.81%
2. Health
2.1 Basic Checks
TXN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, TXN has more shares outstanding
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 9.13 indicates that TXN is not in any danger for bankruptcy at the moment.
TXN has a Altman-Z score of 9.13. This is in the better half of the industry: TXN outperforms 67.26% of its industry peers.
The Debt to FCF ratio of TXN is 6.75, which is on the high side as it means it would take TXN, 6.75 years of fcf income to pay off all of its debts.
TXN has a Debt to FCF ratio of 6.75. This is comparable to the rest of the industry: TXN outperforms 53.98% of its industry peers.
TXN has a Debt/Equity ratio of 0.81. This is a neutral value indicating TXN is somewhat dependend on debt financing.
TXN's Debt to Equity ratio of 0.81 is on the low side compared to the rest of the industry. TXN is outperformed by 81.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 9.13 |
ROIC/WACC1.55
WACC10.66%
2.3 Liquidity
TXN has a Current Ratio of 4.45. 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 4.45, TXN is in the better half of the industry, outperforming 66.37% of the companies in the same industry.
A Quick Ratio of 2.90 indicates that TXN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.90, TXN is in the better half of the industry, outperforming 61.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 2.9 |
3. Growth
3.1 Past
TXN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.67%.
TXN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.90%.
The Revenue has been growing slightly by 1.69% on average over the past years.
EPS 1Y (TTM)1.67%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%0.68%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%14.24%
3.2 Future
The Earnings Per Share is expected to grow by 17.13% on average over the next years. This is quite good.
TXN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.26% yearly.
EPS Next Y6.63%
EPS Next 2Y9.18%
EPS Next 3Y13.64%
EPS Next 5Y17.13%
Revenue Next Year14.1%
Revenue Next 2Y10.99%
Revenue Next 3Y10.88%
Revenue Next 5Y10.26%
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.
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
Based on the Price/Earnings ratio of 34.47, the valuation of TXN can be described as expensive.
Based on the Price/Earnings ratio, TXN is valued a bit cheaper than 76.99% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TXN is valued a bit more expensive.
With a Price/Forward Earnings ratio of 30.48, TXN can be considered very expensive at the moment.
TXN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TXN is cheaper than 65.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.04. TXN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 30.48 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.36 | ||
| EV/EBITDA | 22.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TXN has an outstanding 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 13.64% in the coming years.
PEG (NY)5.2
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
TXN has a Yearly Dividend Yield of 3.01%.
TXN's Dividend Yield is rather good when compared to the industry average which is at 0.53. TXN pays more dividend than 95.58% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, TXN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
On average, the dividend of TXN grows each year by 10.46%, 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)10.46%
Div Incr Years21
Div Non Decr Years26
5.3 Sustainability
98.66% 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.
DP98.66%
EPS Next 2Y9.18%
EPS Next 3Y13.64%
188.53
-0.54 (-0.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.72%
Inst Owner Change0.15%
Ins Owners0.1%
Ins Owner Change-0.17%
Market Cap171.30B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts65.91
Price Target189.05 (0.28%)
Short Float %2.16%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend5.27
Dividend Growth(5Y)10.46%
DP98.66%
Div Incr Years21
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.76%
Min EPS beat(2)-1.62%
Max EPS beat(2)3.14%
EPS beat(4)3
Avg EPS beat(4)6.78%
Min EPS beat(4)-1.62%
Max EPS beat(4)18.72%
EPS beat(8)7
Avg EPS beat(8)6.02%
EPS beat(12)11
Avg EPS beat(12)5.31%
EPS beat(16)15
Avg EPS beat(16)6.38%
Revenue beat(2)2
Avg Revenue beat(2)1.12%
Min Revenue beat(2)1.09%
Max Revenue beat(2)1.15%
Revenue beat(4)4
Avg Revenue beat(4)1.91%
Min Revenue beat(4)1.09%
Max Revenue beat(4)3.01%
Revenue beat(8)5
Avg Revenue beat(8)0.6%
Revenue beat(12)7
Avg Revenue beat(12)0.4%
Revenue beat(16)11
Avg Revenue beat(16)1.75%
PT rev (1m)-0.22%
PT rev (3m)-7.61%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-9.34%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.47 | ||
| Fwd PE | 30.48 | ||
| P/S | 9.92 | ||
| P/FCF | 82.36 | ||
| P/OCF | 24.84 | ||
| P/B | 10.3 | ||
| P/tB | 14.24 | ||
| EV/EBITDA | 22.66 |
EPS(TTM)5.47
EY2.9%
EPS(NY)6.19
Fwd EY3.28%
FCF(TTM)2.29
FCFY1.21%
OCF(TTM)7.59
OCFY4.03%
SpS19
BVpS18.3
TBVpS13.24
PEG (NY)5.2
PEG (5Y)N/A
Graham Number47.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.33% | ||
| ROE | 30.17% | ||
| ROCE | 18.85% | ||
| ROIC | 16.57% | ||
| ROICexc | 19.79% | ||
| ROICexgc | 23.91% | ||
| OM | 34.82% | ||
| PM (TTM) | 29.05% | ||
| GM | 57.48% | ||
| FCFM | 12.05% |
ROA(3y)21.83%
ROA(5y)25.12%
ROE(3y)42.11%
ROE(5y)48.99%
ROIC(3y)24.88%
ROIC(5y)28.23%
ROICexc(3y)37.04%
ROICexc(5y)45.04%
ROICexgc(3y)50.11%
ROICexgc(5y)68.14%
ROCE(3y)28.31%
ROCE(5y)32.12%
ROICexgc growth 3Y-37.97%
ROICexgc growth 5Y-22.81%
ROICexc growth 3Y-32.93%
ROICexc growth 5Y-16.48%
OM growth 3Y-11.42%
OM growth 5Y-2.89%
PM growth 3Y-10.21%
PM growth 5Y-2.51%
GM growth 3Y-4.84%
GM growth 5Y-1.81%
F-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 256.63% | ||
| Cap/Sales | 27.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.43% | ||
| Profit Quality | 41.47% | ||
| Current Ratio | 4.45 | ||
| Quick Ratio | 2.9 | ||
| Altman-Z | 9.13 |
F-Score7
WACC10.66%
ROIC/WACC1.55
Cap/Depr(3y)333.46%
Cap/Depr(5y)264.77%
Cap/Sales(3y)24.58%
Cap/Sales(5y)18.33%
Profit Quality(3y)40.07%
Profit Quality(5y)60.03%
High Growth Momentum
Growth
EPS 1Y (TTM)1.67%
EPS 3Y-14.28%
EPS 5Y0%
EPS Q2Q%0.68%
EPS Next Y6.63%
EPS Next 2Y9.18%
EPS Next 3Y13.64%
EPS Next 5Y17.13%
Revenue 1Y (TTM)9.9%
Revenue growth 3Y-5.17%
Revenue growth 5Y1.69%
Sales Q2Q%14.24%
Revenue Next Year14.1%
Revenue Next 2Y10.99%
Revenue Next 3Y10.88%
Revenue Next 5Y10.26%
EBIT growth 1Y9.37%
EBIT growth 3Y-16.01%
EBIT growth 5Y-1.25%
EBIT Next Year48.66%
EBIT Next 3Y25.46%
EBIT Next 5Y22.29%
FCF growth 1Y26.21%
FCF growth 3Y-38.03%
FCF growth 5Y-23.72%
OCF growth 1Y5.49%
OCF growth 3Y-10.31%
OCF growth 5Y-1.02%
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 6.63% 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 98.66%.