TEXAS INSTRUMENTS INC (TXN) Fundamental Analysis & Valuation

NASDAQ:TXN • US8825081040

193.23 USD
-4.75 (-2.4%)
At close: Mar 6, 2026
193.7 USD
+0.47 (+0.24%)
After Hours: 3/6/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This TXN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Overall TXN gets a fundamental rating of 6 out of 10. We evaluated TXN against 115 industry peers in the Semiconductors & Semiconductor Equipment industry. TXN scores excellent on profitability, but 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. This makes TXN very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

7

1. TXN Profitability Analysis

1.1 Basic Checks

  • TXN had positive earnings in the past year.
  • 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.
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 has a better Return On Assets (14.38%) than 88.70% 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 92.17% of the companies in the same industry.
  • TXN has a Return On Invested Capital of 17.15%. This is amongst the best in the industry. TXN outperforms 92.17% 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 10.50%.
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

  • The Profit Margin of TXN (28.12%) is better than 86.09% of its industry peers.
  • TXN's Profit Margin has declined in the last couple of years.
  • The Operating Margin of TXN (34.72%) is better than 93.91% of its industry peers.
  • 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.
  • 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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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.
  • TXN has less shares outstanding than it did 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 9.47. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 9.47, 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.
  • 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.
  • TXN has a Debt/Equity ratio of 0.83. This is a neutral value indicating 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 81.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.4
Altman-Z 9.47
ROIC/WACC1.54
WACC11.12%
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 65.22% of its industry peers.
  • A Quick Ratio of 2.83 indicates that TXN has no problem at all paying its short term obligations.
  • TXN has a Quick ratio (2.83) which is comparable to the rest of the industry.
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

  • The Earnings Per Share has been growing slightly by 4.82% over the past year.
  • TXN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.31% yearly.
  • TXN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.05%.
  • 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 18.47% yearly.
  • Based on estimates for the next years, TXN will show a quite strong growth in Revenue. The Revenue will grow by 9.70% on average per year.
EPS Next Y18.99%
EPS Next 2Y19.96%
EPS Next 3Y20.01%
EPS Next 5Y18.47%
Revenue Next Year10.46%
Revenue Next 2Y10.49%
Revenue Next 3Y11.12%
Revenue Next 5Y9.7%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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

  • With a Price/Earnings ratio of 35.52, TXN can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, TXN is valued a bit cheaper than the industry average as 77.39% of the companies are valued more expensively.
  • TXN is valuated rather expensively when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 29.85 indicates a quite expensive valuation of TXN.
  • Based on the Price/Forward Earnings ratio, TXN is valued a bit cheaper than the industry average as 62.61% of the companies are valued more expensively.
  • TXN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 35.52
Fwd PE 29.85
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 75.65% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as TXN.
Industry RankSector Rank
P/FCF 67.37
EV/EBITDA 23
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.
  • 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 20.01% in the coming years.
PEG (NY)1.87
PEG (5Y)N/A
EPS Next 2Y19.96%
EPS Next 3Y20.01%

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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 2.67%. 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 0.47. TXN pays more dividend than 95.65% of the companies in the same industry.
  • TXN's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.67%

5.2 History

  • The dividend of TXN is nicely growing with an annual growth rate of 8.24%!
  • 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)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

  • 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 2Y19.96%
EPS Next 3Y20.01%
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 (3/6/2026, 8:00:02 PM)

After market: 193.7 +0.47 (+0.24%)

193.23

-4.75 (-2.4%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)01-27
Earnings (Next)04-21
Inst Owners90.72%
Inst Owner Change1.68%
Ins Owners0.1%
Ins Owner Change2.79%
Market Cap175.37B
Revenue(TTM)17.68B
Net Income(TTM)4.97B
Analysts66.22
Price Target220.13 (13.92%)
Short Float %2.71%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield 2.67%
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)16.07%
PT rev (3m)15.79%
EPS NQ rev (1m)4.41%
EPS NQ rev (3m)8.1%
EPS NY rev (1m)4.5%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)2.23%
Valuation
Industry RankSector Rank
PE 35.52
Fwd PE 29.85
P/S 9.92
P/FCF 67.37
P/OCF 24.52
P/B 10.78
P/tB 14.98
EV/EBITDA 23
EPS(TTM)5.44
EY2.82%
EPS(NY)6.47
Fwd EY3.35%
FCF(TTM)2.87
FCFY1.48%
OCF(TTM)7.88
OCFY4.08%
SpS19.48
BVpS17.93
TBVpS12.9
PEG (NY)1.87
PEG (5Y)N/A
Graham Number46.85
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 9.47
F-Score7
WACC11.12%
ROIC/WACC1.54
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 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 2Y10.49%
Revenue Next 3Y11.12%
Revenue Next 5Y9.7%
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 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 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 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%.