191.58 USD
+2.46 (+1.3%)
191.58 USD
0 (0%)
Taking everything into account, TXN scores 6 out of 10 in our fundamental rating. TXN was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. TXN has an excellent profitability rating, but there are some minor concerns on its financial health. TXN is quite expensive at the moment. It does show a decent growth rate. Finally TXN also has an excellent dividend rating. With these ratings, TXN could be worth investigating further for dividend investing!.
1. Profitability
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.
- In the past 5 years TXN always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 14.33%, TXN belongs to the best of the industry, outperforming 88.50% of the companies in the same industry.
- TXN has a Return On Equity of 30.17%. This is amongst the best in the industry. TXN outperforms 92.04% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 16.57%, TXN belongs to the top of the industry, outperforming 91.15% of the companies in the same industry.
- TXN had an Average Return On Invested Capital over the past 3 years of 24.88%. This 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 Profit Margin of 29.05%. This is amongst the best in the industry. TXN outperforms 88.50% of its industry peers.
- TXN's Profit Margin has declined in the last couple of years.
- TXN has a Operating Margin of 34.82%. This is amongst the best in the industry. TXN outperforms 92.92% of its industry peers.
- TXN's Operating Margin has declined in the last couple of years.
- The Gross Margin of TXN (57.48%) is better than 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TXN is creating value.
- The number of shares outstanding for TXN has been increased compared to 1 year ago.
- TXN has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TXN is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 9.21 indicates that TXN is not in any danger for bankruptcy at the moment.
- The Altman-Z score of TXN (9.21) is better than 67.26% of its industry peers.
- TXN has a debt to FCF ratio of 6.75. This is a slightly negative value and a sign of low solvency as TXN would need 6.75 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 6.75, TXN perfoms like the industry average, outperforming 53.98% of the companies in the same industry.
- TXN has a Debt/Equity ratio of 0.81. This is a neutral value indicating TXN is somewhat dependend on debt financing.
- TXN has a Debt to Equity ratio of 0.81. This is amonst the worse of the industry: TXN underperforms 81.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 9.21 |
ROIC/WACC1.55
WACC10.7%
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.
- With a decent Current ratio value of 4.45, TXN is doing good in 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.
- The Quick ratio of TXN (2.90) is better than 61.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.45 | ||
| Quick Ratio | 2.9 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.67% over the past year.
- 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
- Based on estimates for the next years, TXN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.13% on average per year.
- Based on estimates for the next years, TXN will show a quite strong growth in Revenue. The Revenue will grow by 10.26% on average per year.
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 3Y10.82%
Revenue Next 5Y10.26%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 35.02 indicates a quite expensive valuation of TXN.
- TXN's Price/Earnings ratio is a bit cheaper when compared to the industry. TXN is cheaper than 76.99% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. TXN is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 30.97, which means the current valuation is very expensive for TXN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 69.03% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. TXN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.02 | ||
| Fwd PE | 30.97 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXN indicates a somewhat cheap valuation: TXN is cheaper than 72.57% of the companies listed in the same industry.
- TXN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.69 | ||
| EV/EBITDA | 22.95 |
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)5.28
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y13.64%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.00%, TXN has a reasonable but not impressive dividend return.
- TXN's Dividend Yield is rather good when compared to the industry average which is at 0.51. TXN pays more dividend than 95.58% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, TXN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
- The dividend of TXN is nicely growing with an annual growth rate of 10.46%!
- 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)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.
- The dividend of TXN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP98.66%
EPS Next 2Y9.18%
EPS Next 3Y13.64%
191.58
+2.46 (+1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)01-27 2026-01-27/amc
Inst Owners90.72%
Inst Owner Change0.11%
Ins Owners0.1%
Ins Owner Change-0.17%
Market Cap174.07B
Revenue(TTM)17.27B
Net Income(TTM)5.02B
Analysts65.91
Price Target189.65 (-1.01%)
Short Float %2.16%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend5.27
Dividend Growth(5Y)10.46%
DP98.66%
Div Incr Years21
Div Non Decr Years26
Ex-Date01-30 2026-01-30 (1.42)
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)0.09%
PT rev (3m)-7.32%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-9.32%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-1.97%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.02 | ||
| Fwd PE | 30.97 | ||
| P/S | 10.08 | ||
| P/FCF | 83.69 | ||
| P/OCF | 25.24 | ||
| P/B | 10.47 | ||
| P/tB | 14.47 | ||
| EV/EBITDA | 22.95 |
EPS(TTM)5.47
EY2.86%
EPS(NY)6.19
Fwd EY3.23%
FCF(TTM)2.29
FCFY1.19%
OCF(TTM)7.59
OCFY3.96%
SpS19
BVpS18.3
TBVpS13.24
PEG (NY)5.28
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 | 9.21 |
F-Score7
WACC10.7%
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 3Y10.82%
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%.