Brief Commentary On Texas Instruments Incorporated’s (NASDAQ:TXN) Fundamentals

Attractive stocks have exceptional fundamentals. In the case of Texas Instruments Incorporated (NASDAQ:TXN), there’s is a financially-sound , dividend-paying company with an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Texas Instruments here.

Outstanding track record established dividend payer

Over the past year, TXN has grown its earnings by 21%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 63%, which is an notable feat for the company. TXN’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that TXN has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. TXN’s has produced operating cash levels of 1.23x total debt over the past year, which implies that TXN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NasdaqGS:TXN Income Statement, August 8th 2019
NasdaqGS:TXN Income Statement, August 8th 2019

Income investors would also be happy to know that TXN is a great dividend company, with a current yield standing at 2.6%. TXN has also been regularly increasing its dividend payments to shareholders over the past decade.

NasdaqGS:TXN Historical Dividend Yield, August 8th 2019
NasdaqGS:TXN Historical Dividend Yield, August 8th 2019

Next Steps:

For Texas Instruments, I’ve compiled three relevant factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for TXN’s future growth? Take a look at our free research report of analyst consensus for TXN’s outlook.
  2. Valuation: What is TXN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TXN is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TXN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.