| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
TXN Stock Overview
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide.
Texas Instruments Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$148.54 |
| 52 Week High | US$202.26 |
| 52 Week Low | US$147.02 |
| Beta | 0.94 |
| 1 Month Change | -15.95% |
| 3 Month Change | -18.42% |
| 1 Year Change | -22.72% |
| 3 Year Change | 28.33% |
| 5 Year Change | 89.27% |
| Change since IPO | 6,174.96% |
Recent News & Updates
What Is Texas Instruments Incorporated's (NASDAQ:TXN) Share Price Doing?
Let's talk about the popular Texas Instruments Incorporated ( NASDAQ:TXN ). The company's shares received a lot of...
Texas Instruments: Automotive Growth Continues
We focused on its automotive business and analyzed its products including power semiconductors and see its advantage with a wide product breadth against competitors and projected its growth at 7%. Additionally, we looked at its SoCs and compared them against stronger competitors based on performance but still expect it to benefit from the market growth at 8%. Lastly, we highlighted its strong product development for its MCU portfolio and forecasted its total automotive segment growth at 8.6% in 2022.
3 Reasons Why Texas Instruments Is A Must-Have In Your Portfolio
Long track record of increasing dividend payments and share buybacks. Both gross margin and net income margin are improving. Market leader in both analog and embedded processors. Appears undervalued according to price multiples with a 15%-30% upside potential.
Shareholder Returns
| TXN | US Semiconductor | US Market | |
|---|---|---|---|
| 7D | -4.8% | -9.5% | -2.5% |
| 1Y | -22.7% | -24.2% | -21.2% |
Return vs Industry: TXN exceeded the US Semiconductor industry which returned -24.2% over the past year.
Return vs Market: TXN underperformed the US Market which returned -21.2% over the past year.
Price Volatility
| TXN volatility | |
|---|---|
| TXN Average Weekly Movement | 4.3% |
| Semiconductor Industry Average Movement | 8.7% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.3% |
Stable Share Price: TXN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TXN's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1930 | 31,000 | Rich Templeton | https://www.ti.com |
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage supervisors, voltage references, and lighting products.
Texas Instruments Fundamentals Summary
| TXN fundamental statistics | |
|---|---|
| Market Cap | US$136.97b |
| Earnings (TTM) | US$8.18b |
| Revenue (TTM) | US$18.96b |
16.7x
P/E Ratio7.2x
P/S RatioIs TXN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TXN income statement (TTM) | |
|---|---|
| Revenue | US$18.96b |
| Cost of Revenue | US$5.94b |
| Gross Profit | US$13.02b |
| Other Expenses | US$4.84b |
| Earnings | US$8.18b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 8.87 |
| Gross Margin | 68.68% |
| Net Profit Margin | 43.16% |
| Debt/Equity Ratio | 55.2% |
How did TXN perform over the long term?
See historical performance and comparisonDividends
3.1%
Current Dividend Yield49%
Payout RatioValuation
Is TXN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TXN?
Other financial metrics that can be useful for relative valuation.
| What is TXN's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$136.97b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 7.1x |
| Enterprise Value/EBITDA | 12.7x |
| PEG Ratio | -6.7x |
Price to Earnings Ratio vs Peers
How does TXN's PE Ratio compare to its peers?
| TXN PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 21.5x | ||
INTC Intel | 6x | -3.4% | US$148.6b |
QCOM QUALCOMM | 12.4x | 1.5% | US$138.4b |
AVGO Broadcom | 22.4x | 9.9% | US$193.0b |
ADI Analog Devices | 45.2x | 11.9% | US$74.3b |
TXN Texas Instruments | 16.7x | -2.5% | US$137.0b |
Price-To-Earnings vs Peers: TXN is good value based on its Price-To-Earnings Ratio (16.7x) compared to the peer average (21.5x).
Price to Earnings Ratio vs Industry
How does TXN's PE Ratio compare vs other companies in the US Semiconductor Industry?
Price-To-Earnings vs Industry: TXN is expensive based on its Price-To-Earnings Ratio (16.7x) compared to the US Semiconductor industry average (16.7x)
Price to Earnings Ratio vs Fair Ratio
What is TXN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 16.7x |
| Fair PE Ratio | 20.5x |
Price-To-Earnings vs Fair Ratio: TXN is good value based on its Price-To-Earnings Ratio (16.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).
Share Price vs Fair Value
What is the Fair Price of TXN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TXN ($148.54) is trading above our estimate of fair value ($133.79)
Significantly Below Fair Value: TXN is trading above our estimate of fair value.
Price to Earnings Growth Ratio
PEG Ratio: TXN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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Future Growth
How is Texas Instruments forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-2.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TXN's earnings are forecast to decline over the next 3 years (-2.5% per year).
Earnings vs Market: TXN's earnings are forecast to decline over the next 3 years (-2.5% per year).
High Growth Earnings: TXN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TXN's revenue (2.5% per year) is forecast to grow slower than the US market (8.2% per year).
High Growth Revenue: TXN's revenue (2.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TXN's Return on Equity is forecast to be very high in 3 years time (46.9%).
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Past Performance
How has Texas Instruments performed over the past 5 years?
Past Performance Score
5/6Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
13.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TXN has high quality earnings.
Growing Profit Margin: TXN's current net profit margins (43.2%) are higher than last year (39.8%).
Past Earnings Growth Analysis
Earnings Trend: TXN's earnings have grown by 13.5% per year over the past 5 years.
Accelerating Growth: TXN's earnings growth over the past year (33.2%) exceeds its 5-year average (13.5% per year).
Earnings vs Industry: TXN earnings growth over the past year (33.2%) underperformed the Semiconductor industry 70.4%.
Return on Equity
High ROE: TXN's Return on Equity (58.6%) is considered outstanding.
Discover strong past performing companies
Financial Health
How is Texas Instruments's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: TXN's short term assets ($14.0B) exceed its short term liabilities ($2.5B).
Long Term Liabilities: TXN's short term assets ($14.0B) exceed its long term liabilities ($8.7B).
Debt to Equity History and Analysis
Debt Level: TXN has more cash than its total debt.
Reducing Debt: TXN's debt to equity ratio has increased from 31.6% to 55.2% over the past 5 years.
Debt Coverage: TXN's debt is well covered by operating cash flow (116.9%).
Interest Coverage: TXN's interest payments on its debt are well covered by EBIT (51.2x coverage).
Balance Sheet
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Dividend
What is Texas Instruments's current dividend yield, its reliability and sustainability?
Dividend Score
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
3.10%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TXN's dividend (3.1%) is higher than the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: TXN's dividend (3.1%) is low compared to the top 25% of dividend payers in the US market (4.25%).
Stability and Growth of Payments
Stable Dividend: TXN's dividends per share have been stable in the past 10 years.
Growing Dividend: TXN's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (49%), TXN's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (65.7%), TXN's dividend payments are covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Rich Templeton (63 yo)
4yrs
Tenure
US$19,195,411
Compensation
Mr. Richard K. Templeton, also known as Rich, serves as the Chief Executive Officer and President of Texas Instruments Inc. since July 17, 2018. Mr. Templeton joined Texas Instruments Inc. in 1980 in the S...
CEO Compensation Analysis
Compensation vs Market: Rich's total compensation ($USD19.20M) is above average for companies of similar size in the US market ($USD13.43M).
Compensation vs Earnings: Rich's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: TXN's management team is considered experienced (4.5 years average tenure).
Board Members
Experienced Board: TXN's board of directors are considered experienced (7.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TXN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Texas Instruments Incorporated's employee growth, exchange listings and data sources
Key Information
- Name: Texas Instruments Incorporated
- Ticker: TXN
- Exchange: NasdaqGS
- Founded: 1930
- Industry: Semiconductors
- Sector: Semiconductors
- Implied Market Cap: US$136.974b
- Shares outstanding: 922.13m
- Website: https://www.ti.com
Number of Employees
Location
- Texas Instruments Incorporated
- 12500 TI Boulevard
- Dallas
- Texas
- 75243
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/07/03 00:00 |
| End of Day Share Price | 2022/07/01 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.