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TXN

Texas Instruments NasdaqGS:TXN Stock Report

Last Price

US$148.54

Market Cap

US$137.0b

7D

-4.8%

1Y

-22.7%

Updated

03 Jul, 2022

Data

Company Financials +
TXN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends5/6

TXN Stock Overview

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide.

Texas Instruments Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Texas Instruments
Historical stock prices
Current Share PriceUS$148.54
52 Week HighUS$202.26
52 Week LowUS$147.02
Beta0.94
1 Month Change-15.95%
3 Month Change-18.42%
1 Year Change-22.72%
3 Year Change28.33%
5 Year Change89.27%
Change since IPO6,174.96%

Recent News & Updates

Jun 06
What Is Texas Instruments Incorporated's (NASDAQ:TXN) Share Price Doing?

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...

May 23

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.

May 16

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

TXNUS SemiconductorUS 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

Is TXN's price volatile compared to industry and market?
TXN volatility
TXN Average Weekly Movement4.3%
Semiconductor Industry Average Movement8.7%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.3%

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

FoundedEmployeesCEOWebsite
193031,000Rich Templetonhttps://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

How do Texas Instruments's earnings and revenue compare to its market cap?
TXN fundamental statistics
Market CapUS$136.97b
Earnings (TTM)US$8.18b
Revenue (TTM)US$18.96b

16.7x

P/E Ratio

7.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TXN income statement (TTM)
RevenueUS$18.96b
Cost of RevenueUS$5.94b
Gross ProfitUS$13.02b
Other ExpensesUS$4.84b
EarningsUS$8.18b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.87
Gross Margin68.68%
Net Profit Margin43.16%
Debt/Equity Ratio55.2%

How did TXN perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

49%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TXN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation 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.

TXN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.1x
Enterprise Value/EBITDA12.7x
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
The above table shows the PE ratio for TXN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.5x
INTC Intel
6x-3.4%US$148.6b
QCOM QUALCOMM
12.4x1.5%US$138.4b
AVGO Broadcom
22.4x9.9%US$193.0b
ADI Analog Devices
45.2x11.9%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.

TXN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.7x
Fair PE Ratio20.5x

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

1/6

Future 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

5/6

Past 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.


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Financial Health

How is Texas Instruments's financial position?

Financial Health Score

5/6

Financial 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

5/6

Dividend 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.