Texas Instruments (NasdaqGS:TXN) - Share price, News & Analysis

TXN fundamental analysis
Snowflake Score
Valuation	3/6
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.

Rewards

Price-To-Earnings ratio (17.6x) is below the Semiconductor industry average (17.8x)

Earnings have grown 13.5% per year over the past 5 years

Pays a reliable dividend of 2.95%

Risk Analysis

Earnings are forecast to decline by an average of 2.2% per year for the next 3 years

Significant insider selling over the past 3 months

Texas Instruments Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Texas Instruments
Historical stock prices
Current Share Price	US$155.95
52 Week High	US$202.26
52 Week Low	US$149.10
Beta	0.94
1 Month Change	-8.27%
3 Month Change	-15.66%
1 Year Change	-17.12%
3 Year Change	35.89%
5 Year Change	102.72%
Change since IPO	6,487.99%

Recent News & Updates

Jun 06

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

	TXN	US Semiconductor	US Market
7D	3.8%	5.4%	6.6%
1Y	-17.1%	-13.5%	-18.5%

Return vs Industry: TXN matched the US Semiconductor industry which returned -17.4% over the past year.

Return vs Market: TXN exceeded the US Market which returned -20.5% over the past year.

Price Volatility

Is TXN's price volatile compared to industry and market?
TXN volatility
TXN Average Weekly Movement	4.2%
Semiconductor Industry Average Movement	8.3%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

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

How do Texas Instruments's earnings and revenue compare to its market cap?
TXN fundamental statistics
Market Cap	US$139.37b
Earnings (TTM)	US$8.18b
Revenue (TTM)	US$18.96b

17.6x

P/E Ratio

7.6x

P/S Ratio

Is TXN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
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 comparison

Dividends

2.9%

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

3/6

Valuation Score 3/6

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.

The above table shows the n/a ratio for TXN. This is calculated by dividing TXN's market cap by their current preferred multiple.
What is TXN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$139.37b

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/Revenue	7.2x
Enterprise Value/EBITDA	12.9x
PEG Ratio	-8x

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.
Company	PE	Estimated Growth	Market Cap
Peer Average	22.5x

Forward PE

Price-To-Earnings vs Peers: TXN is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

How does TXN's PE Ratio compare vs other companies in the U.S. Semiconductor Industry?

Price-To-Earnings vs Industry: TXN is good value based on its Price-To-Earnings Ratio (17.6x) compared to the US Semiconductor industry average (17.8x)

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 Ratio	17.6x
Fair PE Ratio	20.6x

Price-To-Earnings vs Fair Ratio: TXN is good value based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).

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 ($155.95) is trading above our estimate of fair value ($130.8)

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 27 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

-2.2%

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 (-2.2% per year).

Earnings vs Market: TXN's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: TXN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TXN's revenue (2.7% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: TXN's revenue (2.7% 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

2.95%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TXN's dividend (2.95%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: TXN's dividend (2.95%) is low compared to the top 25% of dividend payers in the US market (4.34%).

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.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure

CEO

Rich Templeton (62 yo)

3.92yrs

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 ($USD19.20M) is above average for companies of similar size in the US market ($USD13.59M).

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 (4.4 years average tenure).

Board Members

Experienced Board: TXN's board of directors are considered experienced (7.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31