Texas Instruments
Market Cap
US$177.6b
Last Updated
2021/04/12 22:43 UTC
Data Sources
Company Financials +
Executive Summary
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. More Details
Snowflake Analysis
Solid track record established dividend payer.
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Share Price & News
How has Texas Instruments's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TXN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: TXN's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-2.3%
TXN
-0.7%
US Semiconductor
0.9%
US Market
1 Year Return
78.7%
TXN
86.2%
US Semiconductor
57.9%
US Market
Return vs Industry: TXN underperformed the US Semiconductor industry which returned 86.2% over the past year.
Return vs Market: TXN exceeded the US Market which returned 57.9% over the past year.
Shareholder returns
| TXN | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | -0.7% | 0.9% |
| 30 Day | 10.9% | 8.9% | 2.3% |
| 90 Day | 11.7% | 7.9% | 6.3% |
| 1 Year | 83.8%78.7% | 89.2%86.2% | 60.8%57.9% |
| 3 Year | 102.0%85.9% | 121.6%110.0% | 64.5%53.9% |
| 5 Year | 272.6%226.4% | 335.8%293.4% | 120.9%96.4% |
Long-Term Price Volatility Vs. Market
How volatile is Texas Instruments's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Is Texas Instruments Incorporated's (NASDAQ:TXN) Latest Stock Performance A Reflection Of Its Financial Health?4 weeks ago | Simply Wall St
Texas Instruments (NASDAQ:TXN) Has Gifted Shareholders With A Fantastic 247% Total Return On Their Investment1 month ago | Simply Wall St
Why Texas Instruments Incorporated (NASDAQ:TXN) Could Be Worth WatchingValuation
Is Texas Instruments undervalued compared to its fair value and its price relative to the market?
31.83x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TXN ($192.43) is trading above our estimate of fair value ($121.02)
Significantly Below Fair Value: TXN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TXN is good value based on its PE Ratio (31.8x) compared to the US Semiconductor industry average (39.6x).
PE vs Market: TXN is poor value based on its PE Ratio (31.8x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: TXN is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: TXN is overvalued based on its PB Ratio (19.3x) compared to the US Semiconductor industry average (5.1x).
Future Growth
How is Texas Instruments forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
7.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TXN's forecast earnings growth (7.5% per year) is above the savings rate (2%).
Earnings vs Market: TXN's earnings (7.5% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: TXN's earnings are forecast to grow, but not significantly.
Revenue vs Market: TXN's revenue (7.9% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: TXN's revenue (7.9% 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 (70.6%).
Past Performance
How has Texas Instruments performed over the past 5 years?
11.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TXN has high quality earnings.
Growing Profit Margin: TXN's current net profit margins (38.5%) are higher than last year (34.7%).
Past Earnings Growth Analysis
Earnings Trend: TXN's earnings have grown by 11.6% per year over the past 5 years.
Accelerating Growth: TXN's earnings growth over the past year (11.7%) exceeds its 5-year average (11.6% per year).
Earnings vs Industry: TXN earnings growth over the past year (11.7%) underperformed the Semiconductor industry 30%.
Return on Equity
High ROE: TXN's Return on Equity (60.9%) is considered outstanding.
Financial Health
How is Texas Instruments's financial position?
Financial Position Analysis
Short Term Liabilities: TXN's short term assets ($10.2B) exceed its short term liabilities ($2.4B).
Long Term Liabilities: TXN's short term assets ($10.2B) exceed its long term liabilities ($7.8B).
Debt to Equity History and Analysis
Debt Level: TXN's debt to equity ratio (74%) is considered high.
Reducing Debt: TXN's debt to equity ratio has increased from 41.4% to 74% over the past 5 years.
Debt Coverage: TXN's debt is well covered by operating cash flow (90.3%).
Interest Coverage: TXN's interest payments on its debt are well covered by EBIT (31.2x coverage).
Balance Sheet
Dividend
What is Texas Instruments's current dividend yield, its reliability and sustainability?
2.12%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TXN's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: TXN's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (61.5%), TXN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TXN's dividends in 3 years are forecast to be covered by earnings (59.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.7yrs
Average management tenure
CEO
Rich Templeton (61 yo)
2.75yrs
Tenure
US$19,056,652
Compensation
Mr. Richard K. Templeton, also known as Rich, serves as the Chief Executive Officer and President of Texas Instruments Inc. since July 17, 2018. Mr. Templeton joined Texas Instruments Inc. in 1980 in the S...
CEO Compensation Analysis
Compensation vs Market: Rich's total compensation ($USD19.06M) is above average for companies of similar size in the US market ($USD10.98M).
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 (3.7 years average tenure).
Board Members
Experienced Board: TXN's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TXN insiders have sold more shares than they have bought 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Texas Instruments Incorporated
- Ticker: TXN
- Exchange: NasdaqGS
- Founded: 1930
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: US$177.614b
- Shares outstanding: 923.01m
- Website: https://www.ti.com
Number of Employees
Location
- Texas Instruments Incorporated
- 12500 TI Boulevard
- Dallas
- Texas
- 75243
- United States
Listings
Biography
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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/12 22:43 |
| End of Day Share Price | 2021/04/12 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.