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$167.80|
|52 Week High||US$202.26|
|52 Week Low||US$144.46|
|1 Month Change||2.95%|
|3 Month Change||8.48%|
|1 Year Change||-13.68%|
|3 Year Change||31.67%|
|5 Year Change||80.68%|
|Change since IPO||6,988.58%|
Recent News & Updates
Texas Instruments Can Continue To Outperform Semiconductor Industry
Summary TXN has dramatically outperformed the semiconductor industry (as well as the S&P 500) so far in 2022. Expected earnings growth is muted, but supports solid price appreciation from current levels. The Wall Street consensus rating is somewhat mixed, but the consensus price target implies 18% total return over the next year. The market-implied outlook (calculated from options prices) continues to be bullish. Texas Instruments (TXN) has performed much better than the chip industry so far in 2022. TXN has a total return of -11.8% for the YTD vs. -40.4% for the semiconductor industry as a whole (as calculated by Morningstar) and -37.7% for the iShares Semiconductor ETF (SOXX). TXN is the largest holding in SOXX, making TXN’s relative performance even more notable. For context, the S&P 500 (SPY) has returned a total of -21.1% for the YTD. TXN is currently trading $157.73, 21.6% below the 12-month high closing price of $201.29 on October 21, 2021. Seeking Alpha 12-Month price history and basic statistics for TXN (Source: Seeking Alpha) TXN has grown earnings at a steady clip over the past 3 years, consistently beating analyst expectations. In the most recent earnings report on July 26th, for Q2 of 2022, quarterly EPS exceeded the consensus expected value by 15.7%. The rate of earnings growth has slowed over the past year, and the outlook is for 2023 earnings to fall below the 2022 results. The consensus expectation for EPS growth over the next 3 to 5 years is a modest 6.1% per year. ETrade Historical (3 years) and estimated future quarterly earnings per share ('EPS') for TXN. Green values are amounts by which the quarterly EPS beat the consensus expected value (Source: ETrade) With TXN’s price decline, the shares look reasonably valued relative to current and expected earnings. The forward and TTM P/E are 17.3 and 17.0, respectively, on the low end of TXN’s P/E range over the past 4+ years. This makes sense given the low expected growth rate, however. Income investors should note that the rapid dividend growth in recent years is higher than the expected earnings growth in the next several years. The trailing 3-, 5-, and 10-year dividend growth rates are 14.3%, 18.1%, and 21.1% per year, respectively. With expected EPS growth of 6.1% per year, maintaining anything close to historical dividend growth rates will push up the payout ratio (currently at 47.6%). The current payout ratio is somewhat below TXN’s 5-year averages, 57.2% (GAAP) and 54.6% (non-GAAP), so there is some room for an increase. That said, in difficult economic periods, companies may prefer to build up some cash reserves and strengthen their balance sheets rather than raising the payout ratio. TXN’s board recently approved an additional $15B in buybacks, which will constrain dividend growth rates. For income investors, buybacks tend to increase the relative attractiveness of selling covered calls relative to dividends. I last wrote about TXN on July 27, 2021, about 14 months ago, at which time I assigned a buy rating on the shares. Since the close on July 27th, TXN has returned a total of -12.5% vs. -16% for the S&P 500 and -25.2% for the iShares Semiconductor ETF. I calculated these results using dividend-adjusted closing prices from Yahoo! Finance and current trading prices TXN, SPY, and SOXX. Seeking Alpha Previous analysts of TXN and subsequent performance vs. the S&P 500 (Source: Seeking Alpha) For my July 27, 2021 analysis, TXN’s valuation was a concern, but the strong earnings growth track record and EPS growth consistently above expectations helped to offset this issue. The Wall Street consensus rating for TXN was a buy, and the consensus 12-month price target was 9.2% (Seeking Alpha) to 12.7% (ETrade) above the share price at that time. I also rely on a probabilistic outlook derived from the prices of call and put options on a stock, the market-implied outlook, which represents the consensus view among buyers and sellers of options. The market-implied outlook to early 2022 was bullish, with expected volatility of 27% (annualized). As a rule of thumb for a buy rating, I want to see an expected total return that is at least ½ the expected volatility. Taking the Wall Street consensus price targets and adding the dividend (for a total return range of 11.4% to 14.9%), TXN reached that threshold at the higher end of the consensus range. Considering the company’s robust earnings track record and the bullish views from the Wall Street consensus and the market-implied outlook, I assigned an overall buy rating. For readers who are unfamiliar with the market-implied outlook, a brief explanation is needed. The price of an option on a stock is largely determined by the market’s consensus estimate of the probability that the stock price will rise above (call option) or fall below (put option) a specific level (the option strike price) between now and when the option expires. By analyzing the prices of call and put options at a range of strike prices, all with the same expiration date, it is possible to calculate a probabilistic price forecast that reconciles the options prices. This is the market-implied outlook. For a deeper explanation and background, I recommend this monograph published by the CFA Institute. I have calculated updated market-implied outlooks for TXN and compared these with the current Wall Street consensus outlooks in revisiting my rating. Wall Street Consensus Outlook for TXN ETrade calculates the Wall Street consensus outlook for TXN using ratings and price targets from 19 analysts who have published their views over the past 3 months. The consensus rating is a buy, as it has been for almost all of the past year. The consensus 12-month price target is 14.7% above the current share price. There is a high dispersion among the individual analyst price targets, reducing confidence in the predictive value of the consensus. ETrade Wall Street analyst consensus rating and 12-month price target for TXN (Source: ETrade) Seeking Alpha’s version of the Wall Street consensus outlook combines the views of 31 analysts who have published price targets and ratings over the past 90 days. The consensus rating is a hold, having shifted from a buy in early 2022. The consensus 12-month price target is 15.3% above the current share price. Seeking Alpha Wall Street analyst consensus rating and 12-month price target for TXN (Source: Seeking Alpha) Even though ETrade and Seeking Alpha calculate different consensus ratings for TXN, the consensus 12-month price targets are very close. With a consensus price target that is 15% above the current share price and the 3% forward dividend yield, the expected 12-month total return is 18%. Market-Implied Outlook for TXN I have calculated the market-implied outlook for TXN for the 3.7-month period from now until January 20, 2023 and for the 8.5-month period from now until June 16, 2023, using the prices of call and put options that expire on these dates. I selected these two dates to provide a view to the start and middle of 2023, as well as because the options expiring in January and June tend to be among the most liquid. The trading volume for the June options is much lower than for the January options, reducing the relative weight that I give to the 8.5-month outlook. The standard presentation of the market-implied outlook is a probability distribution of price return, with probability on the vertical axis and return on the horizontal. Geoff Considine Market-implied price return probabilities for TXN for the 3.7-month period from now until January 20, 2023 (Source: Author’s calculations using options quotes from ETrade) The market-implied outlook for the next 3.7 months is generally symmetric, with comparable probabilities of positive and negative returns. The expected volatility calculated from this distribution is 36.5% (annualized) as compared to 27% in my last analysis. Most, if not all, of the increase in expected volatility is due to broader market conditions, with the VIX increasing substantially over the past year. To make it easier to compare the relative probabilities of positive and negative returns, I rotate the negative return side of the distribution about the vertical axis (see chart below). Geoff Considine Market-implied price return probabilities for TXN for the 3.7-month period from now until January 20, 2023. The negative return side of the distribution has been rotated about the vertical axis (Source: Author’s calculations using options quotes from ETrade) This view shows that the probabilities of positive returns are consistently higher than the probabilities of negative returns of the same size (the solid blue line is above the dashed red line over almost all of the chart above). This is a bullish tilt in the market-implied outlook.
Texas Instruments' (NASDAQ:TXN) Shareholders Will Receive A Bigger Dividend Than Last Year
Texas Instruments Incorporated ( NASDAQ:TXN ) has announced that it will be increasing its dividend from last year's...
Texas Instruments raised dividend by 8% to $1.24 and authorized $15B buyback
Texas Instruments (NASDAQ:TXN) declares $1.24/share quarterly dividend, 7.8% increase from prior dividend of $1.15. Forward yield 3.05% Payable Nov. 15; for shareholders of record Oct. 31; ex-div Oct. 28. Board of directors also authorized to repurchase an additional $15B stock over time. This is in addition to ~$8.2B of previously authorized repurchases that remained at the end of June 2022. See TXN Dividend Scorecard, Yield Chart, & Dividend Growth.
|TXN||US Semiconductor||US Market|
Return vs Industry: TXN exceeded the US Semiconductor industry which returned -22.4% over the past year.
Return vs Market: TXN exceeded the US Market which returned -18.2% over the past year.
|TXN Average Weekly Movement||4.5%|
|Semiconductor Industry Average Movement||8.0%|
|Market Average Movement||7.0%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.9%|
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.
About the Company
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|
Is TXN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TXN income statement (TTM)|
|Cost of Revenue||US$6.02b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||9.35|
|Net Profit Margin||43.59%|
How did TXN perform over the long term?See historical performance and comparison
3.0%Current Dividend Yield
Does TXN pay a reliable dividends?See TXN dividend history and benchmarks
|Texas Instruments dividend dates|
|Ex Dividend Date||Oct 28 2022|
|Dividend Pay Date||Nov 15 2022|
|Days until Ex dividend||22 days|
|Days until Dividend pay date||40 days|
Does TXN pay a reliable dividends?See TXN dividend history and benchmarks
Is TXN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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?|
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|
ADI Analog Devices
TXN Texas Instruments
Price-To-Earnings vs Peers: TXN is good value based on its Price-To-Earnings Ratio (18x) compared to the peer average (19.6x).
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 (18x) compared to the US Semiconductor industry average (16.1x)
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.
|Current PE Ratio||18x|
|Fair PE Ratio||20.8x|
Price-To-Earnings vs Fair Ratio: TXN is good value based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).
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 ($167.8) is trading above our estimate of fair value ($140.05)
Significantly Below Fair Value: TXN is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Texas Instruments forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (-3.3% per year).
Earnings vs Market: TXN's earnings are forecast to decline over the next 3 years (-3.3% per year).
High Growth Earnings: TXN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TXN's revenue (1.7% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: TXN's revenue (1.7% 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 (41.7%).
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How has Texas Instruments performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TXN has a high level of non-cash earnings.
Growing Profit Margin: TXN's current net profit margins (43.6%) are higher than last year (39.9%).
Past Earnings Growth Analysis
Earnings Trend: TXN's earnings have grown by 14.5% per year over the past 5 years.
Accelerating Growth: TXN's earnings growth over the past year (27.5%) exceeds its 5-year average (14.5% per year).
Earnings vs Industry: TXN earnings growth over the past year (27.5%) underperformed the Semiconductor industry 49.2%.
Return on Equity
High ROE: TXN's Return on Equity (60.9%) is considered outstanding.
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How is Texas Instruments's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: TXN's short term assets ($13.0B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: TXN's short term assets ($13.0B) exceed its long term liabilities ($8.1B).
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 33.5% to 51.4% over the past 5 years.
Debt Coverage: TXN's debt is well covered by operating cash flow (120.1%).
Interest Coverage: TXN's interest payments on its debt are well covered by EBIT (52.7x coverage).
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What is Texas Instruments's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
|Texas Instruments Dividend Yield vs Market|
|Company (Texas Instruments)||3.0%|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.5%|
|Industry Average (Semiconductor)||2.0%|
|Analyst forecast in 3 Years (Texas Instruments)||3.0%|
Notable Dividend: TXN's dividend (2.96%) is higher than the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: TXN's dividend (2.96%) is low compared to the top 25% of dividend payers in the US market (4.53%).
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 (48.3%), TXN's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: At its current cash payout ratio (77%), TXN's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rich Templeton (63 yo)
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
|Rich Templeton's Compensation vs Texas Instruments Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$19m||US$1m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$19m||US$1m|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$19m||US$1m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$18m||US$1m|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$17m||US$1m|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$15m||US$1m|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$15m||US$1m|
Compensation vs Market: Rich's total compensation ($USD19.20M) is above average for companies of similar size in the US market ($USD13.00M).
Compensation vs Earnings: Rich's compensation has been consistent with company performance over the past year.
Experienced Management: TXN's management team is considered experienced (4.8 years average tenure).
Experienced Board: TXN's board of directors are considered experienced (8.2 years average tenure).
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
|01 Aug 22||SellUS$363,527||Mark Roberts||Individual||2,048||US$177.50|
|13 May 22||SellUS$1,005,067||Hagop Kozanian||Individual||5,904||US$170.23|
|13 May 22||SellUS$347,147||Mark Gary||Individual||2,043||US$169.92|
|09 Feb 22||SellUS$600,223||Hagop Kozanian||Individual||3,427||US$175.15|
|08 Feb 22||SellUS$350,280||Amichai Ron||Individual||2,037||US$171.96|
|04 Feb 22||SellUS$155,923||Mark Blinn||Individual||907||US$172.32|
|31 Jan 22||SellUS$5,938,659||Richard Templeton||Individual||33,469||US$178.45|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||408,743||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Texas Instruments Incorporated's employee growth, exchange listings and data sources
- Name: Texas Instruments Incorporated
- Ticker: TXN
- Exchange: NasdaqGS
- Founded: 1930
- Industry: Semiconductors
- Sector: Semiconductors
- Implied Market Cap: US$153.320b
- Shares outstanding: 913.71m
- Website: https://www.ti.com
Number of Employees
- Texas Instruments Incorporated
- 12500 TI Boulevard
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TXN||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jan 1968|
|TII||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|TXN *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|TII||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Jan 1968|
|TXN||SNSE (Santiago Stock Exchange)||Yes||Common Stock||CL||USD||Jan 1968|
|TXN-U||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jan 1968|
|0R2H||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|TXN||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jan 1968|
|TXN||BASE (Buenos Aires Stock Exchange)||CEDEAR EA 5 RE 1 USD1(USD)||AR||ARS||Sep 2000|
|TEXA34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 15 REPR 1 COM||BR||BRL||Aug 2015|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/05 00:00|
|End of Day Share Price||2022/10/05 00:00|
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.