NasdaqGS:TXN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.7%

TXN

1.3%

US Semiconductor

1.9%

US Market


1 Year Return

10.7%

TXN

46.5%

US Semiconductor

16.4%

US Market

Return vs Industry: TXN underperformed the US Semiconductor industry which returned 45.4% over the past year.

Return vs Market: TXN underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

TXNIndustryMarket
7 Day4.7%1.3%1.9%
30 Day2.3%3.3%4.5%
90 Day16.3%20.4%17.6%
1 Year14.0%10.7%49.3%46.5%18.9%16.4%
3 Year79.1%65.1%90.1%79.9%44.1%34.8%
5 Year201.3%163.7%220.4%188.9%75.3%56.3%

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

Valuation

Is Texas Instruments undervalued compared to its fair value and its price relative to the market?

24.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TXN ($133.56) is trading above our estimate of fair value ($69.16)

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 (24.7x) compared to the US Semiconductor industry average (36.5x).

PE vs Market: TXN is poor value based on its PE Ratio (24.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: TXN is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: TXN is overvalued based on its PB Ratio (16x) compared to the US Semiconductor industry average (3.5x).


Next Steps

Future Growth

How is Texas Instruments forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXN's forecast earnings growth (5.6% per year) is above the savings rate (2.2%).

Earnings vs Market: TXN's earnings (5.6% per year) are forecast to grow slower than the US market (23.1% per year).

High Growth Earnings: TXN's earnings are forecast to grow, but not significantly.

Revenue vs Market: TXN's revenue (5.8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: TXN's revenue (5.8% 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 (92.3%).


Next Steps

Past Performance

How has Texas Instruments performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TXN has high quality earnings.

Growing Profit Margin: TXN's current net profit margins (36.7%) are higher than last year (34.7%).


Past Earnings Growth Analysis

Earnings Trend: TXN's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: TXN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TXN had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the Semiconductor industry average (2.5%).


Return on Equity

High ROE: TXN's Return on Equity (66.1%) is considered outstanding.


Next Steps

Financial Health

How is Texas Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: TXN's short term assets ($8.5B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: TXN's short term assets ($8.5B) exceed its long term liabilities ($7.6B).


Debt to Equity History and Analysis

Debt Level: TXN's debt to equity ratio (84.6%) is considered high.

Reducing Debt: TXN's debt to equity ratio has increased from 47.7% to 84.6% over the past 5 years.

Debt Coverage: TXN's debt is well covered by operating cash flow (97.7%).

Interest Coverage: TXN's interest payments on its debt are well covered by EBIT (29.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Texas Instruments's current dividend yield, its reliability and sustainability?

2.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TXN's dividend (2.7%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: TXN's dividend (2.7%) is low compared to the top 25% of dividend payers in the US market (4.35%).


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 (64.2%), 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 (70.2% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Rich Templeton (61 yo)

2.08yrs

Tenure

US$18,633,807

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 ($USD18.63M) is above average for companies of similar size in the US market ($USD11.30M).

Compensation vs Earnings: Rich's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Templeton
Chairman2.08yrsUS$18.63m0.076%
$ 93.0m
Rafael Lizardi
Senior VP of Finance & Operations3.5yrsUS$4.86m0.0020%
$ 2.5m
Niels Anderskouv
Senior Vice President of Analog Power Products3.58yrsUS$5.90m0.00046%
$ 562.7k
Haviv Ilan
Senior Vice President of Analog Signal Chain5.83yrsUS$5.86mno data
Ahmad R. S. Bahai
Senior VP & CTO2.58yrsno data0.0026%
$ 3.2m
Ellen Barker
Senior VP of IT Services & Chief Information Officer6.25yrsno data0.0032%
$ 3.9m
Dave Pahl
Head of Investor Relations & VP6yrsno datano data
Cynthia Trochu
Senior VP5yrsno data0.0051%
$ 6.3m
Julie Van Haren
Senior Vice President of Communications & Investor Relations3.58yrsno data0.0023%
$ 2.8m
Bing Xie
Senior Vice President of Worldwide Sales & Applications5.58yrsno data0.0063%
$ 7.7m
Darla Whitaker
Senior Vice President of Human Resources14.58yrsno data0.0064%
$ 7.8m
Kyle Flessner
Senior Vice President of Technology & Manufacturing Group2.58yrsno data0.0058%
$ 7.1m

4.3yrs

Average Tenure

52yo

Average Age

Experienced Management: TXN's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Templeton
Chairman2.08yrsUS$18.63m0.076%
$ 93.0m
Carrie Cox
Independent Director15.92yrsUS$309.97k0.00034%
$ 415.9k
Janet Clark
Independent Director5.08yrsUS$314.94k0.00085%
$ 1.0m
Pamela Patsley
Independent Director16.58yrsUS$351.61k0.0034%
$ 4.1m
Ronald Kirk
Lead Independent Director0.33yrUS$314.99k0.00087%
$ 1.1m
Robert Sanchez
Independent Director9.42yrsUS$304.94k0.0011%
$ 1.4m
Todd Bluedorn
Independent Director3.42yrsUS$284.94kno data
Mark Blinn
Independent Director7.5yrsUS$323.28k0.0016%
$ 2.0m
Martin Craighead
Independent Director2.08yrsUS$312.44k0.0012%
$ 1.5m
Michael Hsu
Independent Director0.33yrno data0.000030%
$ 36.7k
Jean Hobby
Independent Director4.08yrsUS$284.94k0.00048%
$ 587.2k

5.1yrs

Average Tenure

60yo

Average Age

Experienced Board: TXN's board of directors are considered experienced (5.1 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 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$122.333b
  • Shares outstanding: 915.94m
  • Website: https://www.ti.com

Number of Employees


Location

  • Texas Instruments Incorporated
  • 12500 TI Boulevard
  • Dallas
  • Texas
  • 75243
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TXNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1968
TXNSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
TIIDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
TXN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
TIIXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
TXNSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
TXN-UETLX (Eurotlx)YesCommon StockITEURJan 1968
0R2HLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
TXNWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
TXNBASE (Buenos Aires Stock Exchange)CEDEAR EACH 5 REP 1 ORD USD1ARARSSep 2000
TEXA34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM USD1BRBRLAug 2015

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 23:56
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.