NasdaqGS:TXN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Outstanding track record established dividend payer.


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


Market Performance


7 Day Return

-0.6%

TXN

-0.8%

US Semiconductor

-0.2%

US Market


1 Year Return

17.1%

TXN

9.4%

US Semiconductor

1.1%

US Market

TXN outperformed the Semiconductor industry which returned 10.2% over the past year.

TXN outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

TXNIndustryMarket
7 Day-0.6%-0.8%-0.2%
30 Day2.2%4.9%2.5%
90 Day14.7%12.0%1.6%
1 Year20.5%17.1%11.5%9.4%3.4%1.1%
3 Year101.9%86.8%83.0%72.2%45.2%35.8%
5 Year203.6%166.6%123.0%100.4%62.6%44.8%

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

Should You Be Worried About Insider Transactions At Texas Instruments Incorporated (NASDAQ:TXN)?

Valuation

Is Texas Instruments undervalued based on future cash flows and its price relative to the stock market?

23.09x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Texas Instruments's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Texas Instruments's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Texas Instruments is good value based on earnings compared to the US Semiconductor industry average.

Texas Instruments is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Texas Instruments is poor value based on expected growth next year.


Price Based on Value of Assets

Texas Instruments is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Texas Instruments expected to perform in the next 1 to 3 years based on estimates from 29 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Texas Instruments's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Texas Instruments's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Texas Instruments's revenue growth is positive but not above the United States of America market average.

Texas Instruments's earnings growth is positive but not above the United States of America market average.

Texas Instruments's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Texas Instruments is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Texas Instruments performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Texas Instruments's year on year earnings growth rate has been positive over the past 5 years.

Texas Instruments's 1-year earnings growth exceeds its 5-year average (21.3% vs 16%)

Texas Instruments's earnings growth has exceeded the US Semiconductor industry average in the past year (21.3% vs -6.2%).


Return on Equity

Texas Instruments made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Texas Instruments used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Texas Instruments has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Texas Instruments's financial position?


Financial Position Analysis

Texas Instruments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Texas Instruments's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Texas Instruments's level of debt (68.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (44.4% vs 68.4% today).

Debt is well covered by operating cash flow (123.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 40.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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

2.54%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Texas Instruments's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Texas Instruments's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of Texas Instruments's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Rich Templeton (60yo)

1.2yrs

Tenure

US$17,576,224

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

Rich's remuneration is higher than average for companies of similar size in United States of America.

Rich's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

The tenure for the Texas Instruments management team is about average.


Board Age and Tenure

4.2yrs

Average Tenure

59.5yo

Average Age

The tenure for the Texas Instruments board of directors is about average.


Insider Trading

Texas Instruments individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$793,06201 Aug 19
Cynthia Trochu
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares6,185
Max PriceUS$128.22
SellUS$3,344,94029 Jul 19
Bing Xie
EntityIndividual
Shares26,133
Max PriceUS$128.00
SellUS$2,169,02029 Jul 19
Darla Whitaker
EntityIndividual
Shares16,990
Max PriceUS$127.66
SellUS$1,271,10029 Jul 19
Ahmad R. S. Bahai
EntityIndividual
Role
Chief Technology Officer
Senior VP & CTO
Shares10,000
Max PriceUS$127.11
SellUS$6,548,06006 May 19
Niels Anderskouv
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Analog Power Products
Shares56,166
Max PriceUS$117.14
SellUS$1,487,41406 May 19
Haviv Ilan
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Analog Signal Chain
Shares12,659
Max PriceUS$117.50
SellUS$2,335,03201 May 19
Bing Xie
EntityIndividual
Shares20,000
Max PriceUS$116.75
SellUS$17,70319 Feb 19
Ahmad R. S. Bahai
EntityIndividual
Role
Chief Technology Officer
Senior VP & CTO
Shares165
Max PriceUS$107.29
SellUS$922,76214 Feb 19
Bing Xie
EntityIndividual
Shares8,693
Max PriceUS$106.15
SellUS$936,45504 Feb 19
Kyle Flessner
EntityIndividual
Shares9,270
Max PriceUS$101.02
SellUS$1,217,39204 Feb 19
Julie Van Haren
EntityIndividual
Role
Head of Corporate Communications
Senior Vice President of Communications & Investor Relations
Shares12,051
Max PriceUS$101.02
SellUS$2,341,03704 Feb 19
Niels Anderskouv
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Analog Power Products
Shares23,174
Max PriceUS$101.02
SellUS$145,20304 Feb 19
Ellen Barker
EntityIndividual
Role
Chief Information Officer
Senior VP of IT Services & Chief Information Officer
Shares1,435
Max PriceUS$101.19
SellUS$2,341,03704 Feb 19
Haviv Ilan
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Analog Signal Chain
Shares23,174
Max PriceUS$101.02
SellUS$3,371,13804 Feb 19
R. Delagi
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares33,371
Max PriceUS$101.02
SellUS$601,65804 Feb 19
Darla Whitaker
EntityIndividual
Shares5,960
Max PriceUS$100.95
SellUS$702,39204 Feb 19
Cynthia Trochu
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares6,953
Max PriceUS$101.02
SellUS$283,36101 Feb 19
Hagop Kozanian
EntityIndividual
Shares2,805
Max PriceUS$101.02
SellUS$2,206,51530 Jan 19
Bing Xie
EntityIndividual
Shares21,337
Max PriceUS$103.41
SellUS$1,042,25230 Jan 19
Ahmad R. S. Bahai
EntityIndividual
Role
Chief Technology Officer
Senior VP & CTO
Shares10,034
Max PriceUS$104.54
SellUS$1,512,27202 Nov 18
Kyle Flessner
EntityIndividual
Shares16,088
Max PriceUS$94.00
BuyUS$999,49629 Oct 18
Martin Craighead
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,900
Max PriceUS$91.70

Ownership Breakdown


Management Team

  • Rich Templeton (60yo)

    Chairman

    • Tenure: 1.2yrs
    • Compensation: US$17.58m
  • Ahmad R. S. Bahai (56yo)

    Senior VP & CTO

    • Tenure: 1.7yrs
  • Greg Delagi (56yo)

    Senior Vice President

    • Tenure: 0yrs
    • Compensation: US$5.61m
  • Ellen Barker (56yo)

    Senior VP of IT Services & Chief Information Officer

    • Tenure: 5.3yrs
  • Niels Anderskouv (49yo)

    Senior Vice President of Analog Power Products

    • Tenure: 2.7yrs
    • Compensation: US$5.89m
  • Dave Pahl

    Head of Investor Relations & VP

    • Tenure: 5.1yrs
  • Haviv Ilan (50yo)

    Senior Vice President of Analog Signal Chain

    • Tenure: 4.9yrs
    • Compensation: US$5.85m
  • Cynthia Trochu (55yo)

    Senior VP

    • Tenure: 4.1yrs
  • Julie Van Haren (50yo)

    Senior Vice President of Communications & Investor Relations

    • Tenure: 2.7yrs
  • Rafael Lizardi (46yo)

    Senior VP of Finance & Operations

    • Tenure: 2.6yrs
    • Compensation: US$4.19m

Board Members

  • Rich Templeton (60yo)

    Chairman

    • Tenure: 1.2yrs
    • Compensation: US$17.58m
  • Carrie Cox (61yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$300.28k
  • Janet Clark (64yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$314.93k
  • Pam Patsley (62yo)

    Lead Director

    • Tenure: 0.4yrs
    • Compensation: US$330.76k
  • Ron Kirk (65yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$304.39k
  • Robert Sanchez (54yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$301.60k
  • Todd Bluedorn (55yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$284.93k
  • Mark Blinn (57yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$336.60k
  • Martin Craighead (59yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$265.54k
  • Jean Hobby (58yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$304.93k

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$120.278b
  • Shares outstanding: 933.62m
  • 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
TXNSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
0R2HLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
TXNWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
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 Analysis2019/09/20 00:20
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.