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Texas Instruments

Nasdaq:TXN
Snowflake Description

Outstanding track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TXN
Nasdaq
$104B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. The last earnings update was 49 days ago. More info.


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TXN Share Price and Events
7 Day Returns
-1.7%
NasdaqGS:TXN
-4.1%
US Semiconductor
0.1%
US Market
1 Year Returns
-2.3%
NasdaqGS:TXN
-11.1%
US Semiconductor
1.2%
US Market
TXN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Texas Instruments (TXN) -1.7% 4% 1.3% -2.3% 79% 132.7%
US Semiconductor -4.1% -3% -6.4% -11.1% 67.5% 78.8%
US Market 0.1% 0.6% 0.9% 1.2% 36.7% 37.9%
1 Year Return vs Industry and Market
  • TXN outperformed the Semiconductor industry which returned -11.1% over the past year.
  • TXN underperformed the Market in United States of America which returned 1.2% over the past year.
Price Volatility
TXN
Industry
5yr Volatility vs Market
Related Companies

TXN Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Texas Instruments to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Texas Instruments.

NasdaqGS:TXN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 30 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:TXN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.22
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.224 (1 + (1- 21%) (5.91%))
1.188
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.188 * 5.96%)
9.81%

Discounted Cash Flow Calculation for NasdaqGS:TXN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Texas Instruments is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:TXN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.81%)
2019 5,017.76 Analyst x14 4,569.48
2020 5,520.48 Analyst x13 4,578.14
2021 5,780.18 Analyst x4 4,365.26
2022 5,762.40 Est @ -0.31% 3,963.04
2023 5,797.20 Est @ 0.6% 3,630.78
2024 5,869.18 Est @ 1.24% 3,347.46
2025 5,968.26 Est @ 1.69% 3,099.86
2026 6,087.67 Est @ 2% 2,879.39
2027 6,222.78 Est @ 2.22% 2,680.35
2028 6,370.43 Est @ 2.37% 2,498.80
Present value of next 10 years cash flows $35,612.55
NasdaqGS:TXN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $6,370.43 × (1 + 2.73%) ÷ (9.81% – 2.73%)
$92,428.12
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $92,428.12 ÷ (1 + 9.81%)10
$36,254.92
NasdaqGS:TXN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $35,612.55 + $36,254.92
$71,867.46
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $71,867.46 / 938.21
$76.6
NasdaqGS:TXN Discount to Share Price
Calculation Result
Value per share (USD) From above. $76.60
Current discount Discount to share price of $111.04
= -1 x ($111.04 - $76.60) / $76.60
-45%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Texas Instruments is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Texas Instruments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Texas Instruments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:TXN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.62
NasdaqGS:TXN Share Price ** NasdaqGS (2019-06-18) in USD $111.04
United States of America Semiconductor Industry PE Ratio Median Figure of 69 Publicly-Listed Semiconductor Companies 22.43x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.63x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Texas Instruments.

NasdaqGS:TXN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:TXN Share Price ÷ EPS (both in USD)

= 111.04 ÷ 5.62

19.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Texas Instruments's expected growth come at a high price?
Raw Data
NasdaqGS:TXN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts
7.1%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 63 Publicly-Listed Semiconductor Companies 0.96x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:TXN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.75x ÷ 7.1%

2.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Texas Instruments is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Texas Instruments's assets?
Raw Data
NasdaqGS:TXN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $9.07
NasdaqGS:TXN Share Price * NasdaqGS (2019-06-18) in USD $111.04
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.47x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:TXN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:TXN Share Price ÷ Book Value per Share (both in USD)

= 111.04 ÷ 9.07

12.24x

* Primary Listing of Texas Instruments.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Texas Instruments is overvalued based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess Texas Instruments's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Texas Instruments has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TXN Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Texas Instruments expected to grow at an attractive rate?
  • Texas Instruments's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Texas Instruments's earnings growth is positive but not above the United States of America market average.
  • Texas Instruments's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:TXN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:TXN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts 7.1%
NasdaqGS:TXN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts 4.8%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 18%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:TXN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:TXN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 16,359 7,076 5,753 8
2020-12-31 15,614 6,709 5,413 30
2019-12-31 14,767 6,060 4,945 30
NasdaqGS:TXN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 15,589 7,184 5,391
2018-12-31 15,784 7,189 5,537
2018-09-30 15,817 6,973 4,649
2018-06-30 15,672 6,589 4,363
2018-03-31 15,348 5,680 4,016
2017-12-31 14,961 5,363 3,648
2017-09-30 14,625 4,821 4,339
2017-06-30 14,184 4,564 4,072
2017-03-31 13,764 4,756 3,835
2016-12-31 13,370 4,614 3,550
2016-09-30 13,145 4,786 3,341
2016-06-30 12,899 4,730 3,121

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Texas Instruments's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
  • Texas Instruments's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:TXN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below

All data from Texas Instruments Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TXN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 6.21 6.59 5.78 7.00
2020-12-31 5.77 6.68 5.35 31.00
2019-12-31 5.19 5.60 4.89 31.00
NasdaqGS:TXN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.62
2018-12-31 5.71
2018-09-30 4.75
2018-06-30 4.44
2018-03-31 4.07
2017-12-31 3.68
2017-09-30 4.36
2017-06-30 4.08
2017-03-31 3.83
2016-12-31 3.54
2016-09-30 3.32
2016-06-30 3.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Texas Instruments is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Texas Instruments's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Texas Instruments has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TXN Past Performance

  How has Texas Instruments performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Texas Instruments's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (34.2% vs 16.2%)
  • Texas Instruments's earnings growth has exceeded the US Semiconductor industry average in the past year (34.2% vs 22.6%).
Earnings and Revenue History
Texas Instruments's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Texas Instruments Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TXN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 15,589.00 5,391.00 1,759.00 1,563.00
2018-12-31 15,784.00 5,537.00 1,776.00 1,559.00
2018-09-30 15,817.00 4,649.00 1,725.00 1,545.00
2018-06-30 15,672.00 4,363.00 1,756.00 1,530.00
2018-03-31 15,348.00 4,016.00 1,806.00 1,524.00
2017-12-31 14,961.00 3,648.00 1,818.00 1,508.00
2017-09-30 14,625.00 4,339.00 1,801.00 1,462.00
2017-06-30 14,184.00 4,072.00 1,776.00 1,440.00
2017-03-31 13,764.00 3,835.00 1,813.00 1,403.00
2016-12-31 13,370.00 3,550.00 1,859.00 1,356.00
2016-09-30 13,145.00 3,341.00 1,742.00 1,322.00
2016-06-30 12,899.00 3,121.00 1,734.00 1,285.00
2016-03-31 12,858.00 2,998.00 1,750.00 1,264.00
2015-12-31 13,000.00 2,943.00 1,776.00 1,267.00
2015-09-30 13,080.00 2,931.00 1,772.00 1,285.00
2015-06-30 13,152.00 2,958.00 1,801.00 1,301.00
2015-03-31 13,212.00 2,944.00 1,803.00 1,330.00
2014-12-31 13,045.00 2,777.00 1,843.00 1,358.00
2014-09-30 12,804.00 2,468.00 1,875.00 1,393.00
2014-06-30 12,548.00 2,273.00 1,878.00 1,429.00
2014-03-31 12,303.00 2,250.00 1,878.00 1,469.00
2013-12-31 12,205.00 2,125.00 1,858.00 1,522.00
2013-09-30 12,156.00 1,882.00 1,829.00 1,601.00
2013-06-30 12,301.00 2,033.00 1,817.00 1,696.00
2013-03-31 12,589.00 1,822.00 1,801.00 1,787.00
2012-12-31 12,825.00 1,728.00 1,804.00 1,877.00
2012-09-30 13,266.00 1,761.00 1,816.00 1,926.00
2012-06-30 13,342.00 1,583.00 1,750.00 1,858.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Texas Instruments made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Texas Instruments used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • Texas Instruments has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Texas Instruments's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Texas Instruments has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TXN Health

 How is Texas Instruments's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Texas Instruments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Texas Instruments's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Texas Instruments Company Filings, last reported 2 months ago.

NasdaqGS:TXN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 8,519.00 6,153.00 4,086.00
2018-12-31 8,994.00 5,068.00 4,233.00
2018-09-30 10,516.00 5,067.00 5,113.00
2018-06-30 10,634.00 5,066.00 5,130.00
2018-03-31 10,642.00 4,078.00 4,079.00
2017-12-31 10,337.00 4,077.00 4,469.00
2017-09-30 10,988.00 3,583.00 3,444.00
2017-06-30 10,708.00 3,583.00 2,984.00
2017-03-31 10,639.00 3,358.00 3,049.00
2016-12-31 10,473.00 3,609.00 3,490.00
2016-09-30 10,286.00 3,611.00 3,137.00
2016-06-30 9,962.00 3,612.00 2,539.00
2016-03-31 9,782.00 4,118.00 2,800.00
2015-12-31 9,946.00 4,120.00 3,218.00
2015-09-30 9,970.00 4,132.00 2,735.00
2015-06-30 10,205.00 4,884.00 3,306.00
2015-03-31 10,369.00 4,638.00 3,304.00
2014-12-31 10,390.00 4,631.00 3,541.00
2014-09-30 10,471.00 4,645.00 3,186.00
2014-06-30 10,466.00 4,648.00 2,804.00
2014-03-31 10,620.00 5,652.00 4,032.00
2013-12-31 10,807.00 5,158.00 3,829.00
2013-09-30 11,051.00 5,161.00 3,593.00
2013-06-30 11,068.00 5,165.00 3,244.00
2013-03-31 10,952.00 5,683.00 3,862.00
2012-12-31 10,961.00 5,686.00 3,965.00
2012-09-30 11,403.00 5,690.00 3,661.00
2012-06-30 11,158.00 4,703.00 2,333.00
  • Texas Instruments's level of debt (68.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.1% vs 68.2% today).
  • Debt is well covered by operating cash flow (123.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 46.1x coverage).
X
Financial health checks
We assess Texas Instruments's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Texas Instruments has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TXN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.77%
Current annual income from Texas Instruments dividends. Estimated to be 2.95% next year.
If you bought $2,000 of Texas Instruments shares you are expected to receive $55 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Texas Instruments's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Texas Instruments's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:TXN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:TXN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 3.56 7.00
2020-12-31 3.32 15.00
2019-12-31 3.12 16.00
NasdaqGS:TXN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 3.080 2.795
2019-01-17 3.080 2.862
2018-09-20 3.080 3.165
2018-07-19 2.480 2.234
2018-04-26 2.480 2.232
2018-01-18 2.480 2.341
2017-09-21 2.480 2.527
2017-07-19 2.000 2.437
2017-04-19 2.000 2.496
2017-01-19 2.000 2.552
2016-11-03 2.000 2.753
2016-10-26 2.000 2.856
2016-07-21 1.520 2.189
2016-04-20 1.520 2.513
2016-01-21 1.520 2.789
2015-09-17 1.520 2.824
2015-07-16 1.360 2.791
2015-04-16 1.360 2.523
2015-01-15 1.360 2.396
2014-09-19 1.360 2.699
2014-07-17 1.200 2.520
2014-04-16 1.200 2.549
2014-01-16 1.200 2.687
2013-09-19 1.200 2.868
2013-07-18 1.120 2.856
2013-02-21 1.120 3.149
2013-01-17 0.840 2.519
2012-09-20 0.840 2.846
2012-07-19 0.680 2.372
2012-04-18 0.680 2.346
2012-01-19 0.680 2.062
2011-09-15 0.680 2.301
2011-07-21 0.520 1.911
2011-04-20 0.520 1.559
2011-01-20 0.520 1.492
2010-09-16 0.520 1.708
2010-07-15 0.480 1.950
2010-04-14 0.480 1.917
2010-01-21 0.480 1.973
2009-09-17 0.480 1.951
2009-07-17 0.440 1.820

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Texas Instruments's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Texas Instruments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Texas Instruments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Texas Instruments has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TXN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rich Templeton
COMPENSATION $17,576,224
AGE 59
TENURE AS CEO 0.9 years
CEO Bio

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 Semiconductor Group's sales and marketing organization and served as its Chief Operating Officer from 2000 to April 2004, Executive Vice President and President of Semiconductor division since 1996 and Senior Vice President since 1994. Mr. Templeton served as the President of Texas Instruments Inc. from May 2004 to April 2013. He served as a Texas Instruments Inc.'s Vice President since 1991 and was promoted to manager of worldwide application specific products in 1993, with responsibility for a wide range of products including digital signal processors. He has been the Chairman of Texas Instruments Inc. since April 17, 2008. As a 37-year veteran of the semiconductor industry, serving the last 22 years at a senior level at the Texas Instruments Inc. He served as the Chairman of Semiconductor Industry Association. He has been an Executive Director of Texas Instruments Inc. since July 2003. He serves as a Director of Semiconductor Industry Association. He serves as a Director of Catalyst, Inc. He holds a Bachelors Degree in Electrical Engineering from Union College.

CEO Compensation
  • Rich's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Rich's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Texas Instruments management team in years:

2.4
Average Tenure
54
Average Age
  • The tenure for the Texas Instruments management team is about average.
Management Team

Rich Templeton

TITLE
Chairman
COMPENSATION
$18M
AGE
59
TENURE
0.9 yrs

Rafael Lizardi

TITLE
Senior VP of Finance & Operations
COMPENSATION
$4M
AGE
45
TENURE
2.3 yrs

Greg Delagi

TITLE
Senior Vice President of Embedded Processing
COMPENSATION
$6M
AGE
55

Niels Anderskouv

TITLE
Senior Vice President of Analog Power Products
COMPENSATION
$6M
AGE
48
TENURE
2.4 yrs

Haviv Ilan

TITLE
Senior Vice President of Analog Signal Chain
COMPENSATION
$6M
AGE
49
TENURE
4.7 yrs

Ahmad R. S. Bahai

TITLE
Senior VP & CTO
AGE
55
TENURE
1.4 yrs

Ellen Barker

TITLE
Senior VP of IT Services & Chief Information Officer
AGE
55
TENURE
5.1 yrs

Dave Pahl

TITLE
Head of Investor Relations & VP
TENURE
4.8 yrs

Cynthia Trochu

TITLE
Senior VP
AGE
54
TENURE
3.8 yrs

Julie Van Haren

TITLE
Senior Vice President of Communications & Investor Relations
AGE
49
TENURE
2.4 yrs
Board of Directors Tenure

Average tenure and age of the Texas Instruments board of directors in years:

3.9
Average Tenure
58.5
Average Age
  • The tenure for the Texas Instruments board of directors is about average.
Board of Directors

Rich Templeton

TITLE
Chairman
COMPENSATION
$18M
AGE
59
TENURE
11.2 yrs

Pam Patsley

TITLE
Lead Director
COMPENSATION
$331K
AGE
61
TENURE
0.2 yrs

Mark Blinn

TITLE
Independent Director
COMPENSATION
$337K
AGE
56
TENURE
6.3 yrs

Ron Kirk

TITLE
Independent Director
COMPENSATION
$304K
AGE
64
TENURE
5.8 yrs

Robert Sanchez

TITLE
Independent Director
COMPENSATION
$302K
AGE
53

Carrie Cox

TITLE
Independent Director
COMPENSATION
$300K
AGE
60
TENURE
14.8 yrs

Janet Clark

TITLE
Independent Director
COMPENSATION
$315K
AGE
63
TENURE
3.9 yrs

Jean Hobby

TITLE
Independent Director
COMPENSATION
$305K
AGE
57
TENURE
2.9 yrs

Todd Bluedorn

TITLE
Independent Director
COMPENSATION
$285K
AGE
54
TENURE
2.3 yrs

Martin Craighead

TITLE
Independent Director
COMPENSATION
$266K
AGE
58
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • Texas Instruments insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. May 19 Sell Haviv Ilan Individual 02. May 19 02. May 19 -12,659 $117.50 $-1,487,414
06. May 19 Sell Niels Anderskouv Individual 29. Apr 19 29. Apr 19 -56,166 $117.14 $-6,548,060
01. May 19 Sell Bing Xie Individual 29. Apr 19 29. Apr 19 -20,000 $116.75 $-2,335,032
19. Feb 19 Sell Ahmad R. S. Bahai Individual 15. Feb 19 15. Feb 19 -165 $107.29 $-17,703
14. Feb 19 Sell Bing Xie Individual 12. Feb 19 12. Feb 19 -8,693 $106.15 $-922,762
04. Feb 19 Sell Kyle Flessner Individual 31. Jan 19 31. Jan 19 -9,270 $101.02 $-936,455
04. Feb 19 Sell Julie Van Haren Individual 31. Jan 19 31. Jan 19 -12,051 $101.02 $-1,217,392
04. Feb 19 Sell Niels Anderskouv Individual 31. Jan 19 31. Jan 19 -23,174 $101.02 $-2,341,037
04. Feb 19 Sell Ellen Barker Individual 31. Jan 19 31. Jan 19 -1,435 $101.19 $-145,203
04. Feb 19 Sell Haviv Ilan Individual 31. Jan 19 31. Jan 19 -23,174 $101.02 $-2,341,037
04. Feb 19 Sell R. Delagi Individual 31. Jan 19 31. Jan 19 -33,371 $101.02 $-3,371,138
04. Feb 19 Sell Darla Whitaker Individual 31. Jan 19 31. Jan 19 -5,960 $100.95 $-601,658
04. Feb 19 Sell Cynthia Trochu Individual 31. Jan 19 31. Jan 19 -6,953 $101.02 $-702,392
01. Feb 19 Sell Hagop Kozanian Individual 31. Jan 19 31. Jan 19 -2,805 $101.02 $-283,361
30. Jan 19 Sell Bing Xie Individual 25. Jan 19 25. Jan 19 -21,337 $103.41 $-2,206,515
30. Jan 19 Sell Ahmad R. S. Bahai Individual 25. Jan 19 25. Jan 19 -10,034 $104.54 $-1,042,252
02. Nov 18 Sell Kyle Flessner Individual 31. Oct 18 31. Oct 18 -16,088 $94.00 $-1,512,272
29. Oct 18 Buy Martin Craighead Individual 25. Oct 18 25. Oct 18 10,900 $91.70 $999,496
X
Management checks
We assess Texas Instruments's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Texas Instruments has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TXN News

Simply Wall St News

Why Texas Instruments Incorporated (NASDAQ:TXN) Could Be Worth Watching

Texas Instruments Incorporated (NASDAQ:TXN) saw significant share price movement during recent months on the NASDAQGS, rising to highs of $118.43 and falling to the lows of $103.21. … Let’s take a look at Texas Instruments’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … Given that Texas Instruments’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future.

Simply Wall St -

Should You Like Texas Instruments Incorporated’s (NASDAQ:TXN) High Return On Capital Employed?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Texas Instruments: 0.42 = US$6.5b ÷ (US$17b - US$2.2b) (Based on the trailing twelve months to March 2019.) Therefore, Texas Instruments has an ROCE of 42%. … Texas Instruments's Current Liabilities And Their Impact On Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … Our Take On Texas Instruments's ROCE Low current liabilities and high ROCE is a good combination, making Texas Instruments look quite interesting.

Simply Wall St -

With EPS Growth And More, Texas Instruments (NASDAQ:TXN) Is Interesting

But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' In contrast to all that, I prefer to spend time on companies like Texas Instruments (NASDAQ:TXN), which has not only revenues, but also profits. … See our latest analysis for Texas Instruments How Quickly Is Texas Instruments Increasing Earnings Per Share? … You can't deny that Texas Instruments has grown its earnings per share at a very impressive rate.

Simply Wall St -

Why Texas Instruments Incorporated (NASDAQ:TXN) Looks Like A Quality Company

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Texas Instruments: 64% = US$5.4b ÷ US$8.5b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Texas Instruments's Debt And Its 64% Return On Equity While Texas Instruments does have some debt, with debt to equity of just 0.72, we wouldn't say debt is excessive. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Texas Instruments Incorporated (NASDAQ:TXN): A Fundamentally Attractive Investment

Help shape the future of investing tools and you could win a $250 gift card! … Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Texas Instruments Incorporated (NASDAQ:TXN) due to its excellent fundamentals in more than one area.

Simply Wall St -

Interested In Texas Instruments Incorporated (NASDAQ:TXN)’s Upcoming US$0.77 Dividend? You Have 2 Days Left

Texas Instruments Incorporated (NASDAQ:TXN) will be distributing its dividend of US$0.77 per share on the 20 May 2019, and will start trading ex-dividend in 2 days time on the 03 May 2019. … 5 questions I ask before picking a dividend stock? … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

Despite Its High P/E Ratio, Is Texas Instruments Incorporated (NASDAQ:TXN) Still Undervalued?

To keep it practical, we'll show how Texas Instruments Incorporated's (NASDAQ:TXN) P/E ratio could help you assess the value on offer. … Looking at earnings over the last twelve months, Texas Instruments has a P/E ratio of 20.39. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Should You Know About Texas Instruments Incorporated's (NASDAQ:TXN) Future?

Based on Texas Instruments Incorporated's (NASDAQ:TXN) earnings update in December 2018,. … analyst consensus outlook appear cautiously subdued, … the higher past 5-year average growth rate of 16%

Simply Wall St -

Need To Know: Texas Instruments Incorporated (NASDAQ:TXN) Insiders Have Been Selling Shares

So we'll take a look at whether insiders have been buying or selling shares in Texas Instruments Incorporated (NASDAQ:TXN). … That means that an insider was selling shares at slightly below the current price (US$109). … Over the last year we saw more insider selling of Texas Instruments shares, than buying.

Simply Wall St -

Do Institutions Own Texas Instruments Incorporated (NASDAQ:TXN) Shares?

The big shareholder groups in Texas Instruments Incorporated (NASDAQ:TXN) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … We also tend to see lower insider ownership in companies that were previously publicly owned.

Simply Wall St -

TXN Company Info

Description

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, portable components, power supply controls, point-of-load products, switches and interfaces, integrated protection devices, high-voltage products, and mobile lighting and display products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control for use in amplifier, data converter, interface product, motor drive, clock, and sensing product end-markets; and integrated analog and standard products, which are primarily for sale into personal electronics, industrial, and automotive markets. The Embedded Processing segment offers connected microcontrollers, such as microcontrollers, microcontrollers with integrated wireless capabilities, and stand-alone wireless connectivity solutions that are used in electronic equipment to sense, connect, log, and transfer data; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, principally industrial and automotive. The company also provides DLP products, primarily for use in projectors to create high-definition images; calculators; and application-specific integrated circuits. Texas Instruments Incorporated markets and sells its semiconductor products through direct sales and distributors, as well as online. The company was founded in 1930 and is headquartered in Dallas, Texas.

Details
Name: Texas Instruments Incorporated
TXN
Exchange: NasdaqGS
Founded: 1930
$104,178,413,227
938,206,171
Website: http://www.ti.com
Address: Texas Instruments Incorporated
12500 TI Boulevard,
Dallas,
Texas, 75243,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS TXN Common Stock Nasdaq Global Select US USD 02. Jan 1968
DB TII Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0R2H Common Stock London Stock Exchange GB USD 02. Jan 1968
SWX TXN Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
WBAG TXN Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE TXN Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BMV TXN * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BASE TXN CEDEAR EACH 5 REP 1 ORD USD1 Buenos Aires Stock Exchange AR ARS 13. Sep 2000
BOVESPA TEXA34 EACH BDR REPR 1 COM USD1 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2015
Number of employees
Current staff
Staff numbers
29,888
Texas Instruments employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 23:45
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.