About Texas Instruments Incorporated
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, the rest of Asia, Europe, the Middle East, Africa, Japan, and internationally. It operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, multiphase controllers and power stages, and lighting products. This segment also provides signal chain products that sense, condition, and measure real-world signals and convert them into data to be transferred or converted for further processing and control, such as amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers, processors, wireless connectivity, and radar products; and applications processors for specific computing activity. It also provides DLP products primarily for use in projecting high-definition images; calculators; and application-specific integrated circuits. Its products are used in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, calculators, and others. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.
Texas Instruments Incorporated (TXN) is a Technology company in the Semiconductors industry with a market capitalisation of $268.3B. The stock trades at 44.65x trailing earnings and yields 2.16%.
- Sector
- Technology
- Industry
- Semiconductors
- Market cap
- $268.3B
- P/E ratio
- 44.65
- Forward P/E
- 27.60
- EPS (TTM)
- $6.58
- Revenue (TTM)
- $19.5B
- Free cash flow
- $3.5B
- Profit margin
- 31.1%
- Dividend yield
- 2.16%
- Beta
- 1.31
- Shares outstanding
- 913.2M
Financial health: Strong8.2/10
8 strengths, 1 concern. Weakest points: payout ratio.
- Debt to equity: 0.86 (Watch, benchmark < 0.5) — Debt of 0.86x equity is moderate against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 3.5y (Watch, benchmark < 4 years) — Net debt of $9.2B is 3.5x annual free cash flow — about 4 years of cash flow to repay.
- Current ratio: 4.35 (Strong, benchmark > 1.5) — Short-term assets cover 4.35x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 35.2% (Strong, benchmark > 15%) — Earns 35.2% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 58.3% (Strong, benchmark > 40%) — Keeps 58.3% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 31.1% (Strong, benchmark > 10%) — Turns 31.1% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $2.6B (Strong, benchmark positive) — Generated $2.6B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: 22.8% (Strong, benchmark > 10%) — Revenue changed 22.8% year on year, comfortably past the > 10% mark.
- Earnings growth: 51.8% (Strong, benchmark > 10%) — Earnings changed 51.8% year on year, comfortably past the > 10% mark.
- PEG ratio: 0.97 (Strong, benchmark < 1) — At 0.97, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 85.4% (Concern, benchmark < 60%) — Pays out 85.4% of earnings as dividends — above the level usually considered sustainable.