Texas Instruments Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductors
Texas Instruments Incorporated is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere.
Did you know?
A mega-cap stock valued at $256B.
Current Price
$282.23
+19.43%GoodMoat Value
$117.50
58.4% overvaluedProfile
Valuation (TTM)
Market Cap$256.44B
P/E51.28
EV$180.56B
P/B15.76
Shares Out908.62M
P/Sales14.50
Revenue$17.68B
EV/EBITDA32.19
Texas Instruments Inc (TXN) Stock Analysis
GoodMoat Analysis
Texas Instruments is a high-quality semiconductor company with a strong competitive moat, but it is currently priced at a significant premium to its estimated intrinsic value. The stock fails the valuation gate of the GoodMoat framework, indicating an unfavourable entry point for a value investor. Further investigation is warranted only if the price falls substantially to provide a margin of safety.
Read full analysis
Texas Instruments (TXN) is a leading designer and manufacturer of analog and embedded semiconductors, serving a diverse, long-lifecycle industrial and automotive customer base. Applying the GoodMoat framework, the company exhibits a durable competitive moat, likely scoring well on criteria such as switching costs (its chips are deeply embedded in customer designs), niche dominance in analog, and a founder-led culture of capital discipline. Its financial quality is strong, with a high ROE of 30.7%, a robust operating margin of 34.1%, and a reasonable debt-to-equity ratio of 0.86. However, the valuation assessment presents a major hurdle. At a P/E of 35.8 and a price of $196.77, the stock trades far above the GoodMoat Target of $108.37. This implies a negative margin of safety, placing it in the 'Unfavourable' band of the framework's valuation gate. Furthermore, the Free Cash Flow Yield of 1.5% is low, suggesting the price fully reflects the company's cash-generating ability. While TXN is a fundamentally strong business, it fails Step 2 of the Decision Framework. The extreme disconnect between price and estimated fair value, coupled with modest YoY revenue growth of 10.4%, makes the current valuation unattractive for a value investor seeking a margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$256.44B
Current Price$282.23
P/E Ratio51.28
Forward P/E—
PEG Ratio-13.54
EPS$5.45
Book Value$17.91
P/B Ratio15.76
TXN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -12.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 10.8B
Revenue
14.4B
FY19
14.5B
FY20
18.3B
FY21
20.0B
FY22
17.5B
FY23
15.6B
FY24
17.7B
FY25
Net Income
5.0B
FY19
5.6B
FY20
7.8B
FY21
8.7B
FY22
6.5B
FY23
4.8B
FY24
5.0B
FY25
TXN 52-Week Range
$152.33
$282.23
50-Day MA: $208.64200-Day MA: $189.72
Did you know?
Pays a 1.95% dividend yield.
Texas Instruments Inc (TXN) Financial Summary
Texas Instruments Inc (TXN) is a Technology company in the Semiconductors industry, listed on NASDAQ. The stock currently trades at $282.23 with a market capitalization of $256.44B.
Key valuation metrics include a P/E ratio of 51.28, price-to-book ratio of 15.76, and EPS of $5.45. The company reports a profit margin of 28.3% and return on equity of 30.7%.
TXN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $256.44B |
| P/E Ratio | 51.28 |
| EPS | $5.45 |
| P/B Ratio | 15.76 |
| P/S Ratio | 14.50 |
| EV/EBITDA | 32.19 |
| Dividend Yield | 1.95% |
| Profit Margin | 28.3% |
| Return on Equity | 30.7% |
| Debt/Equity | 0.86 |
TXN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $14.38B | $5.02B |
| FY20 | $14.46B | $5.59B |
| FY21 | $18.34B | $7.77B |
| FY22 | $20.03B | $8.75B |
| FY23 | $17.52B | $6.51B |
| FY24 | $15.64B | $4.80B |
| FY25 | $17.68B | $5.00B |
Texas Instruments Inc (TXN) Valuation
Based on GoodMoat's DCF model, Texas Instruments Inc has a fair value estimate of $117.50. At the current price of $282.23, the stock appears 140.2% overvalued relative to our intrinsic value estimate.
TXN Quality Indicators
Texas Instruments Inc maintains a profit margin of 28.3% and an operating margin of 34.1%. Return on equity stands at 30.7%. The current ratio is 4.35. Debt-to-equity ratio is 0.86.
About Texas Instruments Inc
Texas Instruments Incorporated is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere.
TXN Free Cash Flow
Texas Instruments Inc generated $2.60B in trailing twelve-month free cash flow, representing an FCF yield of 1.02%. This low FCF yield may reflect heavy reinvestment or growth spending.
TXN Shares Outstanding
Texas Instruments Inc has 0.91 billion shares outstanding at a share price of $282.23, giving it a market capitalization of $256.44B.
TXN Recent Insider Trades
Recent insider transactions at Texas Instruments Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Kozanian Hagop H (Sr. Vice President) | SELL | 6,843 | $1.55M |
| BAHAI AHMAD (Sr. Vice President) | SELL | 6,500 | $1.50M |
| Gary Mark (Sr. Vice President) | SELL | 10,248 | $2.26M |