TXNTXN
US • TECHNOLOGY
$279.58
P/E
42.28
PEG
0.82
FCF Yield
2.1%
Rev Growth YoY
+22.8% YoY
Gross Margin
58.3%
Health Score
8/10
D/E Ratio
0.86
Confidence
MEDIUM
Business Snapshot
Texas Instruments (TXN) is a global semiconductor company that designs and manufactures analog and embedded processing chips, serving industrial, automotive, and personal electronics markets. Its primary revenue-generating products include analog semiconductors, embedded processors, and integrated circuits. The company operates in the highly cyclical semiconductor industry and holds a leadership position in analog chips, where its extensive manufacturing footprint and broad product portfolio provide competitive advantages. As a large-cap company with a market capitalisation of $255.28B, Texas Instruments generates TTM revenue of $19.45B, demonstrating significant financial scale. A defining characteristic is its vertically integrated manufacturing model, owning multiple fabrication facilities that allow for greater control over production and cost efficiency compared to fabless competitors.
Financial Health
Gross margin stands at 58.3%, indicating strong pricing power and efficient production, while net margin of 31.1% reflects a highly profitable operating model. The conservative balance sheet features a manageable debt/equity ratio of 0.86x, far from distressed levels, and a robust current ratio of 4.35x, providing ample short-term liquidity...
Risk Assessment
- VALUATION — P/E of 42.28x is nearly double the sector average of 22x, implying high expectations for continued growth.
- 52-WEEK POSITION — The current price of $279.58 sits significantly below the 52-week high of $334.03 and below the midpoint of the range ($242.50).
- TECHNICALS — Price is currently below its 50-day moving average of $300.91 but above the 200-day MA of $224.05, signalling mixed near-term and longer-term momentum.
- INSIDER ACTIVITY — Over the last 90 days, insiders have recorded 5 sells versus 0 buys, a net selling pattern that may indicate caution from company leadership....
Gross margin stands at 58.3%, indicating strong pricing power and efficient production, while net margin of 31.1% reflects a highly profitable operating model. The conservative balance sheet features a manageable debt/equity ratio of 0.86x, far from distressed levels, and a robust current ratio of 4.35x, providing ample short-term liquidity. Free cash flow is strongly positive at $5.31B, supporting an FCF yield of 2.1%, which is modest but solid for a capital-intensive semiconductor manufacturer. Overall, Texas Instruments exhibits excellent financial health, with strong margins, low leverage, and consistent cash generation that supports capital returns through dividends and share buybacks without the risk of dilution.
- VALUATION — P/E of 42.28x is nearly double the sector average of 22x, implying high expectations for continued growth. - 52-WEEK POSITION — The current price of $279.58 sits significantly below the 52-week high of $334.03 and below the midpoint of the range ($242.50). - TECHNICALS — Price is currently below its 50-day moving average of $300.91 but above the 200-day MA of $224.05, signalling mixed near-term and longer-term momentum. - INSIDER ACTIVITY — Over the last 90 days, insiders have recorded 5 sells versus 0 buys, a net selling pattern that may indicate caution from company leadership.
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