TXNTXN
US • TECHNOLOGY
$298.07
P/E
50.70
PEG
1.62
FCF Yield
1.5%
Rev Growth YoY
+18.6% YoY
Gross Margin
57.3%
Health Score
8/10
D/E Ratio
0.86
Confidence
MEDIUM
Business Snapshot
Texas Instruments is a leading designer and manufacturer of analog and embedded processing semiconductors, serving a broad range of customers across industrial, automotive, personal electronics, communications equipment, and enterprise systems markets. The company holds a strong competitive position as one of the world's largest analog semiconductor companies, benefiting from a diversified product portfolio and a long-standing reputation for reliability. As a large-cap company with a market capitalisation of $259.76B, it operates on a massive financial scale, generating $18.44B in trailing twelve-month (TTM) revenue. A defining characteristic of Texas Instruments is its company-owned manufacturing network, which provides greater control over production costs and supply chain resilience compared to fabless competitors.
Financial Health
Texas Instruments exhibits a strong gross margin of 57.3% and a robust TTM net margin of 29.1%, indicating significant pricing power and operational efficiency. The balance sheet is healthy, with a low debt-to-equity ratio of 0.86x, signalling moderate leverage, and a strong current ratio of 4.35x, which provides ample short-term liquidity coverage...
Risk Assessment
- VALUATION — P/E of 50.7x trades at a significant premium to the sector average of 22x, representing a high valuation hurdle for continued share price appreciation.
- EARNINGS QUALITY — The company beat analyst estimates on only 2 of the last 4 quarters, suggesting that earnings surprises are not consistently positive.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER ACTIVITY — Insiders were net sellers with 5 sells and 0 buys in the last 90 days, a bearish signal that could indicate management sees limited near-term upside.
- VALUATION DIVERGENCE — The Python DCF estimate of $106.71 implies a significant premium of the current $298.07 price to intrinsic value, flagged as a potentially overvalued condition.
- FCF / CASH BURN — Free cash flow yield of 1.5% is low relative to the current market capitalisation, indicating the company's cash generation is not creating a compelling value proposition at this price....
Texas Instruments exhibits a strong gross margin of 57.3% and a robust TTM net margin of 29.1%, indicating significant pricing power and operational efficiency. The balance sheet is healthy, with a low debt-to-equity ratio of 0.86x, signalling moderate leverage, and a strong current ratio of 4.35x, which provides ample short-term liquidity coverage. The company generates substantial free cash flow of $3.79B, though the free cash flow yield of 1.5% is relatively modest against its current market valuation. Overall, this financial profile supports a strong capacity for sustained shareholder returns through dividends and reinvestment in capital expenditures, with limited near-term risk of dilution.
- VALUATION — P/E of 50.7x trades at a significant premium to the sector average of 22x, representing a high valuation hurdle for continued share price appreciation. - EARNINGS QUALITY — The company beat analyst estimates on only 2 of the last 4 quarters, suggesting that earnings surprises are not consistently positive. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER ACTIVITY — Insiders were net sellers with 5 sells and 0 buys in the last 90 days, a bearish signal that could indicate management sees limited near-term upside. - VALUATION DIVERGENCE — The Python DCF estimate of $106.71 implies a significant premium of the current $298.07 price to intrinsic value, flagged as a potentially overvalued condition. - FCF / CASH BURN — Free cash flow yield of 1.5% is low relative to the current market capitalisation, indicating the company's cash generation is not creating a compelling value proposition at this price.
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