TXNNEUTRAL

TXN FCF Yield Analysis

1.0%

Higher than 27% of TECHNOLOGY sector peers

Updated 77h ago·SEC filings & market data

Key Takeaway

The current FCF Yield of 1.0% means that for every $100 of market value, the company generates about $1 of free cash flow — the cash left after operating expenses and capital spending.

Sector Performance

27th percentile

TXN

1.0%

Sector Median

1.3%

Sector Avg

2.3%

Prior Period

1.7%(Apr 2026)

↓ Declining

📊

Deep Analysis

The current FCF Yield of 1.0% means that for every $100 of market value, the company generates about $1 of free cash flow — the cash left after operating expenses and capital spending.

This trails the sector median of 1.3%, placing TXN at the 30th percentile among technology peers. Trend data is unavailable: the year-over-year change is N/A, and the quarter-over-quarter change is N/A, so no directional signal can be drawn from recent history. The combination of a below-median yield and missing trend data offers limited insight, but the lower cash return versus peers implies a relatively less attractive valuation from a cash-flow standpoint. That level does not contradict the overall NEUTRAL verdict — it is simply one factor consistent with holding a balanced view rather than a strong buy or sell case.

Frequently Asked Questions

What does the FCF Yield tell investors about TXN?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does TXN's FCF Yield compare to its sector?

TXN's FCF Yield of 1.0% compares to a TECHNOLOGY sector median of 1.3%, placing it in the 27th percentile.

Who are TXN's closest peers by FCF Yield?

The closest TECHNOLOGY peers by FCF Yield include: KLAC (1.3%), LRCX (1.2%), HPE (1.0%), MRVL (0.6%), CSCO (3.0%).

📚

Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.