TXN

Texas Instruments Incorporated

Fundamental data last updated:July 3, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

07/22/2026

Business Summary

Texas Instruments Incorporated (TI) specializes in the global design, production, and sale of semiconductors to electronics engineers and manufacturers. Its operations are structured into two core segments: Analog and Embedded Processing. The Analog division provides a comprehensive suite of power management products, such as battery-management solutions, various DC/DC and AC/DC switching regulators and controllers, power switches, linear regulators, voltage supervisors, references, and lighting components, all critical for managing diverse power needs. This segment also delivers signal chain products designed to sense, condition, and measure electrical signals, facilitating information transfer or conversion for further processing and control, encompassing items like amplifiers, data converters, interface devices, motor drives, clocks, and sensing technologies. The Embedded Processing segment develops microcontrollers, integral to a wide array of electronic equipment; digital signal processors (DSPs) for complex mathematical computations; and applications processors tailored for specific computing tasks. Products from this segment are utilized across numerous markets, including industrial applications, the automotive sector, personal electronics, communication systems, enterprise solutions, and calculators. Beyond these, TI also produces DLP® products, primarily used in projectors to generate high-definition images; a range of calculators; and custom application-specific integrated circuits (ASICs). The company distributes its semiconductor offerings through a direct sales force, its network of authorized distributors, and its official website. Established in 1930, Texas Instruments is headquartered in Dallas, Texas.

 


VALUATION

P/E

49.64

Market Cap ($M USD)

$266.73B

Forward P/E

24.10

PEG

0.23

PRICE TO SALES

14.47

PRICE TO BOOK

15.88

EV / EBITDA

31.43

5-Year Average P/E

Free Cash Flow Yield

1.40%

DCF Value

$52.86

Graham Number

$49.52

Price to FCF

71.68

EV to FCF

74.50

Earnings Yield

2.01%

FCF Yield

1.40%

DIVIDEND

Yield

1.92%

Annual Payout

$5.62

Payout Ratio

94.13%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.90

Next Year EPS Growth Estimate

$12.16

Next Year Revenue Growth Estimate

$3.07T

Return on Equity (ROE)

32.49%

FREE CASH FLOW

Operating Margin

35.29%

Debt-to-Equity

0.95

Piotroski F-Score

7

Altman Z-Score

12.94

Return on Invested Capital (ROIC)

20.79%

Current Ratio

4.46

Quick Ratio

2.94

Net Debt to EBITDA

1.19

Interest Coverage

11.70

Gross Profit margin

57.32%

FCF PER SHARE

$4.09

REVENUE PER SHARE

$20.28

Gainseekers Quantitative Analysis

Summary

The market seems to have priced Texas Instruments with an exuberance that defies its intrinsic value. With a DCF value far below its snapshot price, the stock appears extended. The Forward P/E of 24.51 suggests some optimism, yet the Earnings Yield of just 1.98% raises questions about its immediate income potential. However, the Altman Z-score of 12.54 indicates robust financial health, suggesting low bankruptcy risk. Overall, the valuation appears stretched, but the company’s financial stability remains solid.

AI Exposure / Tech Reliance

In the rapidly evolving semiconductor industry, Texas Instruments is well-positioned to capitalize on AI advancements. The company's focus on analog and embedded processing solutions aligns with the growing demand for AI-driven applications. This strategic positioning could enhance its resilience and adaptability in the tech landscape.

The Bull Case

For the discerning GARP investor, Texas Instruments offers compelling reasons to buy. A stellar ROIC of 20.79% underscores its capital efficiency, while a Piotroski F-Score of 7 signals strong financial health. Despite a modest FCF Yield of 1.37%, the company's operating margin of 35.29% highlights its pricing power. These metrics paint a picture of a company that knows how to generate and retain value.

The Bear Case

Despite its strengths, Texas Instruments faces significant valuation challenges. The Price/Book ratio of 16.15 and Price/Sales of 14.71 suggest the stock is priced for perfection. Additionally, the Price to FCF of 72.90 indicates poor cash flow relative to its market valuation. With the stock trading close to its 52-week high, it appears technically overextended, raising concerns about potential downside risk.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$281.56

Institutional Ownership %

1-Year Beta

1.31

Insider Buying % (6 Mo)

Distance to 52-Week High

13.97%

Distance to 52-Week Low

47.89%

EARNINGS SURPRISE %

23.53%

50-DAY SMA

$294.63

200-DAY SMA

$214.93

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.