TXN

Texas Instruments

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Semiconductors

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/22/26

Business Summary

Texas Instruments designs and manufactures analog and embedded semiconductors that serve industrial, automotive, and electronics markets globally. The company generates cash by producing high-volume, essential chips that customers integrate deeply into long-life products, creating repeat demand and sticky design wins. Its moat stems from manufacturing scale, long product cycles, and cost advantages that support its 30.60% operating margin. Because its components are foundational rather than trend-driven, it benefits from broad secular electronics penetration while maintaining pricing power and capital discipline.

VALUATION

P/E

39.4

Market Cap ($M USD)

$195,503

Forward P/E

27.9

PEG

3.5

PRICE TO SALES

11.1

PRICE TO BOOK

12

EV / EBITDA

24.8

5-Year Average P/E

DIVIDEND

Yield

2.60%

Annual Payout

$5.68

Payout Ratio

100.60%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

6.80%

Financial Health & Profitability

Earnings Per Share

$5.47

Next Year EPS Growth Estimate

$7.70

Next Year Revenue Growth Estimate

10.30%

Return on Equity (ROE)

30.60%

Operating Margin

34.70%

Debt-to-Equity

0.9

Piotroski F-Score

6

Altman Z-Score

10

Return on Invested Capital (ROIC)

17.90%%

Current Ratio

4.4

Quick Ratio

Gainseekers Quantitative Analysis

Summary

Texas Instruments screens as financially secure but not obviously cheap. A Forward P/E of 27.9 against a PEG Forward of 3.5 signals the market is pricing in growth that is neither fast nor inexpensive, especially with a Price/Sales of 11.1 and Price/Book of 12. However, the Altman Z-Score of 10 and Current Ratio of 4.4 indicate fortress-level balance sheet stability, dramatically lowering insolvency risk. This is not a distressed value play; it is a premium-quality compounder trading at a valuation that demands execution, not optimism. The market is not mispricing bankruptcy risk — it is charging a full multiple for durability.

AI Exposure / Tech Reliance

As a Semiconductor company within the Technology sector, Texas Instruments sits at the foundational layer of AI and digital infrastructure buildouts. Semiconductors are mission-critical across industrial, automotive, and computing applications, making them essential regardless of specific AI platform winners. Its 30.60% Operating Margin suggests pricing power and efficiency that can cushion cyclical tech swings.

The Bull Case

A GARP or disciplined value investor would focus immediately on the 17.90% ROIC and 30.60% Operating Margin — this is a business that converts capital into high-quality earnings. A Piotroski F-Score of 6 signals fundamentally sound operations without obvious deterioration, while Return on Equity of 10.30% reinforces that capital is being employed profitably. The balance sheet strength is undeniable: Debt/Equity of 34.70% paired with a 4.4 Current Ratio and Altman Z-Score of 10 suggests ample liquidity and minimal solvency risk. Institutional Ownership at 220.72% indicates strong institutional participation, and a Dividend Per Share of 2.60% with a 5-Year Dividend Average growth of 10+ supports total return appeal. This is a high-margin, capital-efficient semiconductor platform with structural durability — exactly the type of business long-duration investors accumulate on weakness.

The Bear Case

Now the uncomfortable truth: the valuation is stretched relative to growth. A PEG Forward of 3.5 is expensive by any GARP discipline, and a P/E of 39.4 compresses future returns unless EPS acceleration materially surprises. Short % of Float at 6.80% is not extreme, but it reflects meaningful skepticism. With Price/Sales at 11.1 and Price/Book at 12, investors are paying premium multiples for a company with 10.30% ROE — that spread is not trivial. If semiconductor demand slows or margins compress even modestly, multiple contraction becomes the dominant risk factor.

Market Sentiment & Smart Money

Short Interest %

2.50%

Analyst Consensus

2.51

Average Analyst Price Target

$220.72

Institutional Ownership %

91.20%

1-Year Beta

1.11

Insider Buying % (6 Mo)

0.30%%

Distance to 52-Week High

92.80%%

Distance to 52-Week Low

153.40%%