Texas Instruments Stock Analysis (NASDAQ:TXN)
Texas Instruments Analysis Video
View Texas Instruments stock analysis video. This is our TXN analyst opinion covering the buy and sell arguments for TXN stock.
Texas Instruments Incorporated Stock Rating (3.8/5)
Our Texas Instruments stock opinion is based on fundamentals of the company. This Texas Instruments stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy TXN stock?
- The TTM operating margin was good at 35.9% for Texas Instruments.
- Net margins came in at average 25.9% for Texas Instruments over the last twelve months.
- The company has an operating cash flow which is 1.5 times the net income.
- Texas Instruments has an attractive ROIC (Return on Invested Capital) of 31.7%
- Texas Instruments has a good Return On Equity (ROE) of 34.3%.
- The company has a healthy free cash flow margin of 43.2%.
Should you sell TXN stock?
- The company saw an average annual sales decline of -0.5% in sales over the last 5 years.
- With a debt/equity ratio of 0.35, Texas Instruments is highly leveraged in comparison to Computer and Technology peers.
- The company is trading at a price to sales multiple of 6.1, which is overvalued in comparison to the Semiconductor-General industry average multiple of 2.6.