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?
- Texas Instruments had a healthy average operating margin of 35.9% over the last 4 quarters.
- Net margins stood at a healthy 25.9% (average) for Texas Instruments in the Trailing Twelve Months.
- The company has an operating cash flow which is 1.5 times the net income. We see this as a positive signal.
- Texas Instruments generates a high return on invested capital of 31.7%.
- The LTM ROE of 34.3% for Texas Instruments is attractive.
- Texas Instruments has a healthy FCF (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 higher in comparison to the Semiconductor-General industry average of 2.6, making TXN stock expensive.