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 has an attractive ROIC (Return on Invested Capital) of 31.7%
- The LTM ROE of 34.3% for Texas Instruments is attractive.
- The company has a healthy free cash flow margin of 43.2%.
Should you sell TXN stock?
- Revenue declined at a CAGR of -0.5% over the last 5 years.
- Texas Instruments has a debt/equity ratio of 0.35, which is worse than the average in the Computer and Technology sector.
- The company is trading at a price to sales multiple of 6.2, which is overvalued in comparison to the Semiconductor-General industry average multiple of 2.7.