Texas Instruments Stock Analysis (NASDAQ:TXN)

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$81.11 $1.25 (1.52%) TXN stock closing price Apr 26, 2017 (Closing)
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Texas Instruments
Updated on : Apr 26, 2017
previous close
TXN 81.1 (0%)
NASDAQ 6025.2 (0%)
Closing Price On: Apr 26, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Semiconductor-General
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.5%
Operating Profit
Operating Margin:
35.9%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.61B
Debt/Equity Ratio:
 0.35
Compared to the industry
Cash Flow
Operating cash flow:
$1.59B
Net Income:
$1.05B
Dividend Yield
TXN dividend yield:
2.02%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Long Term Growth
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TXN PS :
6.2
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
31.7%
Return on Equity:
34.3%
Free Cash Flow Margin:
43.2%
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Texas Instruments Analysis Video

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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.

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