Now trading at a price of $146.09, Texas Instruments has moved -0.3% so far today.
Texas Instruments returned losses of -11.0% last year, with its stock price reaching a high of $188.12 and a low of $139.48. Over the same period, the stock underperformed the S&P 500 index by -29.0%. As of April 2023, the company's 50-day average price was $156.73. Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. Based in Dallas, TX, the large-cap Technology company has 33,000 full time employees. Texas Instruments has offered a 3.4% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 54.23%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $15,784 | $14,383 | $14,461 | $18,344 | $20,028 | $18,821 |
| Gross Margins | 65% | 64% | 64% | 67% | 69% | 66% |
| Operating Margins | 43.0% | 40.0% | 42.0% | 49.0% | 51.0% | 47.0% |
| Net Margins | 35.0% | 35.0% | 39.0% | 42.0% | 44.0% | 41.0% |
| Net Income (MM) | $5,580 | $5,017 | $5,595 | $7,769 | $8,749 | $7,687 |
| Net Interest Expense (MM) | $125 | $175 | $313 | $184 | $214 | $283 |
| Depreciation & Amort. (MM) | $590 | $708 | $733 | $755 | $925 | $1,048 |
| Earnings Per Share | $5.59 | $5.24 | $5.97 | $8.26 | $9.41 | $8.33 |
| Diluted Shares (MM) | 990 | 952 | 933 | 936 | 926 | 894 |
| Free Cash Flow (MM) | $6,058 | $5,802 | $5,490 | $6,294 | $5,923 | $3,182 |
| Capital Expenditures (MM) | $1,131 | $847 | $649 | $2,462 | $2,797 | $4,185 |
| Net Current Assets (MM) | -$46 | -$350 | $75 | $2,342 | $1,391 | $515 |
| Long Term Debt (MM) | $4,319 | $5,303 | $6,248 | $7,241 | $8,235 | $10,920 |
| Net Debt / EBITDA | 0.36 | 0.52 | 0.55 | 0.32 | 0.51 | 0.79 |
Texas Instruments benefits from strong margins with a stable trend, low leverage, and weak revenue growth and increasing reinvestment in the business. The company's financial statements show wider gross margins than its peer group and positive EPS growth. Furthermore, Texas Instruments has irregular cash flows.
A Lower P/E Ratio Than Its Sector Average but Trades Above Its Graham Number:
Texas Instruments has a trailing twelve month P/E ratio of 20.3, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $7.83, the company has a forward P/E ratio of 20.0. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 6.9%. On this basis, the company's PEG ratio is 2.96, which suggests that it is overpriced. Furthermore, Texas Instruments is likely overvalued compared to the book value of its equity, since its P/B ratio of 7.98 is higher than the sector average of 6.23. The company's shares are currently trading 151.4% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for Texas Instruments:
The 27 analysts following Texas Instruments have set target prices ranging from $127.0 to $230.0 per share, for an average of $179.61 with a hold rating. As of April 2023, the company is trading -12.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Texas Instruments has a very low short interest because 1.8% of the company's shares are sold short. Institutions own 88.4% of the company's shares, and the insider ownership rate stands at 0.21%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $12,914,844,785.
