TXN Texas Instruments Incorporated - Fundamental Analysis
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TXN Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Semiconductors
Current Price
Live
$191.58
Analyst Target
$191.34
-0.1%
Downside
52W High
$221.69
52W Low
$139.95
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$174.17B
P/E
34.96
ROE
29.8%
Profit margin
29.2%
Debt/Equity
0.84
Dividend yield
3.0%
AI Analysis
AI-powered fundamental assessment
Confidence
72%
TXN's deterministic health score is concerning with a Piotroski F-Score of 4/9, indicating borderline financial stability. Despite strong profitability metrics and a solid dividend yield, the stock trades at a significant premium to both Graham Number ($47.49) and intrinsic value ($44.11), currently priced at $191.58. Earnings growth has slowed to just 0.7% YoY despite robust revenue growth, and insider selling adds caution. However, consistent earnings beats, strong margins, and a healthy balance sheet with low leverage provide counterbalancing strengths.
Key Strengths
Exceptional profitability with ROE of 29.76%, ROA of 10.70%, and gross margin of 57.48%
Strong liquidity position: Current Ratio of 4.45 and Quick Ratio of 2.81
Low Debt/Equity of 0.84, below sector average of 0.80
Consistent earnings beat record: 3 out of last 4 quarters, with long-term history of positive surprises
Attractive dividend yield of 3.00%, above sector peers
Key Risks
Piotroski F-Score of 4/9 suggests weak financial health, particularly driven by low earnings growth and high payout ratio
Extremely high valuation: P/E of 34.96 vs Graham-based intrinsic value of $44.11; current price is 334% above fair value
Earnings growth decoupled from revenue growth: 14.2% revenue growth vs only 0.7% YoY earnings growth
Unsustainable dividend policy: 99.09% payout ratio raises concerns about future dividend security
Insider selling trend: 3 sell transactions in last 6 months, no buys, signaling bearish sentiment from insiders
AI Fair Value Estimate
Based on comprehensive analysis
$46.0
-76.0% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
50
Moderate
30
45
70
50
55
AI Verdict
Neutral with upside risk if earnings growth recovers
Key drivers: High profitability and margin strength, Rich valuation multiples, Deteriorating earnings growth, Strong dividend yield but high payout risk, Insider selling pressure
Confidence
75%
Value
30/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 34.96 below sector average of 110.77
Watchpoints
- Current price ($191.58) significantly above Graham Number ($47.49)
- Intrinsic value estimate of $44.11 implies 77% overvaluation
- High Price/Book (10.47) and Price/Sales (10.09) ratios
Future
45/100
Ref Growth rates
Positives
- Revenue growth of 14.20% YoY is strong
- Forward P/E of 31.25 suggests some earnings recovery expected
Watchpoints
- Earnings growth of only 0.7% YoY despite revenue growth
- Q/Q earnings growth of 0.10% indicates stagnation
Past
70/100
Ref Historical trends
Positives
- Long history of beating earnings estimates: 22 out of 25 quarters positive surprises
- Average earnings surprise of 8.59% over last 4 quarters
- Strong historical EPS growth trend pre-2024
Watchpoints
- Recent earnings deceleration: from +19% YoY in 2022 to +0.7% now
Health
50/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current Ratio of 4.45 and Quick Ratio of 2.81 indicate strong short-term liquidity
- Debt/Equity of 0.84 is manageable and below sector average
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health
- Altman Z-Score not available, limiting distress risk assessment
Dividend
55/100
Ref Yield, Payout
Positives
- Dividend yield of 3.00% is attractive in current rate environment
- Long-standing dividend payer with consistent increases
Watchpoints
- Payout ratio of 99.09% is dangerously high and unsustainable
- Dividend Strength score of 20/100 reflects risk
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$191.58
Analyst Target
$191.34
Upside/Downside
-0.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for TXN and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
TXN
Texas Instruments Incorporated
Primary
|
+26.8% | +19.6% | +5.6% | -10.1% | +9.8% | +0.7% |
|
ACN
Accenture plc
Peer
|
+19.4% | +6.6% | -21.9% | -0.7% | +4.1% | -1.8% |
|
QCOM
QUALCOMM Incorporated
Peer
|
+8.4% | +41.9% | +1.0% | +4.1% | -7.5% | -10.3% |
|
ANET
Arista Networks, Inc.
Peer
|
+609.0% | +347.9% | +5.6% | +19.3% | +4.3% | +5.0% |
|
APH
Amphenol Corporation
Peer
|
+376.2% | +290.2% | +93.7% | +44.2% | +9.5% | -2.2% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
34.96
Forward P/E
31.25
PEG Ratio
N/A
P/B Ratio
10.47
P/S Ratio
10.09
EV/Revenue
10.6
EV/EBITDA
23.41
Market Cap
$174.17B
Profitability
Profit margins and return metrics
Profit Margin
29.21%
Operating Margin
36.74%
Gross Margin
57.48%
ROE
29.76%
ROA
10.7%
Growth
Revenue and earnings growth rates
Revenue Growth
+14.2%
Earnings Growth
+0.7%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+0.1%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.84
Moderate
Current Ratio
4.45
Strong
Quick Ratio
2.81
Excellent
Cash/Share
$5.71
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-27
$N/A
2025-10-21
$1.57
+5.8% surprise
2025-07-22
$1.41
+3.2% surprise
2025-04-23
$1.28
+16.8% surprise
Technology Sector Comparison
Comparing TXN against 149 companies in the Technology sector
(10 bullish, 66 neutral, 73 bearish)
P/E Ratio
34.96
This Stock
vs
90.85
Sector Avg
-61.5%
(Discount)
Return on Equity (ROE)
29.76%
This Stock
vs
-8.28%
Sector Avg
-459.3%
(Below Avg)
Profit Margin
29.21%
This Stock
vs
-7.76%
Sector Avg
-476.5%
(Weaker)
Debt to Equity
0.84
This Stock
vs
0.76
Sector Avg
+10.5%
(Higher)
Revenue Growth
14.2%
This Stock
vs
56.96%
Sector Avg
-75.1%
(Slower)
Current Ratio
4.45
This Stock
vs
3.31
Sector Avg
+34.6%
(Stronger)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
TXN
Texas Instruments Incorporated
|
NEUTRAL | $174.17B | 34.96 | 29.8% | 29.2% | $191.58 | |
|
ACN
Accenture plc
|
NEUTRAL | $174.3B | 23.58 | 25.0% | 10.8% | $281.07 | |
|
QCOM
QUALCOMM Incorporated
|
NEUTRAL | $172.01B | 31.88 | 23.3% | 12.5% | $159.42 | |
|
ANET
Arista Networks, Inc.
|
NEUTRAL | $171.69B | 52.64 | 31.7% | 39.7% | $136.34 | |
|
APH
Amphenol Corporation
|
NEUTRAL | $184.82B | 50.84 | 34.8% | 18.2% | $150.99 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-26 | KNECHT JULIE C. | Officer | Gift | 247 | - |
| 2025-11-26 | KNECHT JULIE C. | Officer | Gift | 225 | - |
| 2025-11-24 | KIRK RONALD | Director | Option Exercise | 9,990 | $528,771 |
| 2025-11-24 | KIRK RONALD | Director | Sale | 9,990 | $1,621,688 |
| 2025-11-13 | WITZSCHE CHRISTINE | Officer | Option Exercise | 1,000 | $52,930 |
| 2025-11-13 | WITZSCHE CHRISTINE | Officer | Sale | 1,000 | $164,306 |
| 2025-10-29 | TEMPLETON RICHARD K | Chairman of the Board | Gift | 2,420 | - |
| 2025-08-25 | BAHAI AHMAD | Officer | Option Exercise | 1,500 | $118,890 |
| 2025-08-25 | BAHAI AHMAD | Officer | Sale | 1,500 | $308,030 |
| 2025-08-25 | BAHAI AHMAD | Officer | Gift | 488 | $100,513 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
33 analysts
Stifel
2026-01-16
Hold
Hold
Wells Fargo
2026-01-15
Equal-Weight
Equal-Weight
Truist Securities
2025-12-19
Hold
Hold
Goldman Sachs
2025-12-15
Buy
Sell
JP Morgan
2025-10-22
Overweight
Overweight
TD Cowen
2025-10-22
Buy
Buy
Cantor Fitzgerald
2025-10-22
Neutral
Neutral
Truist Securities
2025-10-22
Hold
Hold
Rosenblatt
2025-10-22
Buy
Buy
Wells Fargo
2025-10-22
Equal-Weight
Equal-Weight
Past News Coverage
Recent headlines mentioning TXN from our newsroom.
Newest → oldest
No matching news yet.