TEXAS INSTRUMENTS INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. TEXAS INSTRUMENTS INC has average liquidity. Currently, the Quick Ratio is 1.48 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.49% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||3232.0||3292.0|
|Net Income ($mil)||696.0||683.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||3306.0||2804.0|
|Total Assets ($mil)||17532.0||17810.0|
|Total Debt ($mil)||4884.0||4648.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||64.67||64.06|
|Return on Assets||17.12||12.97|
|Return on Equity||29.42||22.07|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||1034.1||1067.56|
|Div / share||0.34||0.3|
|Book value / share||9.87||9.8|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||6479008.0||5557981.0|
BUY. The current P/E ratio indicates a significant discount compared to an average of 28.23 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 21.18. For additional comparison, its price-to-book ratio of 5.12 indicates a significant premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 6.08. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, TEXAS INSTRUMENTS INC proves to trade at a discount to investment alternatives within the industry.
|TXN 18.17||Peers 28.23||TXN NA||Peers 22.75|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
TXN is trading at a significant discount to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|TXN 17.98||Peers 17.84||TXN NM||Peers 0.82|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
TXN is trading at a premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
TXN's negative PEG ratio makes this valuation measure meaningless.
|TXN 5.12||Peers 6.08||TXN 33.65||Peers 59.85|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
TXN is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, TXN is expected to significantly trail its peers on the basis of its earnings growth rate.
|TXN 3.97||Peers 4.15||TXN 4.81||Peers 15.26|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
TXN is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
TXN significantly trails its peers on the basis of sales growth
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