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Texas Instruments Inc
TXN : NASDAQ : Technology
$47.49 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 5,117,000
08/26/14 - 4:00 PM ET

Financial Analysis


TEXAS INSTRUMENTS INC's gross profit margin for the second quarter of its fiscal year 2014 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. TEXAS INSTRUMENTS INC is extremely liquid. Currently, the Quick Ratio is 2.40 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.43% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)3292.03047.0
EBITDA ($mil)1288.0949.0
EBIT ($mil)981.0628.0
Net Income ($mil)683.0660.0


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)2804.03244.0
Total Assets ($mil)17810.019398.0
Total Debt ($mil)4648.05165.0
Equity ($mil)10466.011068.0


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin64.0659.4
EBITDA Margin39.1231.14
Operating Margin29.820.61
Sales Turnover0.70.63
Return on Assets12.9710.67
Return on Equity22.0718.7
Debt Q2 FY14 Q2 FY13
Current Ratio4.142.87
Debt/Capital0.310.32
Interest Expense24.024.0
Interest Coverage40.8826.17


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)1067.561101.17
Div / share0.30.28
EPS0.620.58
Book value / share9.810.05
Institutional Own % n/a n/a
Avg Daily Volume4984405.06508073.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 26.35 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 19.76. Conducting a second comparison, its price-to-book ratio of 4.91 indicates a significant premium versus the S&P 500 average of 2.73 and a premium versus the industry average of 3.99. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TXN 23.16 Peers 26.35   TXN 14.40 Peers 15.59

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TXN is trading at a discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TXN is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TXN 17.57 Peers 19.35   TXN 0.89 Peers 2.14

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

TXN is trading at a valuation on par with its peers.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXN 4.91 Peers 3.99   TXN 15.55 Peers 83.77

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TXN is trading at a premium 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TXN 4.10 Peers 4.05   TXN 2.50 Peers 14.31

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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