Texas Instruments Inc. Stock Buy Recommendation Reiterated (TXN)
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- Net operating cash flow has increased to $1,088.00 million or 12.04% when compared to the same quarter last year. In addition, TEXAS INSTRUMENTS INC has also vastly surpassed the industry average cash flow growth rate of -93.09%.
- The gross profit margin for TEXAS INSTRUMENTS INC is rather high; currently it is at 56.30%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TXN's net profit margin of 8.86% significantly trails the industry average.
- TEXAS INSTRUMENTS INC's earnings per share declined by 8.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, TEXAS INSTRUMENTS INC reported lower earnings of $1.50 versus $1.87 in the prior year. This year, the market expects an improvement in earnings ($1.74 versus $1.50).
- TXN, with its decline in revenue, slightly underperformed the industry average of 11.0%. Since the same quarter one year prior, revenues fell by 12.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Despite currently having a low debt-to-equity ratio of 0.52, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.50 is sturdy.
--Written by a member of TheStreet Ratings Staff. It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE
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