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 -38.41%.
- The gross profit margin for TEXAS INSTRUMENTS INC is rather high; currently it is at 56.50%. 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.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 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. Despite the fact that TXN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.51 is high and demonstrates strong liquidity.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.7%. 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.
--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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