Texas Instruments IncorporatedFind Ratings Reports
TEXAS INSTRUMENTS INC's gross profit margin for the fourth quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. TEXAS INSTRUMENTS INC is extremely liquid. Currently, the Quick Ratio is 3.34 which clearly shows the ability to cover any short-term cash needs. TXN managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.14% 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||Q4 FY20||Q4 FY19|
|Net Sales ($mil)||4076.0||3350.0|
|Net Income ($mil)||1688.0||1070.0|
|Balance Sheet||Q4 FY20||Q4 FY19|
|Cash & Equiv. ($mil)||6568.0||5387.0|
|Total Assets ($mil)||19351.0||18018.0|
|Total Debt ($mil)||7119.0||6135.0|
|Profitability||Q4 FY20||Q4 FY19|
|Gross Profit Margin||69.73||68.57|
|Return on Assets||28.91||27.84|
|Return on Equity||60.9||56.33|
|Debt||Q4 FY20||Q4 FY19|
|Share Data||Q4 FY20||Q4 FY19|
|Shares outstanding (mil)||919.35||932.03|
|Div / share||1.02||0.9|
|Book value / share||9.99||9.56|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4830301.0||4067976.0|
BUY. TEXAS INSTRUMENTS INC's P/E ratio indicates a significant discount compared to an average of 69.92 for the Computer and Electronic Product Manufacturing subsector and a significant discount compared to the S&P 500 average of 44.30. For additional comparison, its price-to-book ratio of 19.33 indicates a significant premium versus the S&P 500 average of 4.38 and a significant premium versus the subsector average of 12.54. The current price-to-sales ratio is well above the S&P 500 average, but below the subsector average. The valuation analysis reveals that, TEXAS INSTRUMENTS INC seems to be trading at a discount to investment alternatives.
|TXN 32.36||Peers 71.52||TXN 28.93||Peers 34.14|
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.
Discount. 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 discount to its peers.
|TXN 26.75||Peers 31.53||TXN 2.74||Peers 1.54|
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations.
TXN is trading at a valuation on par with its peers.
Premium. 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 premium to its peers.
|TXN 19.33||Peers 12.54||TXN 14.14||Peers 57.07|
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 significant 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.
|TXN 12.28||Peers 12.64||TXN 0.54||Peers 23.71|
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 subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
TXN significantly trails its peers on the basis of sales growth.