Texas Instruments Inc

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TXN : NASDAQ : Technology
$88.27 | %
Today's Range: 86.5 - 88.45
Avg. Daily Volume: 4192800.0
09/22/17 - 4:00 PM ET

Financial Analysis


TEXAS INSTRUMENTS INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. TEXAS INSTRUMENTS INC is extremely liquid. Currently, the Quick Ratio is 2.37 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.48% 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 FY17 Q2 FY16
Net Sales ($mil)3693.03273.0
EBITDA ($mil)1708.01375.0
EBIT ($mil)1483.01133.0
Net Income ($mil)1056.0819.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2984.02539.0
Total Assets ($mil)16438.015693.0
Total Debt ($mil)3583.03612.0
Equity ($mil)10708.09962.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin68.2466.3
EBITDA Margin46.2442.01
Operating Margin40.1634.62
Sales Turnover0.860.82
Return on Assets25.0520.16
Return on Equity38.4531.76
Debt Q2 FY17 Q2 FY16
Current Ratio4.03.36
Debt/Capital0.250.27
Interest Expense20.021.0
Interest Coverage74.1553.95


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)991.721003.35
Div / share0.50.38
EPS1.030.79
Book value / share10.89.93
Institutional Own % n/a n/a
Avg Daily Volume4144425.04504966.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 46.90 for the Semiconductors & Semiconductor Equipment industry and a discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 7.71 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 5.49. The price-to-sales ratio is well above both the S&P 500 average and 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 20.77 Peers 46.90   TXN 17.54 Peers 18.33

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.

 

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 19.46 Peers 21.72   TXN 1.12 Peers 1.12

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXN 7.71 Peers 5.49   TXN 31.90 Peers 122.55

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TXN 5.82 Peers 5.24   TXN 9.96 Peers 25.22

Premium. 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 premium to 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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