Texas Instruments Inc

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TXN : NASDAQ : Technology
$74.75 | %
Today's Range: 74.16 - 74.89
Avg. Daily Volume: 5241800.0
01/20/17 - 4:00 PM ET

Financial Analysis

TEXAS INSTRUMENTS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. TEXAS INSTRUMENTS INC is extremely liquid. Currently, the Quick Ratio is 2.11 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.16% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)3675.03429.0
EBITDA ($mil)1633.01452.0
EBIT ($mil)1396.01167.0
Net Income ($mil)968.0798.0

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)3137.02735.0
Total Assets ($mil)16216.016540.0
Total Debt ($mil)3611.04132.0
Equity ($mil)10286.09970.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin66.3164.22
EBITDA Margin44.4342.34
Operating Margin37.9934.03
Sales Turnover0.810.79
Return on Assets20.0417.98
Return on Equity31.629.83
Debt Q3 FY16 Q3 FY15
Current Ratio3.312.92
Interest Expense18.022.0
Interest Coverage77.5653.05

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1001.121019.63
Div / share0.380.34
Book value / share10.279.78
Institutional Own % n/a n/a
Avg Daily Volume5212651.05010126.0


BUY. TEXAS INSTRUMENTS INC's P/E ratio indicates a discount compared to an average of 32.67 for the Semiconductors & Semiconductor Equipment industry and a value on par with the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 7.29 indicates a significant premium versus the S&P 500 average of 2.84 and a significant premium versus the industry average of 4.52. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TXN 23.76 Peers 32.67   TXN 16.77 Peers 18.82

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TXN 22.01 Peers 19.26   TXN 1.97 Peers 1.90

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

TXN is trading at a premium to 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXN 7.29 Peers 4.52   TXN 13.30 Peers 17.50

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 trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TXN 5.70 Peers 4.66   TXN 0.49 Peers 12.67

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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