Stock Analysis
Texas Instruments IncorporatedTXN
P/E 41.72×· 5Y range 15.44–56.59×· top 7% of history
Sector: Technology · Industry: Semiconductors
AnalystsHold43 analystsP/E 41.7× sits at the 93rd percentile of its 5.086926762491444-year history.
Cash covers 36% of debt · FY 2025.
PMP Verdict
High quality, but expensive
Strengths
- Profitability95
- Quality89
Risks
- Valuation15
- Growth25
Excellent business. Weak entry price.
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Altman Z 11.9 — safe-zone balance sheet
- ✓ROE 37.2% — efficient capital deployment
- ✓Interest coverage 11.5× — debt well covered
What's happening with TXN
Profile
Strong moat, profitability, earnings quality and financial health; valuation and growth lag behind.
How is each axis scored?
- Valuation15/100 · Weak
- P/E vs own history (93th pct)0/25
- FCF yield (2.1%)5/25
- P/S (13.0x)5/25
- EV/EBIT (36.0x)5/25
- Growth25/100 · Weak
- Revenue CAGR (-0.9%)0/25
- Net income CAGR (-10.4%)0/25
- EPS CAGR 5Y (-9.9%)0/25
- Fwd implied growth (50.1%)25/25
- Profitability95/100 · Strong
- ROIC (23.0%)20/25
- ROE (37.2%)25/25
- Net margin (31.1%)25/25
- Operating margin (37.3%)25/25
- Financial Health87/100 · Strong
- Altman Z (11.88)25/25
- Current ratio (4.35)25/25
- Interest coverage (11.5x)25/25
- Net cash / debt (D/A 25%)12/25
- Quality89/100 · Strong
- Piotroski F (7/9)22/25
- Beneish M (-2.86)25/25
- FCF conversion (88%)22/25
- Margin stability (σ 5.9%)20/25
- Moat100/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (63.9%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 24.6%)25/25
Risk Flags
- ⚠Revenue shrinking 0.9%/yr
- ⚠P/E 41.7× at top 7% of 5-year history
About Texas Instruments Incorporated
Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Show more
Texas Instruments is the world's largest maker of analog chips, which are used to process real-world signals such as sound and power. Texas Instruments also has a leading market share position in processors and microcontrollers used in a wide variety of electronics applications.
Headquarters: DALLAS, TX · Employees: 33,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
15EP/E (TTM)41.7xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 15.4x–56.6x · 93rd pct
P/FCF47.9xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield2.1%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 0.5%–4.7% · 61st pct
P/S (TTM)12.98xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 6.8x–16.5x · 93rd pct
EV/EBIT36.0xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 13.0x–47.9x · 92nd pct
EV/Sales13.7xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E27.8xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio15.52xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.53B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield1.99%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio84.5%C
Grade C: HighDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
95A+ROIC23.0%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE37.2%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA17.3%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin31.1%A
Grade A: HighNet Income / Revenue
Operating Margin37.3%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin58.3%A
Grade A: PremiumGross Profit / Revenue
FCF Margin27.5%A
Grade A: HighFCF / Revenue
True FCF Margin25.4%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
25ERevenue CAGR-0.9%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR-10.4%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)-9.9%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth50.1%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-2.4%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income6.8%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue2.1%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
87AAltman Z-Score11.88A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio4.35xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio2.94xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage11.5xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment1.6yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT1.2xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.83xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.36xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
89APiotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.86A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion88.5%A
Grade A: StrongFCF / Net Income
Margin Stability5.9%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue17.0%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.56xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
FARMER CURTIS C Filed | FARMER CURTIS C | Grant / award | +107 | |
PATSLEY PAMELA H Filed | PATSLEY PAMELA H | Grant / award | +107 | |
Abraham Tsedeniya Filed | Abraham Tsedeniya | Option exercise | -1365 | |
Abraham Tsedeniya Filed | Abraham Tsedeniya | SellOpen market sale | -592 | |
Abraham Tsedeniya Filed | Abraham Tsedeniya | SellOpen market sale | -6408 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Abraham Tsedeniya Filed | Abraham Tsedeniya | Option exercise | +1.4K | |
Knecht Julie C. Filed | Knecht Julie C. | Grant / award | +7.2K | |
FARMER CURTIS C Filed | FARMER CURTIS C | Grant / award | +85 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
100A+ROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)63.9%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor24.6%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$6.63
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$7.67
Cash & short-term investments per share (Finnhub)
Book Value / Share$19.72
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$13.55B
Total debt obligations (short + long term)
Cash & Equiv.$4.88B
Cash and short-term investments
Net Debt$8.67B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$16.27B
Shareholders' equity (book value)
Asset / Liability1.89xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$252.50B
Current Market Capitalization
Beta1.42C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 16, 2026
Key Insights: Texas Instruments Incorporated (TXN)
TXN is down 0.94% in after-hours trading. Texas Instruments Incorporated meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 11.88 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.86 suggests a low likelihood of earnings manipulation. Revenue has been contracting (CAGR ≈ -1%), which weighs on the growth outlook.
- Texas Instruments Incorporated converts about 28% of revenue into free cash flow — strong cash generation.
- Takes ~1.6 years to repay net debt from free cash flow.
- At a valuation score of 15/100, TXN trades at a premium to its historical multiples (P/E 41.7).
- Return on equity of 37.2% is well above the market average.
See how TXN ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all TXN moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 14 | After-hours | 276.39 | -3.98% | -2.70 |
| Oct 2 | Regular | 294.41 | +4.66% | 2.63 |
| Oct 2 | After-hours | 293.92 | +4.48% | 2.52 |
Frequently Asked Questions about TXN
What is the current Texas Instruments Incorporated (TXN) stock price?
TXN is trading at $276.49 in after-hours trading, down 0.94% on the session. PreMarketPrice tracks TXN pre-market, intraday and after-hours prices.
Is TXN stock a buy right now?
PreMarketPrice's quantitative model rates Texas Instruments Incorporated's financial health at 87/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is TXN stock overvalued?
Texas Instruments Incorporated trades at a trailing P/E of 41.7 and our valuation score rates it 15/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Texas Instruments Incorporated report earnings?
No confirmed earnings date is currently scheduled for TXN. The Earnings section lists recent reports and updates as dates are announced.
What sector does Texas Instruments Incorporated operate in?
Texas Instruments Incorporated operates in the Technology sector, within the Semiconductors industry. The Related Stocks section lists sector peers for comparison.
What does Texas Instruments Incorporated do?
Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators.
About Texas Instruments Incorporated (TXN) Stock
Texas Instruments Incorporated (TXN) is a US-listed stock operating in the Technology sector, specifically the Semiconductors industry. As of the latest update, Texas Instruments Incorporated is trading at $276.49, down 0.94% on the day with a market capitalization of $252.5 billion. The financial health score for TXN is 87/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for TXN stock.
TXN Stock Analysis & Key Metrics
On PreMarketPrice, you can track Texas Instruments Incorporated (TXN) across multiple dimensions:
- Pre-market price & movement: Real-time TXN stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for TXN with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Texas Instruments Incorporated across multiple reporting periods.
- Financial health score: A composite score of 87/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for TXN.
- Sector peers: Compare TXN against 6 other technology stocks on key financial metrics.
Is TXN a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Texas Instruments Incorporated (TXN) as an investment. The financial health score of 87/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Texas Instruments Incorporated (TXN) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.