Texas Instruments Inc. (TXN) Stock

Texas Instruments Inc. trades at a P/E ratio of 39.22, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 37.59 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.20 indicates a premium valuation even accounting for growth.

With a beta of 0.99, Texas Instruments Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 11.47 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Texas Instruments Inc. achieves a profit margin of 30.40%, meaning it retains $30.40 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 32.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 29.20% and ROA at 10.00%, the company generates strong returns on invested capital.

Texas Instruments Inc.'s revenue grew by 11.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 6.70% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SEMICONDUCTORS & RELATED DEVICES industry averages for proper context.

Texas Instruments Inc. offers a dividend yield of 2.63%, paying $5.32 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 4/30/2025.

The dividend sustainability can be assessed through the payout ratio - Texas Instruments Inc. pays $5.32 per share in dividends against earnings of $5.28 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for 5/13/2025.

Texas Instruments Inc. has a market capitalization of $188.13B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 908.47M shares outstanding, the company's ownership is relatively concentrated. As a major player in the SEMICONDUCTORS & RELATED DEVICES industry, it competes with other firms in this sector.

Texas Instruments Inc.'s book value per share is $18.05, while the current stock price is $221.00, resulting in a price-to-book (P/B) ratio of 12.24. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

37 analysts cover TXN with 32% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $183.82 implies -16.8% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 10 Buy, 20 Hold, 2 Sell, 3 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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MACD and moving average data are not available for this stock.