TXN
TEXAS INSTRUMENTS INC
Technology • CIK: 0000097476
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Market Cap
$157.70B
P/E (TTM)
31.7x
Rev Growth (TTM)
+13.0%
Net Margin (TTM)
28.1%
FCF Yield (TTM)
1.7%
FCF Margin (TTM)
14.7%
Cash Flow Health
Free Cash Flow6/8 positive
TTM$2.6B
Q4 '25
$1.3B+34%
Q3 '25
$993M+79%
FCF Margin
TTM14.7%
Q4 '2530.0%+43%
Sector: 14.5%Above Avg
OCF Margin40.5%
OCF/NI1.44x
CapEx Coverage1.6x
FCF Yield1.7%
FCF Growth (2Y)-24%
Cash Conversion Cycle
228 days
DSO: 40+DIO: 228−DPO: 40
Capital Allocation & Returns
Growth Focused
Total Shareholder YieldTTM
TTM0.9%
Div Yield0.0%
+Buyback (TTM)0.9%
Prioritizing reinvestment over distributions
Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$2.6B
Stock Repurchases (TTM)$1.5B
Capital Return / FCF248.8%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
21.3%
Stable
+0.1% YoY+2.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
29.8%
8Q: 30.1%
Asset Turnover
0.51x
8Q: 0.47x
Leverage (1+D/E)
1.86x
D/E: 0.86x
DuPont: 28.3% ≈ 21.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
1.46x
8Q:1.43x
Flat
Invested Cap Turn
0.71x
8Q:0.72x
-3.2%
CapEx Intensity
18.4%
8Q:20.6%
CapEx/Depreciation
2.37x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $17.7B | $4.4B↓6.7% | $4.7B↑6.6% | $4.4B↑9.3% | $4.1B↑1.5% | $4.0B↓3.5% | $4.2B↑8.6% | $3.8B↑4.4% | $3.7B |
Operating Income | $6.0B | $1.5B↓11.4% | $1.7B↑6.4% | $1.6B↑18.1% | $1.3B↓3.8% | $1.4B↓11.4% | $1.6B↑24.5% | $1.2B↓3.0% | $1.3B |
Net Income | $5.0B | $1.2B↓14.7% | $1.4B↑5.3% | $1.3B↑9.8% | $1.2B↓2.2% | $1.2B↓11.5% | $1.4B↑20.9% | $1.1B↑1.9% | $1.1B |
Operating Cash Flow | $7.2B | $2.3B↑2.9% | $2.2B↑17.7% | $1.9B↑119.1% | $849.0M↓57.5% | $2.0B↑15.4% | $1.7B↑10.2% | $1.6B↑54.5% | $1.0B |
Free Cash Flow | $2.6B | $1.3B↑33.8% | $993.0M↑78.9% | $555.0M↑302.6% | $-274.0M↓134.0% | $806.0M↑93.8% | $416.0M↓17.9% | $507.0M↑319.5% | $-231.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
31.7x
Valuation Lenses
Earnings
31.7x
vs – sector
Cash Flow
128.8x
EV/FCF vs –
Growth-Adj
2.4xPEG
Expensive for growth
Quality-Adj
1.5P/E per %ROIC
ROIC: 21.3%
Shareholder Returns
Dividend
–
Buyback
0.9%
Total Yield
0.9%
Market Cap$157.70B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
97/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 25%
30.1%
8Q:–
Return on Invested Capital (ROIC)Top 25%
21.3%
8Q:–
+2.2%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 29.8%
Asset Turnover: 0.51x
Earnings Quality
Cash Conversion
1.44x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin57.0%
Capital Efficiency
Invested Capital Turnover0.71x
Working Capital
Cash Conversion Cycle228 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
53/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
13.0%
OpInc Growth YoY
7.0%
EPS Growth YoY
4.6%
FCF 3Y CAGR
-24.0%
Growth Quality Analysis
⚠Working Capital Drag: FCF growth lagging revenue by 37.0%
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
57.0%
Operating
34.1%
Top 25% in sector
Net
28.1%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-13.4 pts
FCF: 14.7% | Net: 28.1%
FCF margin lags net margin by 13.4 pts
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Adequate
Net Debt / EBITDA
–Net Debt: $9.17B
Interest Coverage
–
Leverage Metrics
Debt-to-Equity
0.86x
Balance sheet risk & solvency analysis