TEXAS INSTRUMENTS INC (TXN) Factsheet
TEXAS INSTRUMENTS INC (TXN) Stock Analysis
Analysis from 10-Q filed 2025-10-23. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 18.7%. FCF margin 20.2%. D/E 0.8x. Source: 10-Q filed 2025-10-23.
| Metric | Value | Context |
|---|---|---|
| ROIC | 18.7% | Solid returns |
| FCF Margin | 20.2% | Strong cash generation |
| Debt/Equity | 0.8x | Moderate leverage |
ROIC 18.7% — Top 25% of sector peers. FCF margin 20.2% — Top 25%.
Explore TEXAS INSTRUMENTS INC: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for TXN: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: TEXAS INSTRUMENTS INC earns 18.7% ROIC, Top 25% in Technology
ROIC TTM 18.7%, sector median 4.8%, Top 25%. DuPont: NOPAT margin 30.8% × asset turnover 0.5x. Gross margin 57.3%. Operating margin 35.3%. Source: 10-Q filed 2025-10-23.
| Metric | TXN | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.7% | Good | Above sector median of 4.8% |
| Return on Equity (ROE) | 32.4% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 57.3% | Excellent | Strong pricing power |
| Operating Margin | 35.3% | Excellent | Efficient operations |
Cash Flow: TEXAS INSTRUMENTS INC generates $3.7B FCF at 20.2% margin, positive NaN/8 quarters
FCF TTM $3.7B. FCF margin 20.2%, Top 25%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-23.
| Metric | TXN | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 20.2% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $3.7B | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: TEXAS INSTRUMENTS INC at 0.8x leverage
Debt/Equity 0.8x. Total debt $14.1B, cash & investments $5.1B. Source: 10-Q filed 2025-10-23.
| Metric | TXN | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.8x | Adequate | Moderate leverage |
| Net Cash Position | $-8.9B | Warning | Net debt position |
Valuation: TEXAS INSTRUMENTS INC trades at 33.1x earnings
P/E 33.1x. EV/Sales 10.0x. FCF yield 2.1%. Dividend yield 2.9%. Source: 10-Q filed 2025-10-23.
| Metric | TXN | Rating | Context |
|---|---|---|---|
| P/E Ratio | 33.1x | Adequate | Premium valuation |
| EV/Sales | 10.0x | Warning | Growth premium priced in |
| FCF Yield | 2.1% | Adequate | Lower cash yield |
| Dividend Yield | 2.9% | Adequate | Growth focus over income |
Capital Allocation: TEXAS INSTRUMENTS INC returns 3.4% shareholder yield
Total shareholder yield 3.4% (div 2.9% + buyback 0.6%). Capital returned $6.0B TTM. Source: 10-Q filed 2025-10-23.
| Metric | TXN | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.4% | Good | Dividend + buyback yield combined |
| Buyback Yield | 0.6% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $6.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.7% | Top 25% | 3.9x above |
| Free Cash Flow Margin | 20.2% | Top 25% | 2.4x above |
| Gross Margin | 57.3% | Top 50% | 1.1x above |
| Operating Margin | 35.3% | Top 5% | 7.5x above |
| Return on Equity (ROE) | 32.4% | Top 25% | 6.7x above |
| P/E Ratio | 33.1x | N/A | - |
Financial Scorecard
| Metric | TXN | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 18.7% | Good | Top 25% of sector (median: 4.8%) |
| Free Cash Flow Margin | 20.2% | Excellent | Top 25% of sector (median: 8.5%) |
| Gross Margin | 57.3% | Excellent | Top 50% of sector (median: 51.4%) |
| Debt to Equity Ratio | 83.7% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 33.1x | Adequate | Growth premium |
| Free Cash Flow Yield | 2.1% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is TEXAS INSTRUMENTS INC's Return on Invested Capital (ROIC)?
TEXAS INSTRUMENTS INC (TXN) has a trailing twelve-month Return on Invested Capital (ROIC) of 18.7%. Sector median 4.8%. Source: 10-Q filed 2025-10-23.
Q: What is TEXAS INSTRUMENTS INC's Free Cash Flow Margin?
TEXAS INSTRUMENTS INC (TXN) has a free cash flow margin of 20.2%, generating $3.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-23.
Q: What is TEXAS INSTRUMENTS INC's P/E ratio and how does it compare to peers?
TEXAS INSTRUMENTS INC (TXN) trades at a P/E ratio of 33.1x, which is above the sector median of N/A. EV/Sales 10.0x. FCF yield 2.1%. Source: 10-Q filed 2025-10-23.
Q: Does TEXAS INSTRUMENTS INC pay a dividend?
TEXAS INSTRUMENTS INC (TXN) currently pays a dividend yield of 2.9%. Total shareholder yield (dividend + buybacks) 3.4%. Source: 10-Q filed 2025-10-23.
Q: How much debt does TEXAS INSTRUMENTS INC have?
TEXAS INSTRUMENTS INC (TXN) has a debt-to-equity ratio of 0.8x with total debt of $14.1 billion. Net debt $8.9 billion. Source: 10-Q filed 2025-10-23.
Q: What is TEXAS INSTRUMENTS INC's revenue and earnings growth?
TEXAS INSTRUMENTS INC (TXN) grew revenue by 14.9% year-over-year. EPS +10.8% YoY. Source: 10-Q filed 2025-10-23.
Q: Is TEXAS INSTRUMENTS INC buying back stock?
TEXAS INSTRUMENTS INC (TXN) repurchased $982.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.6%. Source: 10-Q filed 2025-10-23.
Q: How does TEXAS INSTRUMENTS INC compare to competitors in Technology?
Compared to other companies in Technology, TEXAS INSTRUMENTS INC (TXN) shows: ROIC 18.7%, sector median 4.8% (Top 25%). FCF margin 20.2%, sector median 8.5% (Top 25%). Gross margin 57.3%, 5.9pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with TEXAS INSTRUMENTS INC?
No quantitative warning flags fired for TEXAS INSTRUMENTS INC (TXN) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-23.
Data Source: Data sourced from 10-Q filed 2025-10-23. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.