Texas Instruments Incorporated (TXN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

NVIDIA Corp.

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Analog Devices, Inc.

Microchip Technology, Inc.

Texas Instruments Incorporated

NXP Semiconductors NV

QUALCOMM, Inc.

Intel Corp.

Why is Texas Instruments Incorporated ?

High Management Efficiency with a high ROCE of 53.43%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.33 times

The company has declared Negative results for the last 10 consecutive quarters

DEBT-EQUITY RATIO (HY) Highest at 60.82 %
CASH AND EQV(HY) Lowest at USD 10,067 MM
EPS(Q) Lowest at USD 1.27

With ROCE of 24.02%, it has a fair valuation with a 13.49 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.31%, its profits have risen by 8.7% ; the PEG ratio of the company is 7.3

High Institutional Holdings at 88.75%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 4.31% in the last 1 year, much lower than market (S&P 500) returns of 14.90%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Texas Instruments Incorporated should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Texas Instruments Incorporated for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Texas Instruments Incorporated

4.31%

-0.13

41.09%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.10%

EBIT Growth (5y)

0.23%

EBIT to Interest (avg)

31.22

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.56

Tax Ratio

10.36%

Dividend Payout Ratio

100.97%

Pledged Shares

Institutional Holding

88.75%

ROCE (avg)

53.43%

ROE (avg)

48.11%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

20.61

EV to EBIT

56.14

EV to EBITDA

42.35

EV to Capital Employed

13.49

EV to Sales

19.50

PEG Ratio

7.27

Dividend Yield

1.51%

ROCE (Latest)

24.02%

ROE (Latest)

31.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 7,153 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 111.91%

DIVIDEND PER SHARE(HY)

Highest at USD 9.6

DEBTORS TURNOVER RATIO(HY)

Highest at 9.6 times

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 60.82 %

CASH AND EQV(HY)

Lowest at USD 10,067 MM

EPS(Q)

Lowest at USD 1.27

Here's what is working for Texas Instruments Incorporated

Dividend per share

Highest at USD 9.6 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 7,153 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend Payout Ratio

Highest at 111.91% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Debtors Turnover Ratio

Highest at 9.6 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at USD 557 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Texas Instruments Incorporated

Debt-Equity Ratio

Highest at 60.82 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

EPS

Lowest at USD 1.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 10,067 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents