Stocks · Semiconductors

Texas Instruments Incorporated (TXN)

$307.22

+3.05% last session

Market value

$272.3bn

P/E ratio

36.8

Dividend yield

3.39%

52-week range

$153–$334

What Texas Instruments Incorporated does

We design and manufacture semiconductors that we sell to electronics designers and manufacturers all over the world. Our operations began in 1930, and we are incorporated in Delaware. With headquarters in Dallas, Texas, we have design, manufacturing or sales operations in more than 30 countries.

Semiconductors · based in the US · listed since 1953Biggest source of revenue: Analog (79%) · breakdownCompany website ↗From the annual report ↗

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CGrowthModest growth

Sales growth, last 12 months20.3% · 95/100

Sales growth a year, 5 years4.1% · 46/100

Earnings per share growth a year, 5 years−1.8% · 26/100

AProfitabilityHighly profitable

Net profit margin34.3% · 100/100

Return on equity41% · 100/100

Return on capital, 10-year average43.1% · 100/100

AFinancial strengthRock solid

Net debt ÷ operating profit1.5× · 70/100

Current ratio (short-term assets ÷ debts)5.59 · 100/100

FValuationVery expensive

P/E against its own 10-year history100th percentile · 0/100

Free cash flow yield2.8% · 49/100

Our base-case value vs price−87% · 5/100

BMomentumRising

Share price, last 12 months65.3% · 100/100

Share price, last 3 months1.8% · 55/100

Price

+81.4% over 1Y

27 Oct 2026$307.28

Daily closing prices. Source: Twelve Data.

If you'd invested £1,000

in pounds, including currency moves

Invested	Worth now	Per year	+ dividends received	Same in the S&P 500
1 year ago Oct 2025	£1,878	+87.8%	+£34	£1,115 TXN ahead
3 years ago Oct 2023	£1,977	+25.5%	+£102	£1,683 TXN ahead
5 years ago Oct 2021	£1,699	+11.2%	+£136	£1,739 index ahead
10 years ago Oct 2016	£3,979	+14.8%	+£492	£3,326 TXN ahead

Over 10 years, £1,000 became £4,472 including dividends. Past returns don't predict future ones.

Bull vs bear

The numbers lean bearish (7 vs 18)

The bull case

Very high returns on capital●●●

Averages 43% after tax, a sign of a durable advantage (a 'moat').

Growth is speeding up●●○

Revenue growth over the last 12 months (20%) is well above its 5-year average (4%).

Has always bounced back●○○

Recovered from all 12 past falls of 20%+ in the price history.

Reliable dividend grower●○○

Raised its dividend 10 years in a row.

The bear case

Expensive against its own history●●●

P/E 39.6 vs a 10-year median of 24.1 (range 17–36).

Priced above even our optimistic case●●●

The price is 348% above our bull case.

Cyclical revenue●●○

Revenue fell in 3 of the last 10 years: results can swing with the economy.

Margins shrinking●●○

Operating margin down from 50.6% to 34.1% in three years: competition or costs biting.

Questionable capital allocation●●○

Passes only 3 of 7 capital-allocation checks.

Heavy share-based pay●●○

$419m in 2025: 2.4% of revenue, 16.1% of free cash flow. It's a real cost even though no cash leaves

Can you answer every bear point? Put your answers in your thesis under risks.

See the full picture on Texas Instruments Incorporated

Ten years of results, revenue by product and region, a management scorecard, bear/base/bull valuations, analyst targets, every SEC filing explained, and a thesis that checks itself after each report. Free.

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Texas Instruments Incorporated (TXN)

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Bull vs bear

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