# Texas Instruments Incorporated (TXN) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Semiconductors & Semiconductor Equipment. Price $258.44, market value $236.0 billion.

## Valuation
- **P/E (trailing): 39.2×** (5-yr avg 24.9×, 3-yr avg 29.5×). Texas Instruments Incorporated trades at 39.2× trailing earnings, well above its own five-year average of 24.9×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 24.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 5.05**. A PEG of 5.05 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 12.1×**. Each dollar of revenue is priced at 12.1×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 13.1×**. The shares trade at 13.1× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 2.3%** (5-yr avg 2.4%). Free cash flow equals 2.3% of the market value, in line with its five-year average of 2.4%.
- **Earnings yield: 2.5%**. The inverse of the P/E: 2.5% of the price is earned each year.

## Profitability
- **Gross margin: 58.3%**. Texas Instruments Incorporated keeps 58.3% of revenue after the direct cost of what it sells.
- **Operating margin: 37.3%**. 37.3% of revenue is left after running the business, an exceptional level.
- **Net margin: 28.3%**. 28.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 30.7%**. 30.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 21.1%**. Return on all capital, debt included, is 21.1%: comfortably above what that capital costs.
- **Return on assets: 17.5%**. Each dollar of assets produces 17.5% of profit.

## Growth
- **Revenue growth (1 yr): 13.0%** (3-yr -4.1%/yr, 5-yr 4.1%/yr). Revenue grew 13.0% over the last year, against 4.1% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 4.8%** (3-yr -16.6%/yr, 5-yr -1.8%/yr). Earnings per share rose 4.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -24.0%/yr**. Free cash flow has compounded at -24.0% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.86**. Debt is 0.86 times equity, moderate leverage.
- **Altman Z-score: 9.48**. A Z-score of 9.48 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.20%** ($5.62 per share, trailing). Texas Instruments Incorporated yields 2.20%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 100%** (95% of free cash flow). 100% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 22**. 22 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 8.1%/yr** (1-yr 4.6%). The dividend has grown 8.1% a year over five years.

## Analyst view
- **Analyst consensus: buy** (31 analysts). 31 analysts cover Texas Instruments Incorporated; the consensus is buy, with an average price target of $324.71 (+26% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 40.8%** (YTD 50.7%, 3-mo -9.3%). The shares are up 40.8% over twelve months including dividends.
- **From 52-week high: -22.6%** (69.2% above the low). Trading 23% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 1.38** (volatility 42%). Beta of 1.38 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TXN · Page: https://foliofundamentals.com/stocks/txn

Not investment advice.