# Texas Instruments Incorporated (TXN) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Technology / Semiconductors & Chip Equipment. Price $312.49, market value $285.7 billion.

## Valuation
- **P/E (trailing): 40.5×** (5-yr avg 24.9×, 3-yr avg 29.5×). Texas Instruments Incorporated trades at 40.5× 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 27.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 5.62**. A PEG of 5.62 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 13.8×**. Each dollar of revenue is priced at 13.8×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 14.9×**. The shares trade at 14.9× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 2.6%** (5-yr avg 2.4%). Free cash flow equals 2.6% 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: 60.2%**. Texas Instruments Incorporated keeps 60.2% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 40.8%**. 40.8% 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: 24.7%**. Return on all capital, debt included, is 24.7%: comfortably above what that capital costs.
- **Return on assets: 20.6%**. Each dollar of assets produces 20.6% 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.
- **Current ratio: 4.35** (quick 4.35). Current assets cover the next year's liabilities 4.35 times.
- **Altman Z-score: 11.47**. A Z-score of 11.47 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.95%** ($5.68 per share, trailing). Texas Instruments Incorporated yields 1.95%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 100%** (71% 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** (29 analysts). 29 analysts cover Texas Instruments Incorporated; the consensus is buy, with an average price target of $336.86 (+8% 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): 95.8%** (YTD 82.2%, 3-mo 10.2%). The shares are up 95.8% over twelve months including dividends.
- **From 52-week high: -6.4%** (104.6% above the low). Trading 6% 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): 66**. An RSI of 66 is neutral.
- **Beta (1 yr): 1.47** (volatility 43%). Beta of 1.47 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.