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Texas Instruments

SNSE:TXN
Snowflake Description

Adequate balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TXN
SNSE
$95B
Market Cap
  1. Home
  2. CL
  3. Semiconductors
Company description

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. The last earnings update was 40 days ago. More info.


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TXN Share Price and Events
7 Day Returns
0%
SNSE:TXN
6.3%
Global Semiconductor
6.2%
CL Market
1 Year Returns
24.1%
SNSE:TXN
8.5%
Global Semiconductor
-37.6%
CL Market
TXN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Texas Instruments (TXN) 0% 0% 0% 24.1% - -
Global Semiconductor 6.3% -11.4% -14.4% 8.5% 36.6% 68.1%
CL Market 6.2% -19% -27.4% -37.6% -33% -29.9%
1 Year Return vs Industry and Market
  • TXN outperformed the Semiconductor industry which returned 8.5% over the past year.
  • TXN outperformed the Market in Chile which returned -37.6% over the past year.
Price Volatility
TXN
Industry
5yr Volatility vs Market
Related Companies

TXN Value

 Is Texas Instruments undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Texas Instruments to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Texas Instruments.

SNSE:TXN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 29 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.1%
Perpetual Growth Rate 10-Year CL Government Bond Rate 7.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SNSE:TXN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CL Govt Bond Rate 7.5%
Equity Risk Premium S&P Global 5.4%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.252 (1 + (1- 21%) (6.44%))
1.212
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.47% + (1.212 * 5.44%)
14.06%

Discounted Cash Flow Calculation for SNSE:TXN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Texas Instruments is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SNSE:TXN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.06%)
2020 4,807.22 Analyst x12 4,214.58
2021 5,258.00 Analyst x10 4,041.50
2022 5,394.00 Analyst x4 3,634.91
2023 5,460.85 Est @ 1.24% 3,226.29
2024 5,630.60 Est @ 3.11% 2,916.48
2025 5,879.31 Est @ 4.42% 2,669.88
2026 6,192.84 Est @ 5.33% 2,465.56
2027 6,562.81 Est @ 5.97% 2,290.74
2028 6,984.32 Est @ 6.42% 2,137.33
2029 7,454.85 Est @ 6.74% 2,000.08
Present value of next 10 years cash flows $29,597.00
SNSE:TXN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $7,454.85 × (1 + 7.47%) ÷ (14.06% – 7.47%)
$121,546.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $121,546.03 ÷ (1 + 14.06%)10
$32,609.88
SNSE:TXN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $29,597.00 + $32,609.88
$62,206.88
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $62,206.88 / 933.69
$66.63
SNSE:TXN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in SNSE:TXN represents 1.16761x of NasdaqGS:TXN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.16761x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 66.63 x 1.16761
$77.79
Value per share (USD) From above. $77.79
Current discount Discount to share price of $119.12
= -1 x ($119.12 - $77.79) / $77.79
-53.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Texas Instruments is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Texas Instruments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Texas Instruments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SNSE:TXN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $5.33
NasdaqGS:TXN Share Price ** NasdaqGS (2020-03-30) in USD $102.02
Global Semiconductor Industry PE Ratio Median Figure of 533 Publicly-Listed Semiconductor Companies 18.76x
Chile Market PE Ratio Median Figure of 130 Publicly-Listed Companies 10.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Texas Instruments.

SNSE:TXN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:TXN Share Price ÷ EPS (both in USD)

= 102.02 ÷ 5.33

19.16x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Texas Instruments is overvalued based on earnings compared to the Global Semiconductor industry average.
  • Texas Instruments is overvalued based on earnings compared to the Chile market.
Price based on expected Growth
Does Texas Instruments's expected growth come at a high price?
Raw Data
SNSE:TXN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts
3.1%per year
Global Semiconductor Industry PEG Ratio Median Figure of 226 Publicly-Listed Semiconductor Companies 1.16x
Chile Market PEG Ratio Median Figure of 30 Publicly-Listed Companies 0.78x

*Line of best fit is calculated by linear regression .

SNSE:TXN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.16x ÷ 3.1%

6.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Texas Instruments is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Texas Instruments's assets?
Raw Data
SNSE:TXN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $9.56
NasdaqGS:TXN Share Price * NasdaqGS (2020-03-30) in USD $102.02
Global Semiconductor Industry PB Ratio Median Figure of 786 Publicly-Listed Semiconductor Companies 1.34x
Chile Market PB Ratio Median Figure of 161 Publicly-Listed Companies 0.81x
SNSE:TXN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:TXN Share Price ÷ Book Value per Share (both in USD)

= 102.02 ÷ 9.56

10.68x

* Primary Listing of Texas Instruments.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Texas Instruments is overvalued based on assets compared to the Global Semiconductor industry average.
X
Value checks
We assess Texas Instruments's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Texas Instruments has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TXN Future Performance

 How is Texas Instruments expected to perform in the next 1 to 3 years based on estimates from 29 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Texas Instruments expected to grow at an attractive rate?
  • Texas Instruments's earnings growth is positive but not above the low risk savings rate of 7.5%.
Growth vs Market Checks
  • Texas Instruments's earnings growth is positive but not above the Chile market average.
  • Texas Instruments's revenue growth is positive but not above the Chile market average.
Annual Growth Rates Comparison
Raw Data
SNSE:TXN Future Growth Rates Data Sources
Data Point Source Value (per year)
SNSE:TXN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts 3.1%
SNSE:TXN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 29 Analysts 2.5%
Global Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 20.7%
Global Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 10.5%
Chile Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Chile Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SNSE:TXN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SNSE:TXN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 15,611 6,588 5,501 7
2021-12-31 14,837 6,500 5,104 26
2020-12-31 13,706 5,796 4,442 29
2020-03-31
SNSE:TXN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 14,383 6,649 4,985
2019-09-30 14,750 7,040 5,152
2019-06-30 15,240 7,154 5,294
2019-03-31 15,589 7,184 5,391
2018-12-31 15,784 7,189 5,537
2018-09-30 15,817 6,973 4,649
2018-06-30 15,672 6,589 4,363
2018-03-31 15,348 5,680 4,016
2017-12-31 14,961 5,363 3,648
2017-09-30 14,625 4,821 4,339
2017-06-30 14,184 4,564 4,072
2017-03-31 13,764 4,756 3,835

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Texas Instruments's earnings are expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
  • Texas Instruments's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SNSE:TXN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below

All data from Texas Instruments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SNSE:TXN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 5.96 7.75 4.49 7.00
2021-12-31 5.40 6.87 3.34 27.00
2020-12-31 4.65 5.32 3.00 30.00
2020-03-31
SNSE:TXN Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 5.33
2019-09-30 5.48
2019-06-30 5.58
2019-03-31 5.62
2018-12-31 5.71
2018-09-30 4.75
2018-06-30 4.44
2018-03-31 4.07
2017-12-31 3.68
2017-09-30 4.36
2017-06-30 4.08
2017-03-31 3.83

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Texas Instruments is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Texas Instruments's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Texas Instruments has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TXN Past Performance

  How has Texas Instruments performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Texas Instruments's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Texas Instruments's year on year earnings growth rate has been positive over the past 5 years.
  • Texas Instruments's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Texas Instruments's 1-year earnings growth is negative, it can't be compared to the Global Semiconductor industry average.
Earnings and Revenue History
Texas Instruments's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Texas Instruments Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SNSE:TXN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 14,383.00 4,985.00 1,650.00 1,544.00
2019-09-30 14,750.00 5,152.00 1,679.00 1,558.00
2019-06-30 15,240.00 5,294.00 1,683.00 1,569.00
2019-03-31 15,589.00 5,391.00 1,699.00 1,563.00
2018-12-31 15,784.00 5,537.00 1,716.00 1,559.00
2018-09-30 15,817.00 4,649.00 1,724.00 1,545.00
2018-06-30 15,672.00 4,363.00 1,745.00 1,530.00
2018-03-31 15,348.00 4,016.00 1,742.00 1,524.00
2017-12-31 14,961.00 3,648.00 1,754.00 1,508.00
2017-09-30 14,625.00 4,339.00 1,758.00 1,462.00
2017-06-30 14,184.00 4,072.00 1,777.00 1,440.00
2017-03-31 13,764.00 3,835.00 1,797.00 1,403.00
2016-12-31 13,370.00 3,550.00 1,798.00 1,356.00
2016-09-30 13,145.00 3,341.00 1,785.00 1,322.00
2016-06-30 12,899.00 3,121.00 1,764.00 1,285.00
2016-03-31 12,858.00 2,998.00 1,766.00 1,264.00
2015-12-31 13,000.00 2,943.00 1,776.00 1,267.00
2015-09-30 13,080.00 2,931.00 1,772.00 1,285.00
2015-06-30 13,152.00 2,958.00 1,801.00 1,301.00
2015-03-31 13,212.00 2,944.00 1,803.00 1,330.00
2014-12-31 13,045.00 2,777.00 1,843.00 1,358.00
2014-09-30 12,804.00 2,468.00 1,875.00 1,393.00
2014-06-30 12,548.00 2,273.00 1,878.00 1,429.00
2014-03-31 12,303.00 2,250.00 1,878.00 1,469.00
2013-12-31 12,205.00 2,125.00 1,858.00 1,522.00
2013-09-30 12,156.00 1,882.00 1,829.00 1,601.00
2013-06-30 12,301.00 2,033.00 1,817.00 1,696.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Texas Instruments made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Texas Instruments used its assets more efficiently than the Global Semiconductor industry average last year based on Return on Assets.
  • Texas Instruments has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Texas Instruments's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Texas Instruments has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TXN Health

 How is Texas Instruments's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Texas Instruments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Texas Instruments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Texas Instruments's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Texas Instruments's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Texas Instruments Company Filings, last reported 3 months ago.

SNSE:TXN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 8,907.00 5,803.00 5,387.00
2019-09-30 8,985.00 5,801.00 5,067.00
2019-06-30 8,486.00 5,807.00 4,218.00
2019-03-31 8,519.00 5,807.00 4,086.00
2018-12-31 8,994.00 5,068.00 4,233.00
2018-09-30 10,516.00 5,067.00 5,113.00
2018-06-30 10,634.00 5,066.00 5,130.00
2018-03-31 10,642.00 4,078.00 4,079.00
2017-12-31 10,337.00 4,077.00 4,469.00
2017-09-30 10,988.00 3,583.00 3,444.00
2017-06-30 10,708.00 3,583.00 2,984.00
2017-03-31 10,639.00 3,358.00 3,049.00
2016-12-31 10,473.00 3,609.00 3,490.00
2016-09-30 10,286.00 3,611.00 3,137.00
2016-06-30 9,962.00 3,612.00 2,539.00
2016-03-31 9,782.00 4,118.00 2,800.00
2015-12-31 9,946.00 4,120.00 3,218.00
2015-09-30 9,970.00 4,132.00 2,735.00
2015-06-30 10,205.00 4,884.00 3,306.00
2015-03-31 10,369.00 4,638.00 3,304.00
2014-12-31 10,390.00 4,631.00 3,541.00
2014-09-30 10,471.00 4,645.00 3,186.00
2014-06-30 10,466.00 4,648.00 2,804.00
2014-03-31 10,620.00 5,652.00 4,032.00
2013-12-31 10,807.00 5,158.00 3,829.00
2013-09-30 11,051.00 5,161.00 3,593.00
2013-06-30 11,068.00 5,165.00 3,244.00
  • Texas Instruments's level of debt (65.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (44.6% vs 65.2% today).
  • Debt is well covered by operating cash flow (114.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 33.4x coverage).
X
Financial health checks
We assess Texas Instruments's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Texas Instruments has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TXN Dividends

 What is Texas Instruments's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.53%
Current annual income from Texas Instruments dividends. Estimated to be 3.63% next year.
If you bought $2,000 of Texas Instruments shares you are expected to receive $71 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Texas Instruments's pays a higher dividend yield than the bottom 25% of dividend payers in Chile (3.14%).
  • Texas Instruments's dividend is below the markets top 25% of dividend payers in Chile (7.01%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SNSE:TXN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
Global Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 414 Stocks 2.4%
Chile Market Average Dividend Yield Market Cap Weighted Average of 130 Stocks 5.4%
Chile Minimum Threshold Dividend Yield 10th Percentile 1.2%
Chile Bottom 25% Dividend Yield 25th Percentile 3.1%
Chile Top 25% Dividend Yield 75th Percentile 7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SNSE:TXN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 3.83 6.00
2021-12-31 3.79 16.00
2020-12-31 3.58 16.00
2020-03-31
SNSE:TXN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-16 3.600 3.073
2019-09-19 3.600 2.893
2019-07-18 3.080 2.482
2019-04-25 3.080 2.749
2019-01-17 3.080 2.862
2018-09-20 3.080 3.165
2018-07-19 2.480 2.234
2018-04-26 2.480 2.232
2018-01-18 2.480 2.341
2017-09-21 2.480 2.527
2017-07-19 2.000 2.437
2017-04-19 2.000 2.496
2017-01-19 2.000 2.552
2016-11-03 2.000 2.753
2016-10-26 2.000 2.856
2016-07-21 1.520 2.189
2016-04-20 1.520 2.513
2016-01-21 1.520 2.789
2015-09-17 1.520 2.824
2015-07-16 1.360 2.791
2015-04-16 1.360 2.523
2015-01-15 1.360 2.396
2014-09-19 1.360 2.699
2014-07-17 1.200 2.520
2014-04-16 1.200 2.549
2014-01-16 1.200 2.687
2013-09-19 1.200 2.868
2013-07-18 1.120 2.856
2013-02-21 1.120 3.149
2013-01-17 0.840 2.519
2012-09-20 0.840 2.846
2012-07-19 0.680 2.372
2012-04-18 0.680 2.346
2012-01-19 0.680 2.062
2011-09-15 0.680 2.301
2011-07-21 0.520 1.911
2011-04-20 0.520 1.559
2011-01-20 0.520 1.492
2010-09-16 0.520 1.708
2010-07-15 0.480 1.950
2010-04-14 0.480 1.917
2010-01-21 0.480 1.973
2009-09-17 0.480 1.951
2009-07-17 0.440 1.820
2009-04-15 0.440 2.278

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Texas Instruments's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • The company is expected to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not expected to be well covered.
X
Income/ dividend checks
We assess Texas Instruments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Texas Instruments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Texas Instruments has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TXN Management

 What is the CEO of Texas Instruments's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rich Templeton
COMPENSATION $18,633,807
AGE 60
TENURE AS CEO 1.7 years
CEO Bio

Mr. Richard K. Templeton, also known as Rich, serves as the Chief Executive Officer and President of Texas Instruments Inc. since July 17, 2018. Mr. Templeton joined Texas Instruments Inc. in 1980 in the Semiconductor Group's sales and marketing organization and served as its Chief Operating Officer from 2000 to April 2004, Executive Vice President and President of Semiconductor division since 1996 and Senior Vice President since 1994. Mr. Templeton served as the President of Texas Instruments Inc. from May 2004 to April 2013. He served as a Texas Instruments Inc.'s Vice President since 1991 and was promoted to manager of worldwide application specific products in 1993, with responsibility for a wide range of products including digital signal processors. He has been the Chairman of Texas Instruments Inc. since April 17, 2008. As a 37-year veteran of the semiconductor industry, serving the last 22 years at a senior level at the Texas Instruments Inc. He served as the Chairman of Semiconductor Industry Association. He has been an Executive Director of Texas Instruments Inc. since July 2003. He serves as a Director of Semiconductor Industry Association. He serves as a Director of Catalyst, Inc. He holds a Bachelors Degree in Electrical Engineering from Union College.

CEO Compensation
  • Rich's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Rich to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Texas Instruments management team in years:

3.9
Average Tenure
51
Average Age
  • The tenure for the Texas Instruments management team is about average.
Management Team

Rich Templeton

TITLE
Chairman
COMPENSATION
$19M
AGE
60
TENURE
1.7 yrs

Rafael Lizardi

TITLE
Senior VP of Finance & Operations
COMPENSATION
$5M
AGE
46
TENURE
3 yrs

Niels Anderskouv

TITLE
Senior Vice President of Analog Power Products
COMPENSATION
$6M
AGE
49
TENURE
3.2 yrs

Haviv Ilan

TITLE
Senior Vice President of Analog Signal Chain
COMPENSATION
$6M
AGE
50
TENURE
5.4 yrs

Ahmad R. S. Bahai

TITLE
Senior VP & CTO
AGE
56
TENURE
2.2 yrs

Ellen Barker

TITLE
Senior VP of IT Services & Chief Information Officer
AGE
56
TENURE
5.8 yrs

Dave Pahl

TITLE
Head of Investor Relations & VP
TENURE
5.6 yrs

Cynthia Trochu

TITLE
Senior VP
AGE
55
TENURE
4.6 yrs

Julie Van Haren

TITLE
Senior Vice President of Communications & Investor Relations
AGE
50
TENURE
3.2 yrs

Bing Xie

TITLE
Senior Vice President of Worldwide Sales & Applications
AGE
51
TENURE
5.2 yrs
Board of Directors Tenure

Average tenure and age of the Texas Instruments board of directors in years:

5.5
Average Tenure
59.5
Average Age
  • The tenure for the Texas Instruments board of directors is about average.
Board of Directors

Rich Templeton

TITLE
Chairman
COMPENSATION
$19M
AGE
60
TENURE
11.8 yrs

Pam Patsley

TITLE
Lead Director
COMPENSATION
$352K
AGE
62
TENURE
0.8 yrs

Mark Blinn

TITLE
Independent Director
COMPENSATION
$323K
AGE
57
TENURE
7 yrs

Ron Kirk

TITLE
Independent Director
COMPENSATION
$315K
AGE
65
TENURE
6.4 yrs

Carrie Cox

TITLE
Independent Director
COMPENSATION
$310K
AGE
61
TENURE
15.4 yrs

Robert Sanchez

TITLE
Independent Director
COMPENSATION
$305K
AGE
54
TENURE
9 yrs

Janet Clark

TITLE
Independent Director
COMPENSATION
$315K
AGE
64
TENURE
4.7 yrs

Jean Hobby

TITLE
Independent Director
COMPENSATION
$285K
AGE
58
TENURE
3.7 yrs

Todd Bluedorn

TITLE
Independent Director
COMPENSATION
$285K
AGE
55
TENURE
3 yrs

Martin Craighead

TITLE
Independent Director
COMPENSATION
$312K
AGE
59
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • Texas Instruments individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Feb 20 Sell Ahmad R. S. Bahai Individual 11. Feb 20 11. Feb 20 -1,806 $130.71 $-236,059
07. Feb 20 Sell Haviv Ilan Individual 05. Feb 20 05. Feb 20 -14,170 $129.88 $-1,840,424
04. Feb 20 Sell Amichai Ron Individual 31. Jan 20 31. Jan 20 -2,110 $121.27 $-255,869
04. Feb 20 Sell Bing Xie Individual 31. Jan 20 31. Jan 20 -7,958 $122.33 $-973,524
04. Feb 20 Sell R. Delagi Individual 31. Jan 20 31. Jan 20 -34,008 $123.36 $-4,195,227
04. Feb 20 Sell Haviv Ilan Individual 31. Jan 20 31. Jan 20 -9,447 $122.53 $-1,157,568
04. Feb 20 Sell Darla Whitaker Individual 31. Jan 20 31. Jan 20 -6,075 $122.49 $-744,118
04. Feb 20 Sell Kyle Flessner Individual 31. Jan 20 31. Jan 20 -9,447 $123.36 $-1,165,382
04. Feb 20 Sell Ellen Barker Individual 31. Jan 20 31. Jan 20 -4,015 $123.36 $-495,290
04. Feb 20 Sell Julie Van Haren Individual 31. Jan 20 31. Jan 20 -2,834 $123.36 $-349,602
04. Feb 20 Sell Cynthia Trochu Individual 31. Jan 20 31. Jan 20 -16,059 $123.36 $-1,981,038
04. Feb 20 Sell Niels Anderskouv Individual 31. Jan 20 31. Jan 20 -23,617 $123.36 $-2,913,393
04. Feb 20 Sell Hagop Kozanian Individual 31. Jan 20 03. Feb 20 -9,447 $122.61 $-1,144,349
04. Feb 20 Sell Ahmad R. S. Bahai Individual 04. Feb 20 04. Feb 20 -4,200 $125.91 $-528,809
19. Nov 19 Sell Ahmad R. S. Bahai Individual 15. Nov 19 15. Nov 19 -1,550 $117.99 $-182,881
01. Aug 19 Sell Cynthia Trochu Individual 31. Jul 19 31. Jul 19 -6,185 $128.22 $-793,062
29. Jul 19 Sell Bing Xie Individual 25. Jul 19 25. Jul 19 -26,133 $128.00 $-3,344,940
29. Jul 19 Sell Darla Whitaker Individual 25. Jul 19 25. Jul 19 -16,990 $127.66 $-2,169,020
29. Jul 19 Sell Ahmad R. S. Bahai Individual 25. Jul 19 25. Jul 19 -10,000 $127.11 $-1,271,100
06. May 19 Sell Haviv Ilan Individual 02. May 19 02. May 19 -12,659 $117.50 $-1,487,414
06. May 19 Sell Niels Anderskouv Individual 29. Apr 19 29. Apr 19 -56,166 $117.14 $-6,548,060
01. May 19 Sell Bing Xie Individual 29. Apr 19 29. Apr 19 -20,000 $116.75 $-2,335,032
X
Management checks
We assess Texas Instruments's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Texas Instruments has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TXN News

Simply Wall St News

TXN Company Info

Description

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery management solutions, portable components, power supply controls, point-of-load products, switches and interfaces, integrated protection devices, high-voltage products, and mobile lighting and display products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control for use in end markets, including amplifiers, data converters, interface products, motor drives, clocks, and sensing products.; and high volume products comprising integrated analog and standard products, which are primarily for sale into personal electronics, industrial, and automotive markets. The Embedded Processing segment offers connected microcontrollers, such as microcontrollers, microcontrollers with integrated wireless capabilities, and stand-alone wireless connectivity solutions that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, Personal electronics, communications equipment, enterprise systems, and calculators and other. The company also provides DLP products primarily for use in projectors to create high-definition images; calculators; and application-specific integrated circuits. Texas Instruments Incorporated markets and sells its semiconductor products through direct sales and distributors, as well as through its website. The company was founded in 1930 and is headquartered in Dallas, Texas.

Details
Name: Texas Instruments Incorporated
TXN
Exchange: SNSE
Founded: 1930
$95,254,592,873
933,685,482
Website: http://www.ti.com
Address: Texas Instruments Incorporated
12500 TI Boulevard,
Dallas,
Texas, 75243,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS TXN Common Stock Nasdaq Global Select US USD 02. Jan 1968
DB TII Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA TII Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
LSE 0R2H Common Stock London Stock Exchange GB USD 02. Jan 1968
SWX TXN Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
WBAG TXN Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE TXN Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BMV TXN * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
ETLX TXN-U Common Stock Eurotlx IT EUR 02. Jan 1968
BASE TXN CEDEAR EACH 5 REP 1 ORD USD1 Buenos Aires Stock Exchange AR ARS 13. Sep 2000
BOVESPA TEXA34 EACH BDR REPR 1 COM USD1 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2015
Number of employees
Current staff
Staff numbers
29,768
Texas Instruments employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 18:42
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.