TXN Texas Instruments Inc

Texas Instruments designs and manufactures analog and embedded processing semiconductors for industrial, automotive, personal electronics, and communications markets. Sector: Technology.

Texas Instruments Inc (TXN) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

On the question of capital productivity, ROIC is 21.61%, WACC is 11.54%, and the economic spread is 10.07%. On balance, the economic spread is positive and meaningful, suggesting the company are building rather than eroding intrinsic value. Supporting metrics show ROE at 32.44% and ROA at 13.85%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

From a market pricing perspective, trailing P/E of 51.57, forward P/E of 37.80, PEG of 1.74. The trailing-forward gap is pronounced, pointing to a company where near-term earnings estimates are running materially ahead of reported earnings. On a growth-adjusted basis, valuation appears reasonable relative to expected growth. The company carries a current ratio of 4.46, pointing to strong short-term financial health. The overall valuation picture is one where the market is paying for a specific earnings and growth outcome — and where any deviation from that path would likely pressure multiples.

The margin stack reads as follows: gross margin sits at 57.32%, operating margin at 35.99%, and free cash flow margin at 20.18%. The gross margin reading points to the company with solid but not outsized pricing power relative to direct costs. At this level, operating margins reflect businesses with genuine scalability and above-average cost control. FCF margins are constructive here, reflecting the company that generate cash reliably after reinvestment requirements. Viewed together, these readings indicate a company that converts revenue into both earnings and cash with discipline.

Where growth and expectations intersect, the estimated 12-month price change of 5.96%, where analyst estimates suggest only incremental upside absent a positive surprise, while TTM revenue growth of 18.58% suggesting the company is growing revenues at a measured, sustainable pace. The projected 12-month EPS growth rate of 36.4% is a standout component of the forward case — meaningful earnings expansion at this scale typically warrants attention from growth-oriented investors. Both signals are useful lenses, but they tend to diverge most sharply near inflection points in both business fundamentals and market sentiment. The durability of both the operating trend and analyst optimism will determine whether the current setup translates into measurable near-term returns. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The overall evidence base is constructive, with more signals pointing up than down and no obvious structural impairment to the forward case.

This assessment is based solely on the quantitative metrics presented above and does not constitute financial advice. Investors should consider their own risk tolerance and conduct independent research before making investment decisions.