Texas Instruments (TXN)
Technology · NASDAQ · US
Fundamentals
Valuation and ratings
Texas Instruments trades at $291.22, which is 31% above the $200.00 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 80 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 53.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Texas Instruments
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, the rest of Asia, Europe, the Middle East, Africa, Japan, and internationally. It operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, multiphase controllers and power stages, and lighting products. This segment also provides signal chain products that sense, condition, and measure real-world signals and convert them into data to be transferred or converted for further processing and control, such as amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers, processors, wireless connectivity, and radar products; and applications processors for specific computing activity. It also provides DLP products primarily for use in projecting high-definition images; calculators; and application-specific integrated circuits. Its products are used in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, calculators, and others. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.
TXN passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
28 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Capital Research Global, Capital Research Global Investors$1.73B · 0.3% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$833.32M · 0.5% of book
- First Eagle, First Eagle Investment Management, LLC$713.32M · 1.2% of book
- Christopher Davis, DAVIS SELECTED ADVISERS$553.24M · 2.5% of book
- David Greenspan, Slate Path Capital LP$518.40M · 7.7% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Texas Instruments (TXN) undervalued?
Against our discounted cash flow estimate of $200.00, TXN at $291.22 is 31% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own TXN?
28 of the institutions we track reported a position in TXN in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is TXN's P/E ratio?
TXN trades at 53.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for TXN, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.