What is the AI rating for TXN?

TEXAS INSTRUMENTS INC (TXN) has an AI rating of STRONG BUY with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are the key strengths of TXN?

Outstanding profitability with 28.3% net margin and 34.1% operating margin, well above semiconductor sector averages. Strong cash generation with 7.2B operating cash flow and 14.7% FCF margin, demonstrating quality of earnings. Excellent returns on capital with 30.7% ROE and 14.5% ROA, indicating efficient asset utilization

What are the risks of investing in TXN?

High long-term debt of 14.0B relative to equity (16.3B), limiting financial flexibility if business deteriorates. Capital intensity with 4.5B capex (25.4% of operating cash flow) required to maintain competitive position in semiconductor industry. Semiconductor sector cyclicality and inventory correction risks that could impact future revenue growth

TXN Stock Analysis - TEXAS INSTRUMENTS INC AI Rating & Fundamentals

Name: TEXAS INSTRUMENTS INC (TXN) Stock
Brand: TEXAS INSTRUMENTS INC
Rating: 5 (1 reviews)

Investment Thesis

Texas Instruments demonstrates exceptional fundamental strength with industry-leading profitability margins (57% gross, 34% operating, 28% net) and robust cash generation (7.2B operating CF, 2.6B FCF). The company maintains fortress-like financial health with strong liquidity (4.35x current ratio), moderate leverage (0.86x debt/equity), and consistent revenue growth (+13% YoY) coupled with improving earnings (+4.8% EPS growth), indicating sustainable operational excellence.

TXN Strengths

+ Outstanding profitability with 28.3% net margin and 34.1% operating margin, well above semiconductor sector averages
+ Strong cash generation with 7.2B operating cash flow and 14.7% FCF margin, demonstrating quality of earnings
+ Excellent returns on capital with 30.7% ROE and 14.5% ROA, indicating efficient asset utilization
+ Healthy balance sheet with 4.35x current ratio, 2.83x quick ratio, and manageable 0.86x debt/equity ratio
+ Consistent growth momentum with 13% revenue growth and 4.8% EPS growth despite macro headwinds

TXN Risks

! High long-term debt of 14.0B relative to equity (16.3B), limiting financial flexibility if business deteriorates
! Capital intensity with 4.5B capex (25.4% of operating cash flow) required to maintain competitive position in semiconductor industry
! Semiconductor sector cyclicality and inventory correction risks that could impact future revenue growth
! Significant insider trading activity (32 Form 4 filings in 90 days) warrants monitoring for sentiment signals

Key Metrics to Watch

* Operating cash flow trend and free cash flow sustainability above 2.5B threshold
* Gross margin maintenance at 57%+ level as indicator of pricing power and operational efficiency
* Revenue growth deceleration or acceleration relative to 13% baseline in coming quarters
* Debt/equity ratio trend and management's capital allocation priorities
* Capital expenditure requirements relative to revenue growth to assess margin expansion potential

TXN Financial Metrics

Revenue

$17.7B

Net Income

$5.0B

EPS (Diluted)

$5.45

Free Cash Flow

$2.6B

Total Assets

$34.6B

Cash Position

$3.2B

TXN Profitability Ratios

Gross Margin 57.0%

Operating Margin 34.1%

Net Margin 28.3%

ROE 30.7%

ROA 14.5%

FCF Margin 14.7%

TXN Balance Sheet & Liquidity

Current Ratio

4.35x

Quick Ratio

2.83x

Debt/Equity

0.86x

Debt/Assets

52.9%

Interest Coverage

N/A

Long-term Debt

$14.0B

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.

Data Source: SEC EDGAR | Analysis Date: Mar 18, 2026 | Data as of: 2025-12-31 | Powered by Claude AI