TXN Analysis — TradeApes

TEXAS INSTRUMENTS INC (TXN)

Technology

$213.54 close · Apr 09, 2026

↑ Overvalued (12/100)

Health Score

Out of 100

Healthy

Pillar Scores

Financial Strength 55

Operating Trend 78

Valuation 40

Capital Allocation 65

Risk 80

Positives

↑ Strong revenue growth — sales up more than 20% year over year +3.8

↑ Active buybacks — share count declining, capital returned to owners +2.3

↑ High gross margin — above 50%, indicating strong pricing power +2.0

Concerns

↓ High P/E — 25–45×, growth premium already priced in -2.5

Signal contribution: +10.7 from strengths -2.5 from concerns

Only one snapshot so far — trend builds after the next filing sync.

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	17.68B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	10.08B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	6.02B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	5.00B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	2.60B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	7.94B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	14.05B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	3.23B

Valuation

Market Cap	194.96B
Enterprise Value	205.79B
EV / Revenue	11.6x
EV / EBITDA	25.9x
P/E (TTM)	39.0x
Forward P/E (extrapolated)	21.0x
PEG	0.1x
P/FCF	74.9x
FCF Yield	1.3%

DCF Fair Value Range (base CAGR: -2.0%)

Bear

$34.89

Base

$30.93

Bull

$29.05

Bear $35 Current $213.54 (above range) Bull $29

Market is pricing in 29.2% FCF growth annually — base model assumes -2.0%

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	54.2%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	—
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	22.0%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	—
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	42.3%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	195.8%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	6 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	4.59

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Quarterly Financials

Metric	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '24	Q2 '24	Q1 '24
Revenue ?Total quarterly sales from primary business operations.	4.42B	4.74B	4.45B	4.07B	4.01B	4.15B	3.82B	3.66B	4.08B	4.53B	4.53B	4.38B
Gross Profit ?Quarterly revenue minus cost of goods sold.	2.47B	2.72B	2.58B	2.31B	2.31B	2.47B	2.21B	2.10B	2.43B	2.82B	2.91B	2.86B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	1.47B	1.66B	1.56B	1.32B	1.38B	1.55B	1.25B	1.29B	1.53B	1.89B	1.97B	1.93B
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	1.16B	1.36B	1.30B	1.18B	1.21B	1.36B	1.13B	1.11B	1.37B	1.71B	1.72B	1.71B
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	2.88B	—	—	-274.0M	1.73B	—	—	-231.0M	1.17B	—	—	178.0M

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.