Texas Instruments Incorporated [NASDAQ:TXN]: Analyst Rating and Earnings
Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to Texas Instruments Incorporated [TXN], the most recently available average analyst rating is from the quarter that ends in December. On average, stock market experts give TXN an Outperform rating. Its stock price has been found in the range of 87.70 to 118.48. This is compared to its latest closing price of $107.10.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Texas Instruments Incorporated [TXN] is sitting at 2.50. This is compared to 1 month ago, when its average rating was 2.43.
For the quarter ending in Dec-18 Texas Instruments Incorporated [TXN] generated $3.72 billion in sales. That’s 0.70% lower than the average estimate of $3.74 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Tue 23 Apr (In 39 Days).
Fundamental Analysis of Texas Instruments Incorporated [TXN]
Now let’s turn to look at profitability: with a current Operating Margin for Texas Instruments Incorporated [TXN] sitting at +42.55 and its Gross Margin at +63.10, this company’s Net Margin is now 35.10%. These measurements indicate that Texas Instruments Incorporated [TXN] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 47.17, and its Return on Invested Capital has reached 39.60%. Its Return on Equity is 57.29, and its Return on Assets is 31.84. These metrics all suggest that Texas Instruments Incorporated is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Texas Instruments Incorporated [TXN] has generated a Total Debt to Total Equity ratio of 56.35. Similarly, its Total Debt to Total Capital is 36.04, while its Total Debt to Total Assets stands at 29.57. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 48.02, and its Long-Term Debt to Total Capital is 30.71. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 12.94 and its Total Debt to EBITDA Value is 0.66. The Enterprise Value to Sales for this firm is now 6.29, and its Total Debt to Enterprise Value stands at 0.05. Texas Instruments Incorporated [TXN] has a Price to Book Ratio of 9.93, a Price to Cash Flow Ratio of 13.01 and P/E Ratio of 19.69. These metrics all suggest that Texas Instruments Incorporated is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Texas Instruments Incorporated [TXN] earns $528,105 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 12.70 and its Total Asset Turnover is 0.91. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.38 and its Current Ratio is 3.27. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Texas Instruments Incorporated [TXN] has 939.29M shares outstanding, amounting to a total market cap of $100.60B. Its stock price has been found in the range of 87.70 to 118.48. At its current price, it has moved by -6.96% from its 52-week high, and it has moved 25.69% from its 52-week low.
This stock’s Beta value is currently 1.16, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 66.40. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Texas Instruments Incorporated [TXN] a Reliable Buy?
Shares of Texas Instruments Incorporated [TXN], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.