Yahoo Finance Looking At Texas Instruments Incorporated (NASDAQ:TXN) From All Angles
Texas Instruments Incorporated (NASDAQ:TXN) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TXN, it is a financially-robust , dividend-paying company with a a great track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Texas Instruments here.
Solid track record established dividend payer
Over the past few years, TXN has demonstrated a proven ability to generate robust returns of 41% Unsurprisingly, TXN surpassed the Semiconductor industry return of 13%, which gives us more confidence of the company’s capacity to drive earnings going forward. TXN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that TXN manages its cash and cost levels well, which is a key determinant of the company’s health. TXN’s has produced operating cash levels of 1.3x total debt over the past year, which implies that TXN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that TXN is a great dividend company, with a current yield standing at 3.0%. TXN has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Texas Instruments, there are three essential factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for TXN’s future growth? Take a look at our free research report of analyst consensus for TXN’s outlook.
Valuation: What is TXN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TXN is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TXN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
