Texas Instruments Gross Profit vs. Current Valuation

TXN Stock  USD 196.65  0.58  0.29%   
Based on Texas Instruments' profitability indicators, Texas Instruments Incorporated is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Texas Instruments' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1985-09-30
Previous Quarter
2.2 B
Current Value
2.5 B
Quarterly Volatility
758.6 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Texas Instruments' Price To Sales Ratio is very stable compared to the past year. As of the 4th of December 2024, Days Sales Outstanding is likely to grow to 50.68, while Operating Cash Flow Sales Ratio is likely to drop 0.20. At this time, Texas Instruments' Net Income Per Share is very stable compared to the past year. As of the 4th of December 2024, Income Quality is likely to grow to 1.04, while Accumulated Other Comprehensive Income is likely to drop (215.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.360.629
Way Down
Slightly volatile
For Texas Instruments profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Texas Instruments to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Texas Instruments Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Texas Instruments's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Texas Instruments Incorporated over time as well as its relative position and ranking within its peers.
  

Texas Instruments' Revenue Breakdown by Earning Segment

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Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Texas Instruments. If investors know Texas will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Texas Instruments listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.21)
Dividend Share
5.2
Earnings Share
5.39
Revenue Per Share
17.246
Quarterly Revenue Growth
(0.08)
The market value of Texas Instruments is measured differently than its book value, which is the value of Texas that is recorded on the company's balance sheet. Investors also form their own opinion of Texas Instruments' value that differs from its market value or its book value, called intrinsic value, which is Texas Instruments' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Texas Instruments' market value can be influenced by many factors that don't directly affect Texas Instruments' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Texas Instruments' value and its price as these two are different measures arrived at by different means. Investors typically determine if Texas Instruments is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Texas Instruments' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Texas Instruments Current Valuation vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Texas Instruments's current stock value. Our valuation model uses many indicators to compare Texas Instruments value to that of its competitors to determine the firm's financial worth.
Texas Instruments Incorporated is rated fourth in gross profit category among its peers. It is rated third in current valuation category among its peers reporting about  13.79  of Current Valuation per Gross Profit. At this time, Texas Instruments' Gross Profit is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Texas Instruments' earnings, one of the primary drivers of an investment's value.

Texas Instruments' Earnings Breakdown by Geography

Texas Current Valuation vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Texas Instruments

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
13.77 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Texas Instruments

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
189.89 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Texas Current Valuation vs Competition

Texas Instruments Incorporated is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is at this time estimated at about 2.07 Trillion. Texas Instruments holds roughly 189.89 Billion in current valuation claiming about 9% of equities under Information Technology industry.

Texas Instruments Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Texas Instruments, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Texas Instruments will eventually generate negative long term returns. The profitability progress is the general direction of Texas Instruments' change in net profit over the period of time. It can combine multiple indicators of Texas Instruments, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-205 M-215.2 M
Operating Income7.3 B7.7 B
Income Before Tax7.4 B7.8 B
Total Other Income Expense Net87 M91.3 M
Net Income6.5 B6.8 B
Income Tax Expense908 M652.4 M
Net Income Applicable To Common Shares10.1 B10.6 B
Net Income From Continuing Ops7.1 B4.7 B
Non Operating Income Net Other121.9 M102.6 M
Interest Income195.5 M103.6 M
Net Interest Income-353 M-335.4 M
Change To Netincome109.2 M178.9 M
Net Income Per Share 7.17  7.53 
Income Quality 0.99  1.04 
Net Income Per E B T 0.88  0.62 

Texas Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Texas Instruments. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Texas Instruments position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Texas Instruments' important profitability drivers and their relationship over time.

Use Texas Instruments in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Texas Instruments position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Texas Instruments will appreciate offsetting losses from the drop in the long position's value.

Texas Instruments Pair Trading

Texas Instruments Incorporated Pair Trading Analysis

The ability to find closely correlated positions to Texas Instruments could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Texas Instruments when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Texas Instruments - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Texas Instruments Incorporated to buy it.
The correlation of Texas Instruments is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Texas Instruments moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Texas Instruments moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Texas Instruments can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Texas Instruments position

In addition to having Texas Instruments in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Books
Books Theme
Companies involved in publishing of books, newspapers, periodicals and other mass publications. The Books theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Books Theme or any other thematic opportunities.
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When determining whether Texas Instruments offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Texas Instruments' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Texas Instruments Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Texas Instruments Incorporated Stock:
To fully project Texas Instruments' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Texas Instruments at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Texas Instruments' income statement, its balance sheet, and the statement of cash flows.
Potential Texas Instruments investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Texas Instruments investors may work on each financial statement separately, they are all related. The changes in Texas Instruments's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Texas Instruments's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.