Debt is smaller than equity and it can meet short-term obligations.
Metrics · D/E ~78% · Current Ratio 4.86
💲Is the price expensive now?
On the expensive side
Even accounting for growth expectations, the price is set high.
Metrics · P/E 42.5
💡Analog-chip leader at 38.0% operating margin and 35.2% ROE. The 42.5x P/E looks high only because fab investment has earnings at a cycle trough.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: stockanalysis (margins and ROE are TTM) · P/E recomputed on the July 24 close · earnings currently at a CapEx/cycle trough, as of 2026-07-24
Business Summary · Key Value Metrics
A leader in analog and embedded chips. It makes over 100,000 analog parts (power management, signal processing) in its own 300mm fabs and sells them to 100,000 customers across industrial and automotive. Long product lives and low unit prices make customers slow to switch. TTM revenue $19.45B, operating margin 38.0%, ROE 35.2%.
Current Price
$279.58
-1.9%-$5.41· Close 2026-07-24
Analyst Consensus Target (external reference)
$320.03
Avg. of 36 external analysts · stockanalysis (S&P Global 36-analyst consensus, Buy · high $400 / low $225)
P/E (TTM)
42.5x
TTM · high P/E on trough earnings
Operating margin
38.0%
TTM · best of the analog three
ROE
35.2%
TTM
Net margin
30.9%
TTM
Dividend yield
2.03%
22 straight years of increases
Market cap
$255.3B
as of 2026-07-24
Economic Moat · Key Business Segments
TXN's moat is a 300mm wafer cost edge tuned for analog chips. Analog needs no leading-edge process, so depreciated large-diameter in-house fabs beat rivals (200mm, fabless) on cost per chip. Selling 100,000-plus parts to 100,000 customers removes single-customer or single-market dependence, and 7-10 year product lives make revenue sticky. TXN has historically gained share through downcycles thanks to that low-cost base (Source: company IR, stockanalysis).
300mm cost edge
Analog needs no cutting-edge node; depreciated large-diameter fabs dominate on cost per chip.
100k parts, long tail
100,000+ products, 100,000 customers. No single-customer or single-market dependence.
Long lives, switching cost
Designed in for 7-10 years. At low unit prices, customers rarely re-qualify.
Dividend aristocrat
22 straight years of increases, investment-grade. Exits each downcycle with more share.
10-Year Financial Trends
Revenue's 9-year CAGR of +3.1% understates true earning power because the endpoint (2025) is a cycle trough (far higher off the 2022 peak). 2017 net income ($3,682M, EPS $3.61) was depressed by a $2,398M TCJA transition tax, against a +25% operating income. Operating margin fell from a 50.6% peak (2022) to 34.1% (2025) as new 300mm fab depreciation ran ahead of utilization — margins are low because fabs aren't yet fully loaded, not because demand is weak. Revenue rebounded to TTM $19.45B (+16.7%) in 2026, and free cash flow is turning as CapEx guidance drops 34-56% to $2-3B.
9-Year CAGR: Revenue +3.1% · Operating Income +2.4% · Net Income +3.7% · EPS +5.1%
Source: SEC EDGAR 10-K (revenue, operating income, net income, diluted EPS, equity); fiscal year-end closes from Yahoo Finance; cross-checked against stockanalysis. P/E is year-end close ÷ diluted EPS and matches stockanalysis to the decimal for 2021-2025. 2017 EPS was depressed by a $2,398M TCJA transition tax. The low revenue CAGR reflects 2025 being a semiconductor-cycle trough, and the margin decline reflects new 300mm fab depreciation running ahead of utilization.
Mega-Cap Value Metric Comparison
TXN's 38.0% operating margin beats analog peers Analog Devices (32.9%) and NXP (27.0%), thanks to its in-house 300mm cost edge. Its 42.5x P/E is below ADI (55.1) and above NXP (25.8); all three sit on trough-cycle earnings, so valuation comparisons should use normalized earnings. TXN's 35.2% ROE is elevated by buybacks (Source: stockanalysis, company IR).
High P/E on trough earnings— The 42.5x P/E looks high because operating margin fell from 50.6% (2022) to the mid-30s at a cycle trough. On normalized earnings it is cheaper, but a slow recovery keeps the valuation heavy.Source: company 10-K, stockanalysis
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FCF pressure from heavy fab investment— Dividends exceeded free cash flow for three straight years (2023-2025) and long-term debt rose from $3.0B to $13.5B. It reflects a deliberate 6-year fab build, reversing in 2026 as CapEx drops 34-56%, but a downturn before recovery could renew the pressure.Source: SEC EDGAR 10-K, company IR
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China competition and tariffs— Domestic Chinese analog makers could erode long-term share in the low-to-mid range. That said, TXN pushed through price increases in the 2026 upcycle, keeping current pricing power intact.Source: company 10-K, industry reports
✦ ValueCrab Dashboard PreviewTXN $279.58 -1.9% · as of 2026-07-24
Q. What are the key value metrics for Texas Instruments (TXN)?P/E (TTM) 42.5, operating margin 38.0%, ROE 35.2%, net margin 30.9%, dividend yield 2.03%, with 22 straight years of dividend increases (Source: stockanalysis, SEC EDGAR, as of 2026-07-24).
Q. Isn't a 42x P/E too expensive?Current earnings sit at a cycle trough. Operating margin fell from 50.6% (2022) to the mid-30s because new fab depreciation is booked before utilization ramps, so the denominator is low. The high P/E reflects trough earnings, not peak earnings — it normalizes as utilization rises.
Q. Semis are cyclical — why a crash-buy candidate?TXN's 300mm in-house cost edge lets it gain share through downcycles. With 100,000 parts and 100,000 customers it has no single-market dependence, and it has raised its dividend for 22 straight years. Revenue and earnings still fall in a crash — which is exactly when you accumulate the low-cost operator.
Q. Dividends exceed free cash flow — is that risky?Dividends topped FCF in 2023-2025 because of a 6-year fab build. It is deliberate and temporary — 2026 CapEx drops 34-56% and FCF is rebounding +154%. It's an investment trough, not structural distress, though a downturn before recovery could pressure dividend growth.