Texas Instruments is a global semiconductor design and manufacturing company that develops analog ICs and embedded processors. The company was founded in 1930 and is based in Dallas, Texas.
TXN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TXN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Texas Instruments Inc ranked in the 26th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Texas Instruments Inc, consider:
The company has produced more trailing twelve month cash flow than 93.88% of its sector Technology.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately only 15.44% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
TXN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 44.59% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TXN, try DSGX, SVMK, CYBR, EVTC, and FLIR.
Last year was a tale of two halves for dividend equities. Owing to the novel coronavirus pandemic, the first half of 2020 was chock full of payout cuts and suspensions by S&P 500 member firms, but dividends rebounded mightily in the second half of the year, indicating that many of the top stocks for 2021 are dividend payers. The fourth-quarter trajectory of S&P 500 payouts indicates that the darkest clouds of the coronavirus cuts have passed. And dividend investors could be in for better things this year. “Indicated dividend net changes (increases less decreases) for U.S. domestic common stocks increased $9.5 billion during Q4 2020, compared to a decline of $2.3 billion in Q3 2020, and a gain of $10.6 billion in Q4 2019,” noted the S&P Dow Jones Indices. “For Q4 2020, aggregate increase...
Texas Instruments (TXN) has been a very successful investment in recent years. Despite the COVID-19 crash, those who invested in the company five years ago are now enjoying a return of 265 percent, which is mainly made up of capital gains, but also dividends. A dividend yield of over 2...
Another work week, another edition of Transmission. Here's what I got cookin' for you today: Chip shortage adding to already low inventory volumes A changing landscape: the rise of consumer tech giants among traditional automakers Industry News Est. read: 4 minutes Chip shortage adding to already low inventory volumes In the beginning of December, Volkswagen brought to light what was viewed at the time as a minor chip shortage. VW predicted that the shortage would run into Q1 of 2021. Chinese carmaker BYD brushed off the chip concern , saying that companies had enough margin for external supply. Fast forward to the second week of the new year and that problem has grown, affecting OEMs everywhere, not just Volkswagen. Semiconductor chips are used throughout both ICE vehicles and EVs, spe...
DALLAS , Jan. 7, 2021 /PRNewswire/ -- Texas Instruments (TI) (NASDAQ: TXN ) today released a major advancement in electric vehicle (EV) battery management systems (BMS) – the industry's highest-performing solution for wireless BMS, featuring the first independently assessed functional safety concept. Through an advanced wireless protocol with the industry's best network availability, TI's wireless BMS solution demonstrates how vehicle designers can remove heavy, expensive, maintenance-prone cabling and improve the reliability and efficiency of EVs worldwide. TI's solution for wireless BMS empowers automakers to reduce the complexity of their designs, improve reliability and reduce vehicle weight to extend driving range. With the flexibility to scale designs across production models, aut...
DALLAS , Jan. 7, 2021 /PRNewswire/ -- Texas Instruments (TI) (NASDAQ: TXN ) today introduced a new automotive battery monitor and balancer that reports high-accuracy voltage measurements in systems up to 800 V. In addition, the BQ79616-Q1 streamlines Automotive Safety Integrity Level (ASIL) D compliance in hybrid electric vehicles (HEVs) and electric vehicles (EVs). For more information, see www.ti.com/BQ79616-Q1-pr . Filtering system-level noise to accurately measure battery-cell voltage and temperature and reliably reporting this information to the microcontroller (MCU) are key design challenges for automotive manufacturers. The BQ79616-Q1 addresses both of these challenges to help engineers achieve battery safety goals and maximize distance per charge in wired and wireless battery ma...