Latest news with #TXN
Yahoo
29-05-2025
- Business
- Yahoo
Why the Market Dipped But Texas Instruments (TXN) Gained Today
In the latest market close, Texas Instruments (TXN) reached $184.15, with a +0.5% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq decreased by 0.51%. Heading into today, shares of the chipmaker had gained 13.98% over the past month, outpacing the Computer and Technology sector's gain of 11.21% and the S&P 500's gain of 7.37% in that time. The investment community will be closely monitoring the performance of Texas Instruments in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.32, reflecting an 8.2% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.31 billion, indicating a 12.75% upward movement from the same quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.55 per share and revenue of $17.29 billion, indicating changes of +6.73% and +10.57%, respectively, compared to the previous year. It is also important to note the recent changes to analyst estimates for Texas Instruments. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Texas Instruments is currently a Zacks Rank #3 (Hold). Looking at valuation, Texas Instruments is presently trading at a Forward P/E ratio of 33.03. This represents a premium compared to its industry's average Forward P/E of 32.71. We can also see that TXN currently has a PEG ratio of 2.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 2.18. The Semiconductor - General industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Are Texas Instruments Incorporated (NASDAQ:TXN) Investors Paying Above The Intrinsic Value?
The projected fair value for Texas Instruments is US$151 based on 2 Stage Free Cash Flow to Equity Texas Instruments is estimated to be 25% overvalued based on current share price of US$189 The US$179 analyst price target for TXN is 18% more than our estimate of fair value In this article we are going to estimate the intrinsic value of Texas Instruments Incorporated (NASDAQ:TXN) by taking the forecast future cash flows of the company and discounting them back to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$2.19b US$6.24b US$8.80b US$10.1b US$10.7b US$11.1b US$11.6b US$12.0b US$12.4b US$12.7b Growth Rate Estimate Source Analyst x10 Analyst x11 Analyst x5 Analyst x2 Analyst x1 Est @ 4.35% Est @ 3.87% Est @ 3.53% Est @ 3.30% Est @ 3.13% Present Value ($, Millions) Discounted @ 9.4% US$2.0k US$5.2k US$6.7k US$7.0k US$6.8k US$6.5k US$6.2k US$5.8k US$5.5k US$5.2k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$57b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$13b× (1 + 2.8%) ÷ (9.4%– 2.8%) = US$197b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$197b÷ ( 1 + 9.4%)10= US$80b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$137b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$189, the company appears slightly overvalued at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Texas Instruments as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.4%, which is based on a levered beta of 1.537. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Texas Instruments Strength Debt is well covered by earnings and cashflows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Semiconductor market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual revenue is forecast to grow faster than the American market. Threat Dividends are not covered by earnings and cashflows. Annual earnings are forecast to grow slower than the American market. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. What is the reason for the share price exceeding the intrinsic value? For Texas Instruments, there are three essential elements you should further examine: Risks: For instance, we've identified 2 warning signs for Texas Instruments (1 is a bit concerning) you should be aware of. Future Earnings: How does TXN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Pink Villa
19-05-2025
- Entertainment
- Pink Villa
Catch Me At The Ballpark! Episode 8: Aona Gets Interviewed; Recap, Release Date, Where To Stream And More
During a vocal warm-up meeting in 'The Pointless 99 Times,' most beer vendors consider the exercises useless. However, while working, Ruriko finds herself using every phrase from the session and comes to respect Manager Matsudo's earlier quote about persevering through failure. In the clubhouse, Ichinomiya feels overshadowed by Shishio but finds some comfort from cook Marie until Shishio unknowingly spoils the moment. Meanwhile, Ruriko and Murata share a conversation about high school. Later, it's revealed that Yamada was also featured in Weekly Baseball, although her name was misprinted. The open-air MotorSuns Stadium is famous for its sudden, strong wind gusts, impacting gameplay and beer vendors in Catch Me At The Ballpark! Episode 8. One such gust affects Ruriko and Murata while they're in the stands. In 'Marker,' Ruriko attends a game privately with Kokoro and Aona but, dressed differently than usual, goes unrecognized by staff and regulars—until she spots Murata. In 'Watch Out for Online News,' a shady journalist named Iijima sneaks backstage. Aona agrees to an interview, unaware of Iijima's pressure to write a profitable article. Titled 'All Because of the Wind,' Catch Me At The Ballpark! Episode 8 is scheduled to premiere on Wednesday, May 21, 2025, at 12:00 am JST. Japanese viewers can watch the baseball-themed anime on TV channels such as TV Tokyo (TXN) and AT-X. Catch Me At The Ballpark! Episode 8 will stream on platforms like ABEMA, Lemino, and Anime Times. For international fans, an English-subtitled version will be available on Crunchyroll. Please ensure you have an active subscription to access content on these streaming services. *The release dates and times provided are accurate at the time of writing and are subject to change at the discretion of the creators.
Yahoo
06-05-2025
- Business
- Yahoo
What Does Texas Instruments Incorporated's (NASDAQ:TXN) Share Price Indicate?
Texas Instruments Incorporated (NASDAQ:TXN) saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, could the stock still be trading at a relatively cheap price? Let's take a look at Texas Instruments's outlook and value based on the most recent financial data to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. What's The Opportunity In Texas Instruments? According to our valuation model, Texas Instruments seems to be fairly priced at around 7.75% above our intrinsic value, which means if you buy Texas Instruments today, you'd be paying a relatively fair price for it. And if you believe the company's true value is $150.74, then there isn't really any room for the share price grow beyond what it's currently trading. Furthermore, Texas Instruments's low beta implies that the stock is less volatile than the wider market. View our latest analysis for Texas Instruments What kind of growth will Texas Instruments generate? NasdaqGS:TXN Earnings and Revenue Growth May 6th 2025 Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by 55% over the next couple of years, the future seems bright for Texas Instruments. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. What This Means For You Are you a shareholder? It seems like the market has already priced in TXN's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping tabs on TXN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Yahoo
26-04-2025
- Business
- Yahoo
TXN Q1 Earnings Call: Industrial Recovery and Tariff Risks Shape Outlook
Analog chip manufacturer Texas Instruments (NASDAQ:TXN) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 11.1% year on year to $4.07 billion. The company expects next quarter's revenue to be around $4.35 billion, close to analysts' estimates. Its GAAP profit of $1.28 per share was 20.2% above analysts' consensus estimates. Is now the time to buy TXN? Find out in our full research report (it's free). Revenue: $4.07 billion vs analyst estimates of $3.91 billion (11.1% year-on-year growth, 4.1% beat) EPS (GAAP): $1.28 vs analyst estimates of $1.06 (20.2% beat) Adjusted EBITDA: $1.77 billion vs analyst estimates of $1.66 billion (43.5% margin, 6.2% beat) Revenue Guidance for Q2 CY2025 is $4.35 billion at the midpoint, roughly in line with what analysts were expecting EPS (GAAP) guidance for Q2 CY2025 is $1.34 at the midpoint, beating analyst estimates by 11.9% Operating Margin: 32.5%, down from 35.1% in the same quarter last year Free Cash Flow was -$274 million compared to -$231 million in the same quarter last year Inventory Days Outstanding: 243, in line with the previous quarter Market Capitalization: $148 billion Texas Instruments' first quarter results reflected improvement across key end markets, particularly in industrial and automotive. Management attributed the revenue growth to broad-based recovery, with CEO Haviv Ilan noting, 'We continue to see recovery across our end markets, with industrial showing broad recovery across sectors and geographies.' The company also highlighted that customer inventories are at low levels, which contributed to stronger ordering activity and sequential growth in both Analog and Embedded Processing segments. Looking ahead, management's guidance for the next quarter remains cautious due to ongoing global uncertainty, including tariffs and geopolitical risks affecting supply chains. Ilan emphasized the unpredictable environment, stating, 'We remain cautious as there are many things still changing, and we are working with our customers to understand and support their needs.' The company is preparing for multiple market scenarios and will continue to focus on dependable capacity and supply chain flexibility to address customers' evolving requirements. Management focused on the interplay between broad market recovery and ongoing uncertainty driven by tariffs and supply chain volatility. The quarter's performance benefited from industrial sector strength, while the company's operational flexibility was highlighted as a core advantage. Industrial Market Recovery: Industrial end markets showed broad-based sequential and year-over-year growth, ending a seven-quarter decline. Management described customer orders as reflecting genuinely improved demand rather than one-off or anxious purchasing. Low Customer Inventories: Executives noted that customers across all end markets are running lean on inventory, increasing the likelihood of replenishment orders and contributing to recent revenue gains. Tariff and Geopolitical Impact: Management discussed the challenges posed by new tariffs and evolving trade policies, emphasizing the need for "geopolitically dependable capacity" and the company's ability to shift manufacturing and logistics to support customers globally. Operational Flexibility: Texas Instruments outlined its manufacturing footprint, including dual-sourcing capabilities and rapid logistics adaptation, as a key factor in maintaining customer support despite changing external conditions. Competitive Dynamics in China: Leadership acknowledged intensifying competition from Chinese firms, particularly in complex, application-specific analog products, but asserted that Texas Instruments' portfolio breadth and supply chain dependability remain differentiators. Management's outlook for the coming quarters centers on ongoing industrial recovery, the company's flexible manufacturing approach, and the risks posed by tariffs and global supply chain shifts. Continued Industrial Demand: The industrial segment is expected to remain a growth driver as customers maintain low inventories and replenish stock, but management cautions that this trend could shift if economic anxiety increases. Tariff and Supply Chain Uncertainty: New and potential tariffs create risks for both revenue predictability and cost structure. The company's ability to shift production and logistics is positioned as a partial mitigation, but management acknowledges that further changes are possible. Competitive Pressures: Intensifying competition in China, especially from local analog chipmakers, represents an ongoing risk. Management believes Texas Instruments' diverse product offering and manufacturing scale will help defend its market share, but the landscape remains dynamic. Timothy Arcuri (UBS): Asked about the impact of tariffs and whether recent order strength reflected pull-ins. CEO Haviv Ilan clarified that industrial growth appeared consistent and broad-based, not a result of anxious buying ahead of tariffs. Vivek Arya (Bank of America Securities): Queried inventory trends and gross margin direction. CFO Rafael Lizardi said gross margin outperformed expectations due to higher revenue and a greater mix of industrial sales, with factory loadings expected to increase modestly next quarter. Stacy Rasgon (Bernstein Research): Sought clarification on whether customers were pulling forward orders in anticipation of tariffs. Ilan responded that the data pointed to a normal cycle recovery, with no signs of panic ordering. Tore Svanberg (Stifel): Asked about regional disparities in demand due to tariff differences. Ilan explained that Texas Instruments is working closely with customers to optimize manufacturing flows and logistics, leveraging its global footprint. William Stein (Truist Securities): Inquired about growth drivers between pricing and volume, and the competitive environment in China. Ilan stated growth was primarily volume-driven and acknowledged that Chinese competitors are becoming more capable, especially in application-specific areas. In upcoming quarters, the StockStory team will monitor (1) the pace and durability of industrial market recovery and any signs of changing customer inventory strategies, (2) Texas Instruments' execution on shifting manufacturing and logistics to mitigate tariff and supply chain risks, and (3) the impact of intensifying competition in China on both revenue mix and pricing. We are also attentive to how ongoing investments in manufacturing flexibility and product breadth contribute to long-term free cash flow growth. Texas Instruments currently trades at a forward P/E ratio of 28.3×. Should you load up, cash out, or stay put? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
