Texas Instruments Inc (TXN) stock analysis
Texas Instruments Inc (TXN) clears 2 of this site's 8 mechanical value filters, 4 of 8 Buffett-style checks and 1 of 5 Lynch-style checks. At $279.50 it trades 181.5% above this site's neutral DCF value (a margin of safety of -181.5%). Its earnings quality rates Strong and it returns +2.4% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Texas Instruments do?
Texas Instruments makes analog chips, which manage power and convert real-world signals, and embedded processors used in industrial equipment, cars and electronics. It runs its own factories and sells to a very broad customer base.
What stands out about Texas Instruments?
- The share price implies 35.1% yearly growth. At $279.50, TXN's free cash flow of $5.81 per share would have to grow 35.1% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 4 of the 8 value filters. It fails Trailing P/E < 25 (42.53), PEG Ratio < 1.5 (1.53) and Price/Book < 8 (14.30) and 1 more; the other 2 pass and 2 were not evaluated. See every filter.
- The margin of safety is rising. It went from -196% on Oct 7 to -182% on Oct 23 across 5 weekly readings. See the trend.
- Strongest against peers: dividend yield. At 1.99% (peer median 0.66%) it ranks 5th of 16 among semiconductors stocks this site tracks. See the ranking.
- Weakest against peers: debt / equity. At 0.78 (peer median 0.29) it ranks 17th of 20 among semiconductors stocks this site tracks. See the ranking.
How has Texas Instruments' share price moved?
The interactive price chart needs JavaScript.
Is Texas Instruments undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -181.5%
- P/E vs. its own history 42.5x · at/above its priciest point Real range: 17.5x–35.9x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 3.62/5 40 analysts this month: 7 strong buy, 15 buy, 15 hold, 2 sell, 1 strong sell (Finnhub). Up from 3.56 last month.
- Altman Z″-Score (bankruptcy risk) 9.04 · Safe zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.66 · accruals −6.1% of assets · 122% of profit arrived as cash · stock comp 2.4% of revenue · share count −0.2% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +2.4% net Latest fiscal year (2025): dividends 1.9% + buybacks 0.6% − stock comp 0.2%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 22%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $26.00 per $1 of new profit · Capital-hungry Operating profit $5.9B → $6.3B, capital needed $10B → $21B, 2016–2025 (3-year averages); return on capital now 31% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. Cyclical: the answer depends on where in its cycle the window starts and ends. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 1.53 · Above fair P/E 42.5× ÷ 27.9% a year of growth behind it. 171st lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 2 of 4 · misses capital-light, price Capital-light growth: not cleared (profit grew 1.1×, under 2×); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): not cleared (PEG 1.53, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 3 flags
- Standing vs. sector peers 3 of 7 measures above the median Compared with the 19 other semiconductors stocks this site tracks: 2 in the top third, 1 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Texas Instruments compare with its peers?
3 of 7 measures sit above the median of the 19 other semiconductors stocks tracked here, 2 in the top third and 1 in the bottom third.
- P/E ratiolower is cheaper · peer median 42.5× 42.5× –10th of 19
- Free-cash-flow yieldhigher is cheaper · peer median 2.5% 2.1% –12th of 20
- Return on equityhigher is better · peer median 25% 36% –9th of 20
- Net marginhigher is better · peer median 26.9% 31.1% ✓7th of 20
- Revenue growthhigher is better, year on year · peer median 23.8% 16.7% –12th of 19
- Debt / equitylower is safer · peer median 0.29 0.78 ✕17th of 20
- Dividend yieldamong dividend payers · peer median 0.66% 1.99% ✓5th of 16
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and TXN doesn't clear enough of it yet. In its favor: TXN is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, converts sales into profit at healthy margins, and earns many times its interest expense, so debt service isn't a worry. Where it comes up short: TXN carries more debt relative to equity than he typically tolerates, hasn't grown earnings per share fast enough over five years to impress him, is trading above what a conservative discounted-cash-flow estimate says it's worth right now, and trades rich relative to owner earnings, the real cash the business could pay out.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✕
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and TXN falls short of his bar. In its favor: TXN is growing earnings 20-50% a year, his classic fast-grower zone. Where it comes up short: TXN doesn't clear the tighter PEG bar a fast grower needs to justify its pace, is leaning on more debt than he liked a growth story to carry, is priced above what he'd pay even for a company growing this quickly, and isn't generating enough free cash flow to justify a fast grower's richer price.
- PEG < 1 (stricter for fast growers) ✕
- EPS growth 20%-50% ✓
- Debt/Equity < 0.5 ✕
- P/E < 40 ✕
- Price/FCF < 40 ✕
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Texas Instruments pass?
- Market Cap > $25B $257.4B
- Trailing P/E < 25 42.53
- PEG Ratio < 1.5 1.53
- Price/Book < 8 14.30
- Price/Sales < 7 13.23
- EPS Growth YoY > -5% +51.6%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Texas Instruments' margin of safety?
-196% on 2026-10-07 → -182% on 2026-10-23 (5 weekly readings).
Where is Texas Instruments in its 52-week range?
What is the short interest in Texas Instruments?
20,438,896 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Texas Instruments? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case -66%
- Short interest under 5% of float 2.3%
- Passes most of the 6 fundamental filters 2/6 passed
- Price run-up backed by value, not just momentum +84% off 52wk low
- Debt/equity stable since 2016 0.34 → 0.86
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Texas Instruments shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from TXN's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Texas Instruments' 10-year financials show?
From TXN's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Texas Instruments
What kind of company is Texas Instruments?
Texas Instruments makes analog chips, which manage power and convert real-world signals, and embedded processors used in industrial equipment, cars and electronics. It runs its own factories and sells to a very broad customer base. This site groups it with Semiconductors stocks.
Is Texas Instruments trading above or below its DCF value?
At $279.50, TXN trades 181.5% above this site's neutral DCF value of $99.29 per share, a margin of safety of −181.5%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Texas Instruments pass?
TXN passes 2 of 8. It passes Market Cap > $25B ($257.4B) and EPS Growth YoY > -5% (+51.6%). It misses Trailing P/E < 25 (42.53), PEG Ratio < 1.5 (1.53), Price/Book < 8 (14.30) and Price/Sales < 7 (13.23). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
What growth is Texas Instruments' share price pricing in?
At $279.50, TXN's free cash flow of $5.81 per share would have to grow 35.1% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
Is Texas Instruments's P/E ratio high or low compared with its own history?
TXN trades at 42.5× trailing earnings. At the end of each of its last 5 fiscal years its P/E was between 17.5× and 35.9× (average 26.4×), so today's multiple is at or above the highest of those years. Each year's P/E pairs net income per diluted share from the 10-K with the closing price at that fiscal year-end.
Does Texas Instruments raise any of Munger's inversion flags?
TXN fails 3 of the 5 tests in this site's Munger-style inversion check, so it raises 3 flags: Margin of safety, even in the bull case (-66%); Passes most of the 6 fundamental filters (2/6 passed); and Price run-up backed by value, not just momentum (+84% off 52wk low). It passes Short interest under 5% of float and Debt/equity stable since 2016. Munger's habit was to invert the question and look for reasons to hesitate. These flags are data-driven prompts, not a verdict, and they cannot judge management, competitive position or accounting risk.
Where do these numbers come from?
- Financial statements: Texas Instruments's 10-K annual report for the year ended Dec 31, 2025, filed Feb 6, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Texas Instruments Inc analysis
This page shows every value-investing check the site runs on Texas Instruments Inc (TXN) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.