Texas Instruments Incorporated [TXN] moving down – What are the long-term prospects?

Texas Instruments Incorporated [TXN] is following downward trend in the market concluded with the last trading session. The shares of the Technology sector company has a current value of $116.07 after TXN shares went down by -2.79% during the last trading session. One of the reasons why Technology stocks may go bearish is decreased momentum in the press.

Texas Instruments Incorporated [NASDAQ:TXN]: Analyst Rating and Earnings

Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Texas Instruments Incorporated [TXN] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in 3/30/2020. On average, stock market experts give TXN an Hold rating. This is compared to its latest closing price of $119.40.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Texas Instruments Incorporated [TXN] is sitting at 3.40. This is compared to 1 month ago, when its average rating was 3.67.

Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on 07/28/2020.

Fundamental Analysis of Texas Instruments Incorporated [TXN]

Now let’s turn to look at profitability: with a current Operating Margin for Texas Instruments Incorporated [TXN] sitting at 39.60% and its Gross Margin at 63.70%, this company’s Net Margin is now 35.00. These measurements indicate that Texas Instruments Incorporated [TXN] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 39.08, and its Return on Invested Capital has reached 35.89. Its Return on Equity is 58.00%, and its Return on Assets is 28.00%. These metrics all suggest that Texas Instruments Incorporated is doing well at using the money it earns to generate returns.

Turning to investigate this organization’s capital structure, Texas Instruments Incorporated [TXN] has generated a Total Debt to Total Equity ratio of 68.88. Similarly, its Total Debt to Total Capital is 40.79, while its Total Debt to Total Assets stands at 34.05. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 62.45, and its Long-Term Debt to Total Capital is 36.98.

What about valuation? This company’s Enterprise Value to EBITDA is 15.63 and its Total Debt to EBITDA Value is 0.86. The Enterprise Value to Sales for this firm is now 7.46, and its Total Debt to Enterprise Value stands at 0.05. Texas Instruments Incorporated [TXN] has a Price to Book Ratio of 13.42, a Price to Cash Flow Ratio of 18.37 and P/E Ratio of 22.27. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.

Texas Instruments Incorporated [TXN] has 934.16M shares outstanding, amounting to a total market cap of 108.43B. Its stock price has been found in the range of 93.09 to 135.70. At its current price, it has moved down by -14.47% from its 52-week high, and it has moved up 24.69% from its 52-week low.

This stock’s Beta value is currently 1.15, which indicates that it is 3.25% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 55.14. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Texas Instruments Incorporated [TXN] a Reliable Buy?

Shares of Texas Instruments Incorporated [TXN], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.

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Author: Kevin Freeman