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Attractive stocks have exceptional fundamentals. In the case of Texas Instruments Incorporated (NASDAQ:TXN), there's is a financially-robust , dividend-paying company with a a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Texas Instruments here.
Outstanding track record established dividend payer
TXN delivered a bottom-line expansion of 34% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 64%, which is an optimistic signal for the future. TXN's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that TXN manages its cash and cost levels well, which is an important determinant of the company’s health. TXN seems to have put its debt to good use, generating operating cash levels of 1.17x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
TXN is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Texas Instruments, I've compiled three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TXN’s future growth? Take a look at our free research report of analyst consensus for TXN’s outlook.
- Valuation: What is TXN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TXN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TXN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.