Texas Instruments Incorporated (NASDAQ:TXN) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of TXN, it is a financially-healthy , dividend-paying company with a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Texas Instruments here.
Flawless balance sheet established dividend payer
TXN has a strong track record of performance. In the previous year, TXN delivered an impressive double-digit return of 38.07% Not surprisingly, TXN outperformed its industry which returned 13.79%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. TXN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. TXN’s has produced operating cash levels of 1.39x total debt over the past year, which implies that TXN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that TXN is a great dividend company, with a current yield standing at 2.15%. TXN has also been regularly increasing its dividend payments to shareholders over the past decade.
For Texas Instruments, I’ve put together three pertinent factors you should further research:
- 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!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.