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Texas Instruments Inc TXN

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Morningstar’s Analysis

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Texas Instruments’ Management Team Is Captaining a Steady Ship; Maintain $140 FVE

Brian Colello, CPA Sector Director

Analyst Note

| Brian Colello, CPA |

Wide-moat Texas Instruments hosted its annual update on its capital allocation policies, and while there were few surprises from the event, the presentation embodies everything we like about this high-quality business and its exemplary capital allocation policies, such as the firm’s focus on sustainable competitive advantages and free cash flow generation. We view the valuation as stretched in the low $170s, compared with our unchanged $140 fair value estimate, but TI remains on our investment radar if a wider margin of safety were to emerge.

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Company Profile

Business Description

Dallas-based Texas Instruments generates about 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world's largest maker of analog chips, which are used to process real-world signals such as sound and power. Texas Instruments also has a leading market share position in digital signal processors, used in wireless communications, and microcontrollers used in a wide variety of electronics applications.

12500 TI Boulevard
Dallas, TX, 75243
T +1 214 479-3773
Sector Technology
Industry Semiconductors
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 30,000