Texas Instruments Inc. (TXN) – Automotive segment outperformed single handedly

Texas Instruments Inc. Equity Report (TXN)(Q2FY23)

Stock Performance

Texas Instruments stock price has been flat since past 3-months period and gave -0.31% returns. The stock price decreased by -1% in past 1-year. The stock has a 52-week high of $188.12 and its 52-week low is $145.97. In the past 3 years, the stock has given returns of 21%. The tock surged from ~$140 in FY20 to $164 in FY23.

Quarter Performance

Second quarter revenue was $4.53bn, down -13% from a year ago. Gross profit in the quarter was $2.9bn, or 64% of revenue. From a year ago, gross profit margin decreased 600bps.

Guidance

For the third quarter, the company expects revenue to be in the range of $4.36bn to $4.74bn and earnings per share to be in the range of $1.68 to $1.92. The company expects its effective tax rate to be between 13% to 14%.

Highlights

Texas Instruments’ (TXN) financials are a cause for concern. The company’s margins have been declining consistently over the past few quarters, raising doubts about its long-term profitability. The accumulation of high inventories makes it even more difficult to recover margins.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Price Performance

Crispidea Coverage

No of Pages: 35

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