TXN Financial Analysis

Analysis Date: 1/24/2025

Business Model

TI generates revenue primarily through sales of analog and embedded processing semiconductors

Revenue Sources

• Analog: $3,174M (79.2% of Q4 2024 revenue)
• Embedded Processing: $613M (15.3% of Q4 2024 revenue)
• Other: $220M (5.5% of Q4 2024 revenue)

Income Statement Analysis

• Revenue decreased 2% year-over-year
• Operating profit declined 10% year-over-year
• Net income decreased 12% year-over-year

Balance Sheet Analysis

• Strong cash position with $3.2B in cash and equivalents
• Total assets increased 9.8% year-over-year
• Total liabilities increased 20.4% primarily due to additional long-term debt

Cash Flow Analysis

• Strong operating cash flow of $6.3B for trailing 12 months
• Free cash flow of $1.5B for trailing 12 months, up 11% year-over-year

Capital Allocation

Over the past 12 months, TI invested $3.8B in R&D and SG&A, $4.8B in capital expenditures, and returned $5.7B to shareholders through dividends ($4.8B) and share repurchases ($929M).

Management Commentary

Revenue decreased 3% sequentially and 2% from same quarter last year

Strong cash flow from operations of $6.3B demonstrates strength of business model

Q1 2025 revenue guidance: $3.74B to $4.06B

Overall Sentiment: Cautiously optimistic despite near-term challenges, focused on long-term investments and shareholder returns

Recommendation

Rating: Hold

Reason for Rating: Strong cash generation and shareholder returns balanced against near-term revenue weakness

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/24/2025, 9:16:05 AM