Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip giant Texas Instruments (NYSE: TXN) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Texas Instruments' business, and see what CAPS investors are saying about the stock right now.
Texas Instruments facts
|
Headquarters (Founded) |
Dallas (1938) |
|
Market Cap |
$29.6 billion |
|
Industry |
Semiconductors |
|
Trailing-12-Month Revenue |
$11.5 billion |
|
Management |
CEO Richard Templeton (since 2004) |
|
Return on Equity (Average, Past 3 Years) |
20.6% |
|
Cash/Debt |
$2.8 billion / $0 |
|
Dividend Yield |
2.1% |
|
Competitors |
QUALCOMM (Nasdaq: QCOM) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 1,555 members who have rated Texas Instruments believe the stock will outperform the S&P 500 going forward. These bulls include Clint35 and my fellow Fool Anders Bylund (TMFZahrim), who is ranked in the top 10% of our community.
Just two days ago, Clint35 touched on Texas Instruments' solid fundamentals:
A good value. Well-run company with good margins and a great balance sheet. P/E is just under 14 price to book is 2.88. I just wish the dividend was bigger.
As Texas Instruments continues to shift its focus toward high-margin smartphone application processors, the stock's recent weakness offers a seemingly attractive entry point. Of course, QUALCOMM is already a formidable force in the app chip space, and competition will only heat up over time. Still, the breakneck growth of smartphone usage makes Texas Instruments a particularly enticing bet. With no debt and an already solid market-share lead over the likes of STMicro and Maxim Integrated in analog chips, Texas Instruments seems like a safe bet, as well.
Last month, Anders chipped in with a bull pitch of his own:
[Texas Instruments] is reshaping its business to get out of the commoditized, low-margin market for mobile phone radio chips. The new focus is on high-end mobile processors. The upcoming OMAP4 chips should find their way into plenty of smartphones and tablets, thusly keeping the momentum alive. Super-cheap and with lots of growth opportunity at hand, I gotta recommend [Texas Instruments] today.
What do you think about Texas Instruments, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
