What does this company do and how does it make money?

Texas Instruments operates a focused semiconductor business where analog chips drive five-sixths of revenue. The company serves industrial, automotive, and data center markets with a geographic footprint that spans globally but remains anchored in the US, creating both diversification benefits and China exposure risk.

Five legendary investment frameworks analyzed this company.

Graham sees a 141% overvaluation, Buffett calculates 43 cents destroyed per dollar invested, yet insiders bought $102 million worth. When five legends say sell and management says buy, who's right? Tap any framework below to explore their full analysis and discover where they agree — and where they diverge.

How much cash does it generate and where does it go?

The company generates healthy cash flow but is transitioning from a heavy investment phase, with capex dropping from 70% to 41% of operating cash flow as manufacturing expansion completes. However, rising stock compensation to record levels and underwater buybacks at $311 average price versus $195 current price suggest capital allocation challenges.

Is the business getting stronger or weaker?

While revenue grows at a healthy 13% clip and operating margins have recovered, the underlying capital efficiency has deteriorated dramatically with ROIC collapsing 62% to just 3.9%. The company now destroys value with every dollar reinvested, as returns sit 4.3 percentage points below the cost of capital.

What could go wrong and has it survived trouble before?

The 2023 semiconductor downturn demonstrated the company's cyclical vulnerability with free cash flow plummeting 83.4%, while current leverage at the 98th percentile and interest coverage at the 5th percentile suggest limited financial flexibility. Yet insiders are betting $102M of their own money that these risks are manageable.

ROIC collapsed 62% to 3.9% while the stock trades at 33.9x earnings — premium pricing for deteriorating capital efficiency.

Is the stock priced for perfection, fair value, or pessimism?

The market prices Texas Instruments at a significant premium with earnings yielding less than risk-free treasuries, while DCF analysis suggests 141% overvaluation. The asymmetric reaction to earnings — falling on beats but rallying on the rare miss — indicates the stock is priced for perfection with little room for positive surprises.