Benchmarks (as of 2024-09-04)

• Performance Comparison:
  • TXN has outperformed XLK in the short term, with positive returns over the past year and six months. However, over longer periods, TXN has underperformed XLK, particularly in the past two and three years. This suggests that TXN may be more susceptible to market downturns.
• Risk and Return Analysis:
  • TXN has provided higher returns than XLK in the short term, but lower returns over longer periods. This suggests that TXN may be a more volatile investment.
  • TXN has generally been more volatile than XLK, with higher annualized volatility. This is consistent with its higher beta value, indicating that TXN is more sensitive to market movements.
  • TXN's maximum drawdown of 25.52% is smaller than XLK's maximum drawdown of 33.56%. However, this does not necessarily mean that TXN is less risky, as it has experienced similar frequency of drawdowns.
• Risk-Adjusted Performance:
  • XLK has consistently offered a better risk-adjusted return than TXN, as indicated by its higher Sharpe ratio. This suggests that XLK has been more efficient at generating returns relative to its risk.
  • TXN's beta value of greater than 1 indicates that it is more sensitive to market movements than the overall market. This suggests that TXN is a higher-risk investment than the broader market.
• Overall Assessment:
  • TXN has shown strong short-term performance but has underperformed XLK over longer periods. Its higher volatility and beta value suggest a higher risk profile. While its maximum drawdown has been smaller than XLK's, its similar frequency of drawdowns indicates that it may not be significantly less risky. XLK's consistently higher Sharpe ratio suggests that it has been more efficient at generating returns relative to its risk. Investors seeking a more stable and risk-adjusted return may prefer XLK, while those willing to accept higher volatility for the potential of higher returns may consider TXN.

Peers Price History(as of 2024-09-04)

• Performance Comparison:
  • TXN has exhibited a mixed performance history compared to its peers. While it has outperformed AMD and QCOM in the short term (YTD, 1 Week, 1 Month, 3 Months, and 6 Months), it has underperformed in the longer term (1 Year, 2 Years, and 3 Years). This suggests that TXN's performance is more volatile and less consistent than its peers.
• Risk and Return Analysis:
  • TXN has generally provided lower annualized returns compared to AMD and QCOM, particularly in the longer term. This suggests that TXN may be a less attractive investment for investors seeking high returns.
  • TXN has consistently exhibited lower annualized volatility compared to AMD and QCOM, indicating a lower risk profile. This suggests that TXN may be a more suitable investment for investors seeking stability and lower risk.
  • TXN has experienced the smallest maximum drawdown compared to its peers, indicating a lower risk profile. This suggests that TXN is more resilient to market downturns and is less likely to experience significant price declines.
• Risk-Adjusted Performance:
  • TXN has generally had a lower Sharpe ratio compared to AMD and QCOM, indicating that it has not been as efficient in generating risk-adjusted returns. This suggests that TXN may not be as attractive an investment for investors seeking to maximize risk-adjusted returns.
  • TXN's lower beta suggests that it is less sensitive to market movements compared to AMD and QCOM. This indicates that TXN's price is less likely to fluctuate as much as the market, making it a potentially more stable investment.
• Overall Assessment:
  • TXN is a relatively stable and less volatile semiconductor company compared to its peers, AMD and QCOM. While it has underperformed in the longer term, its lower risk profile and smaller drawdowns make it a potentially attractive investment for investors seeking stability and lower risk. However, investors seeking high returns may find TXN less appealing due to its lower annualized returns and Sharpe ratio.
  • The recent trends suggest that TXN's volatility and risk profile have been improving, with its Sharpe ratio increasing and its drawdowns becoming smaller and shorter in duration. This suggests that TXN may be becoming a more competitive investment option in the semiconductor sector.

Peers Fundamentals(as of 2024-06-30)

1. Market Position and Size:
   • TXN is the second largest company in the peer group based on market capitalization, but the smallest based on revenue.
   • TXN's market cap is roughly 1.01 times larger than QCOM's market cap, but 0.82 times smaller than AMD's market cap.
   • TXN's revenue of 3822.0 is significantly smaller than AMD's revenue of 5835.0 and QCOM's revenue of 9393.0.
   • TXN's EBITDA of 1629.0 is larger than AMD's EBITDA of 1054.0, but smaller than QCOM's EBITDA of 2715.0.
   • TXN's net income of 1121.0 is larger than AMD's net income of 265.0, but smaller than QCOM's net income of 2108.0.
2. Profitability and Efficiency:
   • TXN is significantly overperforming in profitability metrics compared to both peers and industry standards.
   • TXN's Gross Profit Margin of 57.85% is significantly higher than AMD's Gross Profit Margin of 42.71% and QCOM's Gross Profit Margin of 55.56%, and is also significantly higher than the industry average of -3.09%.
   • TXN's EBITDA Margin of 42.62% is significantly higher than AMD's EBITDA Margin of 18.06% and QCOM's EBITDA Margin of 28.9%, and is also significantly higher than the industry average of -1559.56%.
   • TXN's Net Profit Margin of 29.33% is significantly higher than AMD's Net Profit Margin of 4.54% and QCOM's Net Profit Margin of 22.44%, and is also significantly higher than the industry average of -1594.18%.
   • TXN is highly efficient in generating returns relative to its size and market position, as it consistently outperforms its peers and the industry average in key return on capital metrics.
3. Financial Health and Stability:
   • TXN has a strong liquidity position, as evidenced by its high current ratio and quick ratio. However, its debt position is relatively high, as indicated by its high total debt to total equity ratio and debt to EBITDA ratio.
   • TXN's overall financial health is relatively strong, as it has a high level of profitability, strong efficiency in generating returns, and a solid liquidity position. However, its high debt levels and decelerating growth rates are concerns.
4. Valuation and Market Perception:
   • TXN's valuation is relatively attractive compared to its peers and industry standards, as it trades at a lower multiple of sales, EBITDA, and earnings than its peers and the industry average.
   • TXN's valuation is somewhat high relative to its market cap and peer group, as it trades at a higher price-to-book ratio than its peers.
5. Cash Flow and Capital Management:
   • TXN's cash flow generation strength is relatively strong, as it generates a significant amount of net operating cash flow and free cash flow. However, its capital expenditure is relatively high, which reduces its free cash flow.
   • TXN's cash flow generation strength is somewhat concerning relative to its size, peers, and industry norms. While its net operating cash flow is strong, its high capital expenditure and relatively low free cash flow compared to its peers raise concerns about its ability to sustain its growth and return value to shareholders.
6. Growth and Future Prospects:
   • TXN's growth rates are generally lower than the peer group average, particularly in sales, EBITDA, and free cash flow.
   • TXN's growth rates have been consistently decreasing over the 5-year period for sales, EBITDA, net income, basic earnings per share, free cash flow, free cash flow margin, and return on average total equity.
   • TXN's most recent year-over-year growth rates are lower than its 5-year CAGRs for sales, EBITDA, net income, basic earnings per share, free cash flow, free cash flow margin, and return on average total equity, indicating a deceleration in growth.
   • TXN's growth is concentrated in specific areas, such as EBIT margin and return on average total equity, where it has consistently outperformed the peer group average.
   • TXN's growth profile is somewhat concerning, as its growth rates have been decelerating and are generally lower than the peer group average. This suggests that TXN may be facing challenges in maintaining its competitive position and growing its business.
7. Potential for Investment:
   • TXN is a financially sound company with a strong track record of profitability and efficiency. However, its growth rates have been decelerating, and its high debt levels are concerns.
   • TXN's investment attractiveness is somewhat mixed. While it has a strong financial foundation and a leading market position, its decelerating growth rates and high debt levels are concerns.
   • Investors should carefully consider TXN's growth prospects and debt levels before making an investment decision.
8. Key Risks and Considerations:
   • TXN's high debt levels could pose a risk if the company faces financial difficulties.
   • TXN's decelerating growth rates suggest that it may be facing challenges in maintaining its competitive position and growing its business.
   • TXN's relatively low free cash flow compared to its peers raises concerns about its ability to sustain its growth and return value to shareholders.
9. Overall Assessment:
   • TXN is a financially sound company with a strong track record of profitability and efficiency. However, its growth rates have been decelerating, and its high debt levels are concerns.
   • TXN's overall financial position is strong, but its growth prospects and debt levels are areas of concern.
   • Investors should carefully consider TXN's growth prospects and debt levels before making an investment decision.