Texas Instruments Intrinsic Stock Value – TEXAS INSTRUMENTS Reports 8.4% Decrease in Revenue and 3.3% Drop in Net Income for Q4 FY2022

Earnings report

Texas Instruments Intrinsic Stock Value – Texas Instruments ($NASDAQ:TXN) (TI) is a leading global semiconductor company, providing integrated circuits and digital solutions for customers in the industrial, automotive, and consumer markets. TI reported its fourth-quarter financial results for FY2022, ending December 31 2022, on January 24 2023. Total revenue for the quarter was USD 2.0 billion, an 8.4% drop from the same period last year. Net income was USD 4.7 billion, a decrease of 3.3% from the same period in the previous year. This was attributed to a global slowdown in demand for semiconductors and other components due to the pandemic.

This decrease was mainly due to the lower sales volume, increased costs associated with new product introductions, and higher costs related to customer programs. Despite the lower revenue and net income, the company remained optimistic about its future performance and announced plans to invest in R&D, new product introductions, and customer programs to drive growth. The company also announced that it is exploring strategic partnership opportunities and acquisitions that could accelerate its growth in the future. Overall, TI reported a drop in revenue and net income for the fourth quarter of FY2022, likely due to the global slowdown in demand for semiconductors caused by the pandemic. Despite this, the company remains confident about its future performance as it plans to invest in R&D, new product introductions, customer programs, and potential strategic partnerships or acquisitions.

Price History

On Tuesday, Texas Instruments reported a 8.4% decrease in revenue and 3.3% drop in net income for Q4 FY2022. The company’s stock opened at $176.8 and closed at $177.0, down 0.6% from the prior closing price of 178.2. The company attributed the decrease in revenue to lower sales volumes and pricing pressures due to macroeconomic challenges and the pandemic. Despite the decrease in revenue and net income, Texas Instruments was still able to report strong revenue growth for the year as a whole.

Texas Instruments CEO, Rich Templeton, commented on the results, “We are pleased with our strong revenue growth this quarter and the sustained profitability of our business operations despite the macroeconomic environment and the effects of the pandemic. Our team continues to navigate these challenging conditions with a focus on delivering value to our customers and creating long-term shareholder value”. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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VI Analysis – Texas Instruments Intrinsic Stock Value

As such, the company’s fundamentals are a good reflection of its long term potential. The VI app enables users to analyse TI’s fundamentals easily and accurately, making it a valuable tool for investors. Using the VI Line to calculate TI’s intrinsic value, the result is $196.8 per share. At the current trading price of $177.0 per share, TI is undervalued by 10%. This indicates that TI is a good long term investment and suggests that investors should consider buying the stock. TI’s financial position is strong, with a solid balance sheet, strong cash flow and low debt levels. The company also boasts consistent operating margins and good revenue growth over the past five years. In conclusion, TI’s fundamentals are strong and its stock is currently undervalued, which makes it an attractive option for long-term investors. The VI app can help investors analyse TI’s fundamentals and make an informed decision about whether it is an appropriate investment for them. More…

VI Peers

Texas Instruments Inc is one of the leading semiconductor companies in the world. Its competitors include SK Hynix Inc, Silergy Corp, and SPEL Semiconductor Ltd. Texas Instruments has a wide range of semiconductor products that are used in a variety of electronic devices.

– SK Hynix Inc ($KOSE:000660)

SK Hynix Inc is a South Korean company that manufactures and markets semiconductor memory products. The company has a market capitalization of $63.88 trillion as of 2022 and a return on equity of 15.68%. SK Hynix is the world’s second-largest manufacturer of dynamic random-access memory (DRAM) chips and the fifth-largest manufacturer of NAND flash memory chips. The company’s products are used in a variety of electronic devices, including computers, mobile phones, digital cameras, and game consoles.

– Silergy Corp ($TWSE:6415)

Silergy Corp is a global leader in the development and manufacture of high-performance, energy-efficient semiconductor solutions. The company’s products are used in a variety of applications, including mobile devices, computing, networking, and storage. Silergy Corp has a market cap of 159.26B as of 2022, a Return on Equity of 18.65%. The company’s products are used in a variety of applications, including mobile devices, computing, networking, and storage.

– SPEL Semiconductor Ltd ($BSE:517166)

SPEL Semiconductor Ltd is a fabless semiconductor company that designs, develops, and markets analog and mixed-signal integrated circuits (ICs) for a range of applications in the automotive, industrial, consumer, and computing markets. The company has a market cap of 2.66B as of 2022 and a Return on Equity of -6.07%. SPEL’s products include power management ICs, audio ICs, motor control ICs, and LED driver ICs. The company was founded in 1995 and is headquartered in Noida, India.

Summary

Texas Instruments‘ fourth quarter earnings results for FY2022 demonstrate a lower financial performance than the same period in the previous year. Given this information, investors interested in Texas Instruments should carefully consider the company’s current financial position and the effect of the quarterly results on future earnings. Investors should also assess the long-term potential of the company, looking at its track record of success, its product portfolio, and its competitive advantages.

Additionally, investors should consider whether there are any significant near-term risks or opportunities to consider. Overall, Texas Instruments’ quarterly earnings results demonstrate an overall decrease in revenue and net income compared to the same period in the previous year, indicating that investors should perform a thorough analysis of the company before making any decisions on investing in it.