Texas Instruments Inc. (NASDAQ:TXN)

The share price exhibited a volatile trajectory over the observed period. Initially, the price remained relatively stable near the $30 mark from 2006 through 2008, before experiencing a sharp decline in 2009 to approximately $15. This drop indicates a significant market reaction, potentially linked to broader economic or company-specific challenges. Following this low point, the share price demonstrated a strong upward trend from 2010, peaking above $180 in early 2023. However, a slight retreat was observed in 2024 before gaining momentum again by 2025, culminating near $183.

The operating profit per share (OPPS) showed fluctuations but an overall growth trend. Starting at $1.74 in 2006, OPPS increased with intermittent decreases, notably dropping in 2010 after a 2009 decline. From 2011 onwards, it generally trended upward, reaching double digits by 2022 at $11.19. A decline followed in the subsequent years, falling to $6 by 2025, indicating possible profit compression or cost challenges during the later part of the period.

The price-to-operating profit ratio (P/OP) reflected market pricing dynamics relative to earnings. The ratio decreased sharply in 2009 to 8.01, the lowest over the period, suggesting undervaluation or heightened investor caution coinciding with the share price drop. Post-2009, the ratio fluctuated significantly, with peaks reaching above 26 in 2021 and 30 in 2025, indicating periods where the market price grew disproportionately compared to operating profit per share. This suggests investor optimism or expectations of future growth not yet realized in earnings. Conversely, lower ratios in some years pointed to more conservative market valuations.

Overall, the data reveals a company that experienced a major setback around 2009, followed by sustained recovery and growth in share price and operating profits until approximately 2022. The elevated P/OP ratios in recent years highlight market optimism but also pose a risk of overvaluation amid declining operating profits.

Share Price Trends

Stable around $30 from 2006 to 2008, significant drop in 2009 to $15, followed by strong recovery and growth peaking above $180 in 2023, minor fluctuations afterward with renewed growth by 2025.

Operating Profit per Share

Overall increase from $1.74 in 2006 to a peak of $11.19 in 2022, with periods of volatility and declines notably around 2009 and post-2022.

Price-to-Operating Profit Ratio

Sharp decline in 2009 indicating undervaluation, followed by fluctuating but generally elevated ratios reflecting periods of market optimism and potential overvaluation, reaching highs in 2021 and 2025.