Price to FCFE (P/FCFE)
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- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Return on Assets (ROA) since 2005
- Price to Sales (P/S) since 2005
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Free Cash Flow to Equity (FCFE)
Texas Instruments Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals fluctuations in cash flows and free cash flow to equity (FCFE) over the five-year period ending December 31, 2024.
- Cash flows from operating activities
- This metric increased significantly from 6139 million US dollars in 2020 to a peak of 8756 million US dollars in 2021, indicating stronger cash generation from core business operations during this period. In 2022, the cash flows slightly declined to 8720 million US dollars, which suggests a stabilization after the previous year's growth. However, a notable decrease occurred in 2023, with cash flows falling to 6420 million US dollars, and this reduction continued marginally into 2024, reaching 6318 million US dollars. This decline after 2021 indicates potential challenges in operational efficiency or changes in working capital management.
- Free cash flow to equity (FCFE)
- FCFE followed a somewhat different pattern. It started at 6488 million US dollars in 2020 and increased steadily to 7239 million US dollars in 2021, reflecting enhanced availability of cash for equity holders. After a slight decrease to 6917 million US dollars in 2022, a sharper decline is observed in 2023, dropping to 3849 million US dollars. In 2024, FCFE shows a slight recovery to 3878 million US dollars, but remains significantly lower than previous years, which may indicate increased capital expenditures, changes in financing activities, or other factors impacting distributable cash.
Overall, the period from 2020 to 2021 showcased robust growth in both operating cash flows and FCFE, suggesting improved financial performance. However, from 2022 onwards, both metrics reveal a downward trend, with operating cash flows decreasing moderately and FCFE dropping more substantially. This disparity between operating cash flow and FCFE during the latter years may highlight increased reinvestment or financing activities that impact cash available to equity shareholders. The slight uptick in FCFE in 2024 might indicate stabilization or initial signs of recovery.
Price to FCFE Ratio, Current
Texas Instruments Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Advanced Micro Devices Inc. | |
| Analog Devices Inc. | |
| Applied Materials Inc. | |
| Broadcom Inc. | |
| Intel Corp. | |
| KLA Corp. | |
| Lam Research Corp. | |
| Micron Technology Inc. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| P/FCFE, Sector | |
| Semiconductors & Semiconductor Equipment | |
| P/FCFE, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Texas Instruments Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| P/FCFE, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/FCFE, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Texas Instruments Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price
- The share price exhibited a generally positive trend from 2020 to 2024, with some fluctuations. It started at $169.93 in 2020, increased slightly to $171.42 in 2021, and further to $182.29 in 2022. However, it declined to $159.2 in 2023 before rebounding strongly to $183.03 in 2024, reaching its highest point in the observed period.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share showed an overall declining trend. The value rose from $7.05 in 2020 to $7.84 in 2021 but then decreased to $7.63 in 2022. This downward movement continued more sharply in 2023 and 2024, reaching $4.23 and $4.26 respectively, indicating a reduction in cash flow available to equity shareholders over time despite some earlier stability.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio steadily increased over the five years, starting at 24.1 in 2020 and marginally decreasing to 21.87 in 2021. From there, it rose significantly to 23.88 in 2022, then jumped to 37.61 in 2023, and further to 42.96 in 2024. This indicates that the share price has been increasing at a faster pace relative to the FCFE per share, suggesting a higher valuation multiple placed on the company’s free cash flow.
- Overall Insights
- While the share price eventually reached its highest point in 2024, the FCFE per share declined notably after 2021. The substantial increase in the P/FCFE ratio, particularly in the last two years, points to growing market optimism or expectations not fully supported by the cash flow generation trends. This divergence suggests that investors might be valuing other factors beyond current cash flow performance or anticipating future improvements in financial returns.