Texas Instruments Inc. (NASDAQ:TXN)

The financial ratios over the examined periods reveal notable trends indicative of changing market valuations and possibly shifting company performance and investor sentiment.

Price to Earnings (P/E) Ratio

The P/E ratio shows a declining trend from 27.2 in March 2021 to a low point near 16.05 in September 2022, suggesting a contraction in valuation relative to earnings or improvement in earnings. Subsequently, there is a marked increase, peaking at 37.07 in September 2024 before decreasing slightly to 31.02 by September 2025. This pattern may reflect fluctuations in earnings expectations or changes in investor perception of future growth.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio decreases steadily from 25.48 in March 2021 to 13.69 by September 2022, implying either an increase in operating profit relative to price or a reassessment of profitability valuation. From this low point, the ratio escalates sharply to a peak of 32.74 in September 2024, before falling again to 26.4 in September 2025. This volatility suggests variability in operating profit margins or investor valuation multiples.

Price to Sales (P/S) Ratio

The P/S ratio declines from 10.89 in March 2021 to 7.1 in September 2022, indicating decreasing valuation on sales or improved revenue performance relative to price. It then rises steadily to a high of 11.71 in September 2024 and retreats again to 9.06 by September 2025. This trajectory points to an initial period of valuation compression followed by optimism, subsequently tempered in later periods.

Price to Book Value (P/BV) Ratio

The P/BV ratio decreases from 16.52 in March 2021 to a trough of 7.74 in September 2023, denoting a significant reduction in price in relation to book value or an increase in book value itself. This trend reverses gradually, reaching approximately 10.66 in September 2024, and later declines modestly to 9.41 by September 2025. The initial sustained decline followed by partial recovery may reflect changes in asset valuations or investor confidence in the company's underlying net worth.

Overall, the financial ratios indicate a period of valuation contraction across multiple metrics through mid-2022 to late 2023, potentially due to improvements in earnings, operating profits, sales, or book value, or market caution. The subsequent increases in these ratios suggest a return of investor optimism or elevated valuation multiples, peaking around mid to late 2024, followed by some retrenchment. These fluctuations highlight the sensitivity of the company’s valuation to changing financial performance and broader market conditions over the analyzed periods.

The quarterly financial data reveals several observable trends regarding the company's share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the presented periods.

Share Price

The share price experienced fluctuations throughout the timeline. Initially, it showed moderate growth from approximately $181.82 to a peak near $187.10 in late 2021, before dipping to values around $157.87 by late 2022. Following this, the price recovered somewhat to reach up to $201.74 in the third quarter of 2024, suggesting a period of regained investor confidence. The last observed periods show a downward correction with prices ranging approximately between $162.13 and $191.38, indicating heightened volatility or market adjustments.

Earnings Per Share (EPS)

The EPS demonstrated an upward trajectory during the first half of the observed timeline, increasing from $6.69 to a high of $9.83 by the third quarter of 2022. However, after reaching this peak, a gradual decline is noticeable, with EPS steadily decreasing to around $5.27 by the end of 2024. Towards the final periods analyzed, EPS stabilized slightly in the mid-$5 range, indicating a potential plateau in profitability or earnings performance after the decline.

Price-to-Earnings (P/E) Ratio

The P/E ratio initially trended downward, moving from 27.2 to approximately 16.05 until the third quarter of 2022. This decrease suggests the market increasingly viewed the stock as undervalued relative to earnings during this period. Subsequently, the P/E rose markedly, peaking near 37.07 in the third quarter of 2024. This indicates increased investor valuation relative to earnings despite falling EPS figures. Following this peak, the ratio displayed a slight decline but remained elevated, reflecting a generalized increase in market expectations or perceptions of growth potential notwithstanding the EPS downturn.

In summary, the period shows an early phase of rising earnings accompanied by fluctuating but moderate share price growth. The earnings strength peaked by late 2022, followed by a consistent EPS decrease up to 2024. Concurrently, the P/E ratio inversely responded initially but surged later, highlighting complex investor valuation dynamics amid changing earnings. This pattern suggests a shift from earnings-driven share valuation towards sentiment or expectation-driven market pricing in later quarters.

The analysis reveals several notable trends in the financial performance and market valuation over the examined periods.

Share Price

The share price exhibited fluctuations across the periods, with values ranging from a low of approximately 141.79 US$ to a high near 201.74 US$. Initially, the share price showed moderate stability around the 170 to 180 US$ range, followed by a notable decline towards the middle of the analyzed time frame. Subsequently, there was a recovery with peaks approaching 200 US$, although this was not sustained, as the price showed some volatility toward the end of the period.

Operating Profit Per Share (OPPS)

Operating profit per share demonstrated a general declining trend over time. Early periods reflected relatively high operating profits, reaching above 11 US$ per share. However, from around the middle of the data set onwards, there was a consistent decrease, with values dropping to approximately 6 US$ per share towards the end. This suggests diminishing operating profitability per share over the observed quarters.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio, which represents the price investors pay for each unit of operating profit per share, exhibited significant variability. Early periods showed a downward trend from around 25 to below 14, indicating improving valuation relative to operating profit. After reaching this lower point, the ratio increased sharply, peaking above 32, before declining modestly again towards the latest periods. This volatility in P/OP ratio suggests changing market perceptions of the company’s profitability and future outlook.

In summary, despite fluctuations in the share price, there is a clear trend of declining operating profit per share, reflecting challenges in maintaining prior profit levels. The P/OP ratio's volatility indicates a market that is uncertain or reactive to the company’s changing profit dynamics, pricing shares variably against operating earnings over time. This interplay suggests that while market pricing has been responsive to profit trends, the share price movements are influenced by factors beyond operating profit changes alone.

The analyzed financial data reveals several notable trends over the observed periods.

Share Price Trends

The share price exhibited fluctuations with an overall pattern of volatility. Initially, the price increased moderately from 181.82 to a peak of 187.1, followed by a decline reaching as low as 141.79. Later periods show recovery phases with highs exceeding 200, notably at 201.74, before experiencing another dip. This suggests sensitivity to market conditions or company performance within each quarter, with alternating intervals of growth and contraction.

Sales per Share

Sales per share demonstrated a general upward trend in the first half of the sequence, rising from 16.7 to a peak above 22.25. Subsequently, there was a gradual decline through mid-values around 17 to 18, before a moderate increase in the last periods, reaching 19. This pattern indicates initially strong revenue growth per share which later softened, possibly reflecting market saturation, increased competition, or changes in product demand.

Price-to-Sales (P/S) Ratio

The P/S ratio decreased considerably from an initial 10.89 to a low near 7.1, reflecting either increased sales per share relative to price or a decreasing market valuation. Subsequently, the ratio rose sharply, peaking above 11.7, then moderated slightly, showing renewed investor valuation interest relative to sales. The volatility of the P/S ratio in this context highlights changing market sentiment and valuation multiples throughout the periods examined.

Overall, the data suggests a cyclical pattern in market valuation and sales performance. Despite some decline phases in sales per share, the share price and P/S ratio exhibit sensitivity to external factors, with recurring recoveries implying potential resilience or positive outlook at various points. Attention to the causes of sales per share fluctuations and the reasons behind P/S ratio volatility would be valuable for deeper insights into financial health and market positioning.

The financial data reveals several trends across the observed periods related to share price, book value per share, and the price-to-book value (P/BV) ratio.

Share Price

Over the period, the share price exhibits notable fluctuations. Initially, there is a slight upward trend moving from approximately $182 to $187 in 2021, followed by a decline reaching around $157 towards late 2022. Subsequently, the share price recovers and peaks near $201 in the first half of 2024. However, after this peak, the price experiences volatility with downward movements, ending near $172 in late 2025. Overall, the share price shows cyclical patterns with intermittent periods of recovery and decline rather than a steady trend.

Book Value per Share (BVPS)

The book value per share demonstrates a consistent and gradual increase throughout the periods. Starting near $11 in early 2021, it increases steadily to around $18 by the end of 2025. Minor fluctuations appear towards the latter periods, with slight declines and recoveries, but the overall trend remains upward, indicating growing shareholder equity on a per-share basis over time.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio indicates variability that correlates inversely with movements in book value per share and share price. Initially high, with values above 16, it declines substantially through 2021 and 2022, reaching lows near 7.7 by late 2023. Following this dip, the ratio shows partial recovery, increasing above 10 in mid-2024 before slightly falling again towards the end of 2025. The P/BV trend suggests changing market sentiment and valuation perspectives, reflecting periods when the share price either moved more aggressively compared to book value or when valuation became more conservative.

In summary, the company’s book value per share steadily grows, indicating improving intrinsic value, while the share price and P/BV ratio demonstrate more volatility. The price dynamics suggest market re-pricing episodes possibly driven by external factors or investor sentiment, whereas the consistent BVPS growth underpins a solid foundation in shareholder equity increasing steadily over time.