Summary
TXN's operating businesses have delivered consistent sales growth for five years running.
A rally has doubled the stock price per share since 2016.
TXN's 3.2% dividend yield appears adequately secured by cash incomes although in the short-term there's no guaranteeing another hike is forthcoming. I'm rating TXN a buy on IoT growth prospects.
Texas Instruments Inc (TXN) stock is trading at $95.81 with 960M shares outstanding making for a market capitalization of $92B. An impressive rally from $50 to $110 took place from 2015 through January 2018 before the momentum was lost and no sustained recovery has taken place. With the price now at $95, last seen during December of 2017, the stock has delivered a lost year before accounting for dividends.
How The Rally Began
The underlying business performance from TXN spurred on the stock's rally from $50. Revenues, on an annualized basis, have continued to grow even during this year's stalled stock price.
From a strictly financial perspective, TXN is in good shape. Their annual revenues have increased from $12B to nearly $16B since 2016. Balance sheet looks alright with just $5B in long term debt, easily covered by earnings. After paying taxes and capital expenditures, TXN reported $5.9B free cash flow for the year. The big question is how come the stock has not continued to soar?
