What Has Driven Texas Instruments Stock Higher In Recent Years?

Texas Instruments Incorporated (NASDAQ: TXN) stock price rose about 38% from $128 at 2019 end to around $176 currently, primarily due to favorable changes in its revenues. During this period, the company, a designer and manufacturer of semiconductors and various integrated circuits, witnessed a strong 36% rise in revenues, and combined with a 2.7% drop in its outstanding share count, revenue per share jumped 39%. Additionally, over the same period, the S&P 500 returned around 36%, meaning that TXN stock managed to marginally outperform the index since late 2019.

In our interactive dashboard, Why Texas Instruments Stock Moved: TXN Stock Has Gained 38% Since 2019, we break down the factors behind this move.

Texas Instruments

TXN
’ Total Revenue has grown 36% from $14.4 billion in FY 2019 to $19.5 billion on an LTM basis

• TI’s total revenue grew from $14.4 billion in FY ’19 to $20 billion in FY’22.
• However, over the last 12 months, they have declined a bit to about $19.5 billion.
• TI’s largest segment is the analog semiconductor segment, which brought in $15.4 billion in FY ’22, making up about 77% of the company’s total sales.
• For additional details about TI’s revenues and comparison to peers, see Texas Instruments Revenue Comparison

Revenue per share increased 39% from $15.42 in 2019 to $21.49 currently

• TXN Revenue has increased from $14 Bil in 2019 to $20 Bil in the last 12 months, implying a 36% change. The company’s shares outstanding have decreased from 933 million at the end of 2019 to 908 million currently, implying a 2.7% change
• Due to this, RPS has jumped from $15.42 in 2019 to $21.49 currently.

Price-To-Sales (P/S) multiple for Texas Instruments rose strongly from 8.3x in 2019 to 10.5x in 2020 although it has declined to about 8.2x presently.

• TI’s P/S multiple rose strongly to 10.5x by late 2020, on the back of rising investor expectations surrounding a revival in sales growth amidst rising demand for the company’s products.
• However, due to current geopolitical tensions and the increased economic uncertainty weighing on the broader markets, the P/S multiple has pulled back, currently standing at around 8.2x.
• For additional details about the company stock returns and comparison to peers, see Texas Instruments Stock Return Comparison.

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