Fundamental Analysis
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Reasons to buy – TEXAS INSTRUMENTS
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see TEXAS INSTRUMENTS makes a margin of 41% on Operating Level and about 36% on Net level. This means that out of $1 that it makes $0.36 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 11% in the revenue and the net profit figures grew by 37%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see TEXAS INSTRUMENTS makes a Return on Assets of 31% and Return of Equity of 51% which is pretty good.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by TEXAS INSTRUMENTS to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
