Texas Instruments
Let's take a look at Texas Instruments, a semi-conductor company with a highly efficient capital allocation strategy!


Stock Metal Investment's avatar
Good article, TXN is one of my top 5 positions and I recently published an article about it. Take a look at their CapEx roadmap (can be found in their IR capital management presentation). They aim to double revenues until the end of the decade, while improving margins further. https://seekingalpha.com/article/4501400-texas-instruments-is-a-vertical-integration-and-capital-allocation-master-class
The Hippie Investor's avatar
Love the company but hate that 50% of revenue comes from China. That's too much China exposure for me.
Eric Messenger's avatar
I checked $TXN out after reading “Common Stocks & Uncommon Profits” by Philip Fisher, written in 1957! I loved the 16 years of dividend increase, almost 20% dividend CAGR, impressive ROE, ROA, & ROC, excellent gross & net margins, annual revenue growth still +20%, 3 year earnings & income growth still +15%, all excellent quality metrics. What’s astonishing, is being able to get such a dominant business at valuations represented by a P/E <20, EV/EBITDA < 15, and a PEG <1. I can’t find any objective negatives. Seems to be a wonderful company at a more than fair price. Not sure why that level of growth doesn’t get a higher multiple🤷‍♂️I’ll take the safety and proven performance of $TXN all day at that price.

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