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Texas InstrumentsTXN +2.34%84 Return-on-Tangible-Asset is 20.68% as of Mar. 2026, which is 44% below its 10-year median of 36.95. GuruFocus rates TXN with a GF Score™ of 84/100 and a GF Value™ of $214.41 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,027 Semiconductors companies, Texas Instruments ranks better than 92.41% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Texas Instruments's annualizedNet Income for the quarter that ended in Mar. 2026 was $6,180 Mil. Texas Instruments's average total tangible assets for the quarter that ended in Mar. 2026 was $29,879 Mil. Therefore, Texas Instruments's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 20.68%.
The historical rank and industry rank for Texas Instruments's Return-on-Tangible-Asset or its related term are showing as below:
TXN'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 16.36 Med: 36.95 Max: 45.96
Current: 17.94
During the past 13 years, Texas Instruments's highest Return-on-Tangible-Asset was 45.96%. The lowest was 16.36%. And the median was 36.95%.
TXN's Return-on-Tangible-Asset is ranked better than 92.41% of 1027
companies
in the Semiconductors industry
Industry Median: 2.63
vs TXN: 17.94
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Texas Instruments Return-on-Tangible-Asset Related Terms
Texas Instruments Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Texas Instruments's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TXN vs MRVL, QCOM, ADI: Return-on-Tangible-Asset Comparison
For the Semiconductors subindustry, Texas Instruments's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Texas Instruments Return-on-Tangible-Asset vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Texas Instruments's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Texas Instruments's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 20.68% mean?
Texas Instruments (TXN) has a Return-on-Tangible-Asset of 20.68% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Texas Instruments and its competitors. This is 44% below median its historical median of 36.95. Over the past decade, Texas Instruments' Return-on-Tangible-Asset has ranged from 16.36 to 45.96. According to the industry distribution chart, Texas Instruments ranks #78 out of 1027 companies in the Semiconductors industry, placing it in the top 7.6%.
Is Texas Instruments' Return-on-Tangible-Asset too high?
Texas Instruments' current Return-on-Tangible-Asset of 20.68% is 44% below median its 10-year median of 36.95. Over the past 10 years, this metric has ranged from a low of 16.36 to a high of 45.96. The Semiconductors industry median Return-on-Tangible-Asset is 2.63. Texas Instruments' value of 20.68% is 686.3% above this industry median. Based on the distribution chart, Texas Instruments ranks #78 out of 1027 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Texas Instruments has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Texas Instruments' Return-on-Tangible-Asset compare to MRVL and QCOM?
According to the Semiconductors industry distribution chart, Texas Instruments ranks #78 out of 1027 companies for Return-on-Tangible-Asset. This places Texas Instruments in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.63. Texas Instruments' value of 20.68% is 686.3% above this benchmark. Historically, Texas Instruments' own Return-on-Tangible-Asset has ranged from 16.36 to 45.96 over the past decade. While the company's 10-year median is 36.95 vs. the industry median of 2.63, Texas Instruments has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Semiconductors company?
The median Return-on-Tangible-Asset among Semiconductors companies is 2.63, based on 1,027 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Instruments's current Return-on-Tangible-Asset of 20.68% is 686.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Texas Instruments and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Asset is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Instruments's current Return-on-Tangible-Asset is 20.68%, which is 44% below median its own 10-year median of 36.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Instruments stock overvalued right now?
Based on GuruFocus' analysis, Texas Instruments (TXN) is currently considered Significantly Overvalued. The stock's GF Value™ is $214.41, compared to a current price of $305.55 — trading 42.5% above its estimated fair value. The current Return-on-Tangible-Asset is 20.68%, which is 44% below median its 10-year median of 36.95 and 686.3% above the Semiconductors industry median of 2.63. Texas Instruments' overall GF Score™ is 84/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Texas Instruments (TXN), the current Return-on-Tangible-Asset is 20.68% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Texas Instruments (TXN) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Instruments stock appears to be overvalued.
The current stock price of $305.55 is trading 42.5% above its estimated GF Value™ of $214.41.
GuruFocus considers Texas Instruments to be Significantly Overvalued.
Key valuation signals for TXN:
Return-on-Tangible-Asset: 20.68% (44% below median its 10-year median of 36.95)
GF Value™: $214.41 vs. price of $305.55 (42.5% above fair value)
Industry Position: 686.3% above the Semiconductors median (#78 of 1027)
No single metric tells the full story. See the TXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world's largest maker of analog chips, which are used to process real-world signals such as sound and power. Texas Instruments also has a leading market share position in processors and microcontrollers used in a wide variety of electronics applications.
84GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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