Every year TXN has a capital management call where they update shareholders on their capital management long term targets and for the current year, they also look back at how they performed the previous year. I love that they do this and wish more companies would follow.
Here’s how they did in 2022:
Capital management target for 2023:
For 2023, our long-term objectives remain the same. For 2023, we have 2 updates that you will see highlighted. As we mentioned previously, we’re ensuring our capacity is prepared to support higher growth rates. As a result, we expect CapEx to average $5 billion per year from 2023 to 2026, and about 10% to 15% of revenue per year in 2027 and beyond.
Regarding inventory, our long-term objectives, such as maintaining high levels of customer service remain the same, and we updated the upper end of our inventory target.TXN Management
TXN updated their capex plan to support approximately 10% annualized revenue growth beyond 2030:
TXN has been focusing mainly on the industrial and automotive markets where they believe most of the market growth will come.
Industrial and automotive investments continue to be up broadly, reflecting our belief that these end markets will be the fastest-growing markets due to growing semiconductor content.TXN Management
Direct revenue from customers has been growing in the last few years.
In 2019, we formed a team dedicated to building our ti.com online business and accelerating investments in this channel. Since that time, we’ve expanded the number of countries where we support transactions in local currency, where TI is the importer of record, we’ve added new payment methods and provided new methods for financing. In addition, we’ve been investing in logistics and highly automated product distribution centers for less than 2-day delivery to customers’ doors or to their manufacturing docks.TXN Management
Free cash flow per share:
Dividend per share:
Shares have been coming down: